What is a Professional Employer Organization (PEO)?

Partnering with a service provider can help you boost your operations. A PEO is one of the best solutions for businesses that want to relieve their administrative burden. So, you may ask: What is a Professional Employer Organization (PEO)?


Many businesses don’t know what a PEO is, so they prefer not to look for this service. However, you should know that working with a PEO can help you in several ways. Therefore, if you don’t know how a PEO works, it’s time to start learning about it.

In this article, you’re going to gain valuable insight into PEOs and how they can solve your HR and legal problems. You’ll learn how to select the best service provider for your business to receive maximum results. Let’s observe:

  • What is a Professional Employer Organization (PEO)
  • Should you partner with a PEO?
  • What services can you get with a PEO?
  • Which steps you need to follow to evaluate a PEO?
  • What should you look for in a PEO?
  • What should the PEO offer regarding compliance?
  • How can you evaluate the PEO’s benefits package?
  • Why should you look for a tailored PEO service?
  • Do you need an SLA when working with a PEO?
  • Why should you check the PEO’s reference?
  • How can EOR Middle East help you with PEO Services?

What is a Professional Employer Organization (PEO)

Professional Employer Organization

Organizations nowadays are struggling with the administrative workload. There are too many documents and paperwork they need to handle. And, if the company works in a different country, you must add the compliance issues too.

If the internal HR team is consuming too many resources and requires a lot of effort, the company may neglect its core business functions. In addition, if the HR tasks aren’t handled properly, you could face challenges with your workforce.

As you can see, it’s crucial to have solid HR operations and seamless processes so your business can operate smoothly. However, achieving this may be difficult, particularly if you don’t have enough experts or software to carry out the tasks.

Therefore, you may need to partner with a service provider that can help you relieve your administrative burden. In this regard, a PEO can be the perfect solution for your business.

What is a Professional Employer Organization PEO company?

A Professional Employer Organization, also known as a PEO, it’s a service provider that focuses on assisting businesses on several administrative tasks and functions that tend to be tedious and time-consuming.

A PEO offers assistance in some of the following areas:

So, a PEO can handle all the tasks that can be challenging or complicated for a small, medium or large-sized corporation. With a PEO, the company can boost its operations by relieving the workload to the in-house HR team letting it focus on other important tasks.

Should you partner with a Professional Employer Organization?

What is a Professional Employer Organization (PEO)? Once you know the answer to this question, you may still wonder if this kind of business partnership is suitable for you.

There are some aspects that indicate that your business should partner with a PEO. Some of the warning signs are the following:

  • You’re struggling with your HR management
  • Your business is facing issues with compliance
  • The recruitment process is being ineffective because you’re getting bad hires or a high turnover rate
  • Your payroll department is facing challenges with timely payments and taxes
  • The immigration procedures are hard to follow and you don’t know how to obtain these crucial documents for your workforce
  • Your job offers are not attractive because you don’t have access to great benefits

All of the previous aspects can be improved by partnering with a PEO. If your business is facing one or more of these issues you definitely need to look for a PEO to assist you.

For businesses that enter into the Middle East countries, it may be particularly challenging to keep up with compliance or with local rules. In this regard, EOR Middle East can be the best partner for you.

What services can you get with a Professional Employer Organization?

Professional Employer Organization

Many companies ask the question: What is a Professional Employer Organization (PEO)? But in addition to knowing what it is, it’s important to know which services it offers.

Perhaps you haven’t made the decision of partnering with a PEO because you don’t know what you can get. The first thing you should know is that PEOs offer basically the same services, but some PEO companies may not include a few of them, or some may not offer the same approach.

Therefore, some of the most common services you can get with a PEO are the following:

  • Payroll outsourcing: calculations, issuing pay slips, deductions, filing taxes, making payroll reports, and more.
  • Hiring & recruitment services: job postings, job descriptions, background checks, screening, shortlisting, interviews, onboarding and more.
  • Employment services: ensure compliance with local employment law, draft compliant employment contracts, prevent employment complaints, and more.
  • Training & development services: professional development programs, specialized training and more.
  • HR management: development of HR policies, HR Consultancy, provide better benefits and more.
  • Immigration and Government Services: apply for work permits and visas, gather documentation, and more

Which steps you need to follow to evaluate a PEO?

Learning about the services that a PEO can offer to improve your business can help you decide to look for a company to enter into the partnership.

But, before deciding to establish a business relationship with a third party, you should carry out a few steps. In this regard, we have the following considerations that you should evaluate first:

  • Consider your business needs: assess your current HR status and determine in which aspects you need help. In addition, write down the challenges you face with your administrative tasks.
  • Consider the service provider you need: once you know your business needs, you must know what kind of service provider can solve your challenges. Make a list of PEO companies and evaluate each one regarding the service they offer.

What should you look for in a PEO?

Professional Employer Organization

Now that you know your business needs and challenges, it’s time to look for the PEO provider that can help you.

But, you shouldn’t do this process blindly. There are some aspects that you should consider before. We have some of the most relevant as follows:

Suite of services

Look for a PEO that can offer a wide range of services. And, those services should solve all of your current needs. In other words, look for a one-stop solution for your business.


A great PEO is one that offers a tailored service and that has flexibility. The PEO should be able to adapt the service according to your needs.


Look for a PEO that has top specialists and outstanding resources such as tools, software, and additional features that care aimed to boost your business.

What is a Professional Employer Organization (PEO)? If you still have some inquiries you can contact EOR Middle East to solve them.

What should the PEO offer regarding compliance?

Compliance is another major aspect of PEO Services. In fact, it’s one of the main reasons why companies decide to partner with a PEO.

When you’re evaluating the best PEO provider for your business, you should know what to look for in terms of compliance. Here we have the following features of a great PEO in terms of compliance:

  • It has a team of legal experts that keep up-to-date with constant changes in regulations
  • The HR and legal team have demonstrable experience handling compliance issues
  • It offers a dedicated team to handle compliance in several areas
  • It has clear business practices regarding how to ensure compliance

How can you evaluate the PEO’s benefits package?

What is a Professional Employer Organization (PEO)? It’s a company that offers several services, but one of the most important is the benefits package.

Small and mid-sized corporations may not have enough resources to provide outstanding benefits to its workforce. But, with a PEO, you can get a cost-effective solution that will allow you to offer better benefits to your employees.

When you’re deciding which PEO is the best for your business, you should consider which benefits it offers.

In this regard, you should check the PEO’s benefits package to determine if it’s suitable for your business. Here we have the following steps to evaluate a PEO in this regard:

  • Ask for the PEO’s benefit program
  • Check if they offer additional perks that could improve your job offer
  • Make sure the PEO offers benefits in compliance with the law
  • Ask if the benefits package can be customized regarding your particular workforce

Why should you look for a tailored PEO service?

Professional Employer Organization

A PEO Service should be flexible and customizable. Many companies don’t partner with a PEO because they offer a fixed service that may not suit their needs.

Therefore, you should look for a PEO that has the following characteristics:

  • Range of services: a PEO that offers several services is more likely to develop a comprehensive solution for your business.
  • Tailored service: since the PEO has a suite of service, it should offer a tailored approach, aimed to solve your particular challenges and issues, as well as boosting your current operations.
  • Scalability: if your business is growing, you should partner with a PEO that offers a scalable service. This way you can take advantage of customizing your service according to your workforce’s needs.
  • Add or remove services: perhaps you may want to hire a payroll outsourcing service, but maybe in the future you won’t need it because you plan to build your own internal payroll team. In this regard, you must look for a PEO that lets you add and remove services according to your needs.

Do you need an SLA when working with a PEO?

An SLA is a Service Level Agreement, which it’s an important document that can improve your partnership. In an SLA it’s established the responsibilities of both parties as well as the scope of the service.

It’s perfect for protecting your business, just in case the provider doesn’t comply with what’s established in the contract.

When you’re evaluating the best PEO companies, you should look for one that offers an SLA. Stay away from those PEOs that don’t want to draft an SLA since they may not be trustworthy.

Why should you check the PEO’s reference?

What is a Professional Employer Organization PEO company? Once you know what a PEO is, you should start checking for its references.

This will help you select the best PEO for your company. Since there are many PEOs offering their services, you should look for the one that can understand your needs and offer the best solution for your particular requirements.

For this reason, experience is highly important. By proving that the PEO has experience handling companies similar to yours, and working with other businesses in the same industry, you can be sure that the service provider is going to understand your needs.

So, here’s the following you should look for in a PEO regarding references:

  • Comments and reviews from former clients
  • Proven experience assisting businesses within your industry
  • Check the PEO’s experience working with companies that are the same size as yours
  • Check PEO’s digital presence to learn more about its vision and goals

How can EOR Middle East help you with Professional Employer Organization Services?

Here in EOR Middle East, we can help you solve your business needs. With our comprehensive PEO Service, you can have peace of mind since we will take care of all your administrative tasks.

You can focus on your core business activities while we handle everything on your behalf. Our team of HR and legal experts have unrivaled expertise and we will ensure you receive exactly what you need. Boost your operations and take your business to another level by accessing our wide range of services.

Would you like to contact us to know more about PEO Services? Call us at 0097143316688 or send an email to [email protected] and you’ll talk to one of our representatives that will gladly answer all of your questions.

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