Every small business has a lot to think about – how to find customers, how to grow revenues, how to manage your costs, and the list goes on.  One area that can get left behind is Human Resources.  Yet, without the right people and full compliance with federal and state laws, your business can run into trouble.  That’s where a PEO comes in.

What does a PEO do?

A Professional Employer Organization (PEO) provides comprehensive HR solutions for small and mid-size businesses. Payroll, benefits, HR, tax administration, and regulatory compliance assistance are some of the many services PEOs provide to growing businesses across the country.

Why use a PEO?

A recent study by McBassi and Company highlights why PEOs are good for small businesses and their employees.  Small businesses that work with a PEO:

* expect annual median revenue growth that is 40% greater than that of firms not using a PEO;

* are significantly less concerned about the ability to handle key human resources challenges;

* have engaged, loyal employees with turnover that is 10 to 14 percent lower than industry averages; and

* are less likely to go out of business.

How to choose a PEO?

To learn more about how to choose a PEO that can help your business, have a look at the guidelines provided by the National Association of Professional Employee Organizations (NAPEO).  You can find the guidelines here

SCORE Austin has a partnership with Trinet, a national PEO with offices in Austin.  They’re here to help!  In addition, you can search for other PEOs here.


A PEO can be a big help to your small business.  There is a lot of useful information on the NAPEO website.  And, of course, you can always talk to your SCORE mentor.  We’re here to help!

About the author:

Brian Kieley is a mentor in the Austin chapter of SCORE. He has a long career as an executive in payments, customer service, operations, social media, and product development.

Is it time for you to use a Professional Employer Organization (PEO)?