With the current financial climate, small and mid size companies should evaluate working with a Professional Employer Organization firm to handle their HR Administration tasks cost efficiently.
Say you are the owner of a small or medium size firm.
All things being equal, your business should be humming along right now.
However, it seems that more and more of your attention is distracted by HR Administration details such as benefits administration, personnel issues, or insurance, rather than growing your business.
If you are in this situation, a Professional Employer Organization is perhaps one option that's worth investigating.
Here's how it works, Professional Employer Organization are co-employment companies.
The Professional Employer Organization handles all the HR Administrative duties while you, as the client company owner, continues to direct the employees' day-to-day activities.
PEOs are paid by way of a percentage of the payroll between 3 to 15% of the total payroll.
PEOs work with many companies in this manner so they can get the best rates for insurance and benefits packages because of the economy of scale.
Here are some other benefits in working with a PEO:

• Your firm can share employment related liabilities through this co-employment arrangement.
  
• Workers' Compensation is no longer a risk to your company since the PEO is the employer on record.
  
• Take on the administrative burden of payroll processing, HR support and benefits administration
• PEOs gain access to Fortune 500 style benefits for your company at large-group savings
• Human Resource expertise with professionals who have extensive HR administration best practice, regulatory and compliance knowledge
• In some case, the PEOs can do the recruiting, hiring and firing of employees on your behalf.