PEOs can unburden small-business owners

Tips For Small Business

July 06, 2008|By Stephen L. Rosenstein

Nothing good comes easy, and that includes hiring and managing good employees for your small business. That's why many entrepreneurs are turning to professional employer organizations (PEOs) to handle the complex, time-consuming administrative burdens of human resource management.

PEOs are companies that help businesses find and hire people, plus manage such things as health benefits, workers compensation claims, payroll, unemployment insurance and more.

An advantage of using a professional employer organization is that it already has experienced human resources pros who can handle benefits, payroll, OSHA compliance and just about everything else you will need. By bringing employees into a larger group, a PEO can offer your workers benefits such as health insurance and retirement plans - perks you'd be hard-pressed to deliver on your own.

Small-business owners often dread the prospect of reading mountains of resumes and conducting interviews for prospective hires. PEOs can reduce this burden.

An excellent source of information for identifying and working with PEOs is the National Association of Professional Employer Organizations (NAPEO). Its Web site,, describes how PEOs work, the benefits they offer new and growing small businesses, and guidelines for selecting one that's right for your human resources needs.

Stephen L. Rosenstein is co-chairman of the Greater Baltimore SCORE Chapter No. 3. Call 410-962-2233 to speak to a SCORE counselor or go to To send a question to SCORE, e-mail

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