Venture capitalists like PEOs.
Venture capitalists like PEOs, the acronym used for personnel employment organizations. Why is this? Because PEOs enable rapidly growing enterprises to ramp up their hiring without getting bogged down in all the administrative tasks related to onboarding new employees. VCs like founders and co-founders to focus, focus, focus on running their start-ups. Focus onn what, pray tell? On products, production, services, customer service, sales, and marketing.
PEOs handle hiring-related administrative details.
PEOs handle all the administrative details related to hiring. They provide interview forms, interview guidelines (what not to do), I-9 and W-4 forms, ready-made templates, and HR and related training. The list goes on. PEOs also provide benefits and benefits administration, which are key to enticing new employees. Through PEOs small businesses gain access to 401K plans and health care benefits at large company, group rate pricing because the PEO combines employees from all the companies it contracts with.
PEOs help companies hire fast.
In addition, when a company is growing rapidly, it’s doing all it can to hire people fast enough to cover demand. If the management team had to focus on more of the human resource activities than recruiting, interviewing and ensuring a good fit, how could the management team be sure they focused properly on the other areas necessary to support rapid expansion? Answer: They could not.
To read more on the subject, read the article Benefits of Personnel Employment Organizations (PEOs) .