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Why spend time on HR administration activities when you can outsource HR to a Professional Employer Organization (PEO)?

Nine questions to determine if a PEO is right for your business

As a leader, you are required to inspire a motivated group of employees to be as productive as possible so you can drive growth and manage and reduce costs. It’s also your role to talk with stakeholders and customers to manage expectations and deliver on performance commitments. But being in charge also comes with a lot of human resource-related (HR) paperwork and administration—activities that can distract you from the work that needs to get done. Why spend time on HR administration activities when you can outsource HR to a Professional Employer Organization (PEO)? 

A PEO like Oasis provides outsourced, integrated HR-related services such as payroll processing, employee benefits, legislative and regulatory compliance, and risk management. Review the frequently asked questions below to see if the time is right for your business to work with a PEO.

1. What types of organizations work with a PEO?

We work with businesses of all sizes and industries and can tailor our services to meet your unique needs. We take care of the many HR-related functions so you can stay focused on your business and your team. A PEO is best suited to any company interested in improving performance and retaining and engaged employees.

2. How many businesses use a PEO?

PEOs in the United States provide services to nearly 180,000 businesses employing between 2.7 million and 3.4 million people. 

3. What’s the difference between a PEO and HR software?

The PEO allows your company to outsource key HR functions such as payroll, benefits and employee training, as well as providing guidance for maintaining compliance with federal and state labor employment laws. Software only provides a platform for you to manage all of these activities on your own.

4. How are PEO services delivered?

Oasis has a two-tiered touchpoint Service Model providing you with a payroll expert and an HR generalist to guide your day-to-day strategy and growth initiatives. You will also be supported by subject matter experts with guidance on recruitment, safety, benefits and workers’ compensation when you need it.

5. How does a PEO help control HR costs?

A PEO's economy of scale helps you to lower employment costs and increase the bottom line. You can maintain a simple in-house HR infrastructure or none at all by relying on the PEO, thereby reducing hiring overhead. Oasis provides critical assistance with employer compliance, as well as time savings by handling routine and redundant activities.

6. When is the best time to join or leave a PEO?

Generally, the best time to join or leave a PEO is January 1st, followed by deadlines for quarterly tax filings. If you make a change at other times, your company and employees will receive multiple W-2s and tax forms, or miss out on receiving the necessary forms.

7. Do I have to use all of a PEO’s services?

Nearly all of our services are included at no additional cost as part of our Service Agreement. Additional services are offered on an a la carte basis. This allows us to create a customized plan specific to your needs. You can choose as many of these additional services as you need and only pay for the ones that you use.

8. What value do my employees receive from working with a PEO?

We can help to accelerate the time it takes for new employees to contribute and orient them on all the benefits you have on offer. You will be able to boost employee morale and commitment—knowing payroll will be delivered correctly, every time. Employees can have confidence in their compensation package and may be more committed to stay with your company. And finally, employees can benefit from a robust self-service website to easily edit personal information and access pay stubs, tax forms, handbooks and more.  

9. How will my business benefit from working with a PEO?

According to research by the National Association of Professional Employer Organizations, clients who work with a PEO can:

  • Save up to $1,775 per employee per year in HR costs.
  • Save on average 27% on their HR-related costs.
  • Save on average of 30% on their costs related to workers’ compensation.  
  • Expect fewer concerns about hiring, retaining and motivating employees.

If you think the time might be right to work with a PEO, we encourage you to watch this brief video to learn more about how a PEO can add value to your business. 

Author: Barry Gauch, Senior Director, PEO Sales, Oasis, a Paychex® Company. You can reach him at

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When you work with Oasis, you are able to take full advantage of our size, strength, and relationships with leading benefits providers. We provide remarkable value by offering integrated, cost-effective solutions for your business.