Why Your Business Needs A Professional Employer Organisation (PEO)

August 22, 2019

Categorised in: PEO, Professional Employer Organisation,

What is a PEO?

After huge success in the United States, the PEO model has only recently become popular in the United Kingdom. A professional employer organisation (PEO) is an organisation that provide employee management services to other businesses, including;

  • Payroll
  • Pensions auto enrolment administration
  • Benefits & welfare management
  • Recruitment
  • HR legal support

A PEO will partner with the client and will take employer status with the client’s employees as the employer of record for tax and National insurance purposes but the client will retain ultimate employer status and remain responsible for the employee or temp’s direction supervision and control. So other than receiving a raft of outstanding benefits the employees experience will not change.

Visit our PEO Model page to understand how this works in practise.

How Can A PEO Benefit My Organisation?


As an employer, you want all of your staff members to be happy and feel appreciated. The happier they are and the more appreciated they feel, the more productive they will be. Working with a PEO means all of your employees are grouped together with the rest of the PEO’s employees, forming one larger group for the PEO to use bulk buying power. This then enables them to provide benefits, such as access to health plans, on the same level as a large corporation, even though they work for smaller businesses. Providing your employees with access to a wide range of benefits is a primary goal of a PEO, keeping your staff motivated and appreciated.

Expert Legal Knowledge

The forever changing employment law can be very complex, and keeping up to date with the latest rules and regulation changes can be a time consuming and costly task. Working with a PEO enables you to utilise their legal and compliance team, avoiding any unnecessary lawsuits by tapping into their expert resources. A good PEO will also offer compliance training.


Pensions are a huge part of employee perks and under new workplace pensions regulations an essential element to anyone’s employment, so getting this right is key. Sourcing the best workplace auto enrolment pensions and managing it can seem a very daunting and time consuming task,  however, by working with a PEO, expert pensions administrators handle all of this on your behalf.


Working with a PEO will remove all payroll tasks from your organisation as they will manage all tax and National Insurance calculations, ensuring all submissions to HMRC are submitted on time. Not only will they keep you compliant against changing legislations, but they can also provide digital payslips for your employees that are encrypted for GDPR.


Working with a PEO will allow you to attract the best talent in your field, ensuring your business is operating with the best talent on board. The competitive benefits package that you will be able to offer employees will simply blow your competitors out of the water. If you need help with performance or disciplinary issues, they will also be available to assist you with expert advice and guidance whenever necessary. 

To summarise, working with a PEO will not only save you a huge amount of time and money, but, it will also help keep your staff engaged and motivated to continue working hard, contributing to the overall success of the business.

Revolutionise Your Business Today By Partnering With Hive360

Hive360 offers a cost effective PEO model that could help you unlock the true potential of your business. Relinquish yourself of payroll, pension and HR administration tasks today by contacting us on 0121 661 4851 or completing our online contact form.