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What is a PEO? |  PEO Blog

Wednesday October 26, 2011

What is a PEO? 

I have decided that I need push everyone in the Professional Employer Organization to started talking about the term PEO as it is defined by our industry.  And I will do this until we grow from the 3% market penetration we’ve been at for several years. 

Wikipedia has the following definition;  A professional employer organization (PEO) is a single source provider of integrated services which enable business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation and other strategic services, such as recruiting, risk/safety management, and training and development.  It does this by hiring a client company’s employees, thus becoming their employer of record for tax purposes and insurance purposes.  This practice is known as co-employment. 

Well that’s a good start, and over the next several months we will get into additional definitions and explanation’s – but back to my point. 

As an industry, Professional Employer Organizations are NOT TALKING ENOUGH.  Every PEO in the country (its estimated that there could be as many as 700 PEO’s in the United States) needs to be writing blogs, using social media like LinkedIn, Twitter and Facebook to get the word out.

The PEO concept is brilliant, if you are a small business you need to be using the services of a quality PEO.  As a business owner utilizing a PEO sets you FREE; you gain Freedom to focus on your business and not on day to day employment issues.

I have offered the industry a platform, and the invitation remains open, if you have a blog, story, event, service anything that is PEO neutral send it in for consideration to be included in the blog on  Email your content to – you will be recognized as the author with a bio and link, help us grow the industry blog by blog!

By Rod Diekema, Rod is the CEO of LLC and Managing Partner of Michigan based Employee Capital Management LLC a leading Regional PEO serving Michigan and Illinois.  For more information, please visit  or

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