A Professional Employer Organization (PEO) is a company that provides comprehensive human resource services to small and medium-sized businesses. By partnering with a PEO, businesses can outsource tasks such as payroll processing, employee benefits administration, and compliance with labor laws. This allows companies to focus on their core operations while ensuring that HR functions are managed efficiently. PEOs also help businesses gain access to better employee benefits and insurance options, which can be challenging for smaller companies to negotiate on their own. By pooling employees from multiple businesses, PEOs can offer competitive rates and improved services, enhancing overall employee satisfaction and retention.