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Instead of a PEO, Consider Outsourced Human Resource Professionals

So, in my post last week, I noted that one of the speakers at a recent panel I was on had suggested using a PEO for startups. And for some businesses, it may be worth the cost. But the truth, of course, is that for many employers, PEOs aren’t the best choice. They may be an unnecessary cost and don’t solve the issues they really need fixing. PEOs can fail to file taxes properly, for example. PEOs won’t assume liability if you misclassify an employee either. And a PEO can impose restrictions for risks that you would otherwise feel comfortable taking. But perhaps most of all, PEOs can feel impersonal. Sure, they are a co-employer, but there isn’t a PEO staff person on site — one that can provide the personal touch of an HR person. Does that mean that you ought to hire an in-house human resources person? Not necessarily. There are several great local options and I’ve interviewed a few previously on this blog.   This is where an outside HR consu...