HR Glossary

What is Professional Employer Organization (PEO)?

A firm that enters into a co-employment arrangement with a client company, taking on responsibility for payroll processing, benefits administration, workers' compensation, and HR compliance while the client retains control over day-to-day employee management and business operations.

Why it matters in hiring

Professional Employer Organization (PEO) comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with P

• Probation Period (Singapore)
• Probation Period (UAE)
• Probation Period
• Professional Development
• Professional Tax
• Profit Sharing
• Programmatic Job Advertising
• Psychological Safety

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.