What is a primary benefit of utilizing Professional Employer Organizations (PEOs) for staff?

Utilizing Professional Employer Organizations (PEOs) offers organizations several advantages, one of which is access to better health insurance. PEOs pool together multiple client companies, which allows them to offer employees a broader range of benefits than many smaller businesses could provide on their own. This pooled approach often leads to more competitive pricing and better coverage options, which can improve employee satisfaction and help attract and retain talent.

In contrast, the other options do not align with the primary benefits typically associated with PEOs. Increased employee responsibilities may not be a direct result of using a PEO, as their primary role is to assist with employment-related functions rather than altering employee duties. Higher salaries for all employees are not a benefit guaranteed by PEOs; salaries are determined by market rates and organizational policies rather than the use of a PEO. Lastly, strict termination policies are generally determined by the organization itself or by labor laws, not imposed by PEOs. Consequently, the main advantage of accessing superior health insurance options through a PEO is a key reason organizations choose to partner with them.