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For an industry that serves over 2.5 million people, Professional Employer Organizations can still be a bit of a mystery for the average business owner. The industry has helped businesses manage important HR functions for decades, but one of the most common questions owners ask is “Why have I never heard of PEOs before?”

There are a few reasons for this, starting with the fact that there’s no simple, one-sentence explanation for what PEOs do.

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If you own a small, five-person company, it might be tempting to think that you don’t need to invest any time or money into human resource functions like a big business. That’s a bad idea.

Every company needs HR, regardless of size. Just like how you don’t build a house without a proper foundation, a small business – or any business – needs to create a solid human resource foundation to succeed.

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