The PEO Operational Model
Down through the ages, many wise people have recognized change as a constant. These philosophers have managed to put their fingers right on the paradox of the PEO model: PEOs must perform payroll, benefits, and HR tasks for their clients according to standardized rules, with the utmost accuracy and security: the same every time.
However, at the same time, benefits programs change, worksite employees come and go, clients come and go, and the laws and regulations governing how PEOs must perform these tasks are constantly changing. It only radiates out from there:
- The American workforce changes through HR trends and technology;
- Local and regional economies, as well as the national economy, change;
- Local, regional, and national market conditions change;
- These changes bring uncertainty to the business world; and
- PEO clients respond to these changes, their needs change, and so the PEO must change as well.