The landscape of human resources (HR) for small and mid-sized businesses (SMBs) is undergoing a significant shift. One of the driving forces behind this change is the professional employer organization (PEO) industry. PEOs have seen a surge in interest in recent years, with a growing number of decision-makers acknowledging their growing role in HR solutions.

How the PEO industry has evolved

PEOs have been around for decades, but their initial model, often referred to as "employee leasing," emerged in the late 1960s to help companies manage the rising costs of workers' compensation insurance coverage. Over time, the industry has matured, shifting towards a shared employment model. This new model clarifies the division of responsibilities between the PEO and the client company, fostering greater trust and transparency. 

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Jay Starkman

Jay Starkman is the founder and CEO of Engage PEO, a professional employer organization that provides full-service HR and benefits offerings to thousands of small and mid-sized business owners across the U.S.