Running a small business is hard enough without drowning in payroll issues, compliance headaches, or the endless admin that comes with managing people. That’s where PEO solutions come in. A Professional Employer Organization acts like an off-site HR team, giving small businesses the support they need to grow while helping business owners keep themselves out of trouble.
In this blog, we’ll break down:
Let’s start with the basics: what exactly is a PEO?
A PEO, or Professional Employer Organization, is your HR department—and then some. It’s not a payroll app. It’s bigger, sharper, and designed to give your business real leverage.
When a business partners with a PEO, it enters into what’s called a co-employment agreement. This structure doesn’t change who manages the business — you retain full control over hiring, firing, and daily operations. Instead, the PEO becomes the employer of record for certain administrative functions, such as payroll, benefits administration, and tax filings.
This shared structure allows the PEO to provide access to benefits programs and compliance support, while you stay focused on leading your team and growing your business.
Here’s what lands on the PEO’s plate:
That’s the standard package, but many PEOs (including BBSI) go even further. We offer business consulting, recruiting support, and strategic advice that small businesses wouldn’t normally have access to.
For small business owners, time and money are the two things they never have enough of. PEO solutions directly tackle both, while also solving the headache of staying on top of rules and keeping employees happy:
PEOs cut out hidden costs like the hours managers waste fixing payroll mistakes or the churn caused by employees leaving for jobs with better benefits. They also bring expertise that small businesses can’t afford in-house, whether that’s an HR pro writing policies or a safety expert lowering workplace risk.
In fact, studies have found that small businesses in PEO arrangements grow 7–9% faster, have employee turnover rates 10–14% lower, and are about 50% less likely to go out of business compared to their peers.
At the end of the day, a PEO doesn’t just make things easier. It gives small businesses the tools and backing they need to compete with larger companies without burning out or falling behind.
PEOs aren’t just a lifeline for small businesses. They’re also a big opportunity for the people those small businesses already trust: you.
Whether you’re a broker, CPA, or consultant, recommending the right PEO solution can make you look like a rockstar, keep your clients around longer, and even pad your bottom line:
The truth is, your clients are probably already being pitched PEO services by competitors who’d love to wedge themselves between you and your book of business. If you don’t bring the solution to the table, someone else will.
Done right, partnering with a PEO is a growth strategy. You expand the value you deliver without adding more work to your plate. The PEO handles the HR grind; you get to stand back and say, “See? That’s why you stick with me.”
At the end of the day, referral partners who embrace PEO solutions aren’t just selling insurance, crunching numbers, or offering compliance advice. They’re future-proofing their role as trusted advisors and turning referrals into long-term wins.
Not all PEOs are created equal. Some look great on paper but treat brokers as competition, not partners. Others overpromise and underdeliver, leaving you scrambling to fix the client relationship. If you’re going to put your reputation on the line by recommending a PEO, you need to know they’ll show up for both you and your clients.
So what should you look for?
That’s where BBSI separates itself from the pack.
It’s one thing to speak abstractly about the benefits a PEO like BBSI can offer, but real results are what matter. Take 360 Risk Partners, a workers’ comp–focused brokerage in Sacramento, as our case in point.
They’ve partnered with BBSI for over a decade and hit more than 90% mutual client retention. Why? Because BBSI delivered consistent, hands-on support for its high-risk clients and positioned itself as a preferred local PEO rather than just another vendor. For 360, that translated into happier clients and a stronger book of business. That’s real proof that BBSI doesn’t just support businesses, but also the advisors behind them.
PEO solutions are about giving small businesses the tools to thrive, and giving referral partners the chance to strengthen their client relationships while building new revenue streams. We’ve covered what PEOs do, why they matter to small business owners, and why they’re a smart play for brokers, CPAs, and advisors who want to protect and grow their book of business.
BBSI takes that one step further.
With a proven track record, hands-on local teams, and a partnership-first approach, BBSI delivers PEO solutions that work for your clients and for you. Ready to explore what a true referral partnership looks like? Contact your local BBSI representative today and start building a collaboration that helps everyone grow.