4 PEO Services That May Surprise You

Quick look: While professional employer organizations (PEOs) are well known for managing employee benefits and payroll, their capabilities go far beyond these core services. In honor of National PEO Week (May 17-23, 2026), discover four lesser-known ways a PEO can support your business, from recruiting to artificial intelligence (AI) policy development.

When most business leaders hear the term “PEO,” they think of payroll, benefits administration, and HR compliance. And while those core services can significantly reduce administrative burden, they only scratch the surface of what the right PEO partnership can offer.

National PEO Week, celebrated annually during the third week of May, is an ideal time to take a closer look at how these HR outsourcing solutions support businesses across the country. This year’s observance takes place May 17-23, and highlights the human resource (HR), payroll, benefits, and compliance support PEOs deliver to hundreds of thousands of SMBs collectively employing more than 4.5 million people nationwide.

If you’ve ever wondered if your company could benefit from a PEO, you’re not alone. Most SMB leaders start exploring PEOs when HR administration start pulling them away from running their business. Common indicators that a PEO could be a strong fit include:

• Difficulty keeping up with employment laws and regulations
• Challenges competing for talent with larger companies
• Mounting administrative burden
• Limited internal HR expertise

A PEO can help address those pain points by augmenting your existing team with specialized expertise, technology, and administrative support. Here are four valuable PEO services that often fly under the radar:

1. Recruiting services

Finding and hiring the right candidates has become increasingly complex, as SMBs compete for specialized skills in a rapidly evolving labor market.

That’s where a PEO’s recruiting capabilities can help. For example, ExtensisHR includes full-cycle recruiting services within its PEO solution at no additional cost. These services may include:

• Recruiting for most staff-level positions
• Dedicated recruiting specialists
• Job advertisement creation
• Candidate sourcing and screening
• Offer letter consultations
• And more

PEOs can also conduct salary benchmarking and compensation analysis, reviewing third-party market data to ensure each role is priced competitively.

Some PEOs also administer skills assessments such as sample work projects, job simulations, cognitive ability tests, and similar exercises, to help identify the strongest candidates. Business leaders and hiring managers retain full control over hiring decisions while benefiting from expert guidance throughout the process.

2. Professional training and development

Keeping your workforce engaged is also important, and PEOs support that by helping employers establish a variety of professional development programs:

Employee training and development

PEOs can administer a wide range of learning and development programs that strengthen both general professional skills and role-specific needs. Helping employees build new competencies or sharpen existing ones supports retention and deepens institutional knowledge.

Leadership coaching

Strong leadership is one of the most consistent predictors of business success. A PEO can reinforce that foundation by coaching leaders on communication, emotional intelligence, time management, and more. Some PEOs also provide clients access to a learning management system with on-demand content that can be tailored to specific company goals.

Compliance training

Employment regulations are always in flux, and staying current can be challenging. PEOs provide timely training on topics such as cybersecurity awareness and non-compete rule changes to help employers remain compliant and reduce risk.

Safety and risk management

Many PEOs offer workplace safety and claims management support. By reviewing your claims history, they help identify accident patterns and recurring workers’ compensation issues, then recommend strategies to help prevent future incidents. Services may include:

• Personalized claims management and state unemployment claim support
• Safety and loss control and prevention
• Return-to-work (RTW) programs
• OSHA and leave of absence (LOA) management

3. Workforce analytics and data

Decisions are only as good as the information behind them. PEOs can equip business leaders with the data they need to make more strategic people decisions.

Talent acquisition

Insights gathered through candidate and onboarding processes can reveal patterns that improve your recruiting strategy over time. For example, if many of your strongest hires attended the same university, it could be smart to attend career fairs there. Some PEOs also offer access to survey tools that capture employee feedback on the hiring experience, which may surface opportunities to refine your approach.

Employee retention and performance management

A PEO can equip SMBs with performance management systems that help identify high performers and uncover coaching opportunities. Recognizing strong contributors while proactively assisting those who may need additional support can reduce turnover and help spot department-level trends that signal broader areas for improvement.

Business forecasting

PEOs can also supply workforce data that supports staffing needs, future budgets, physical workspace requirements, and other variables that affect long-term planning.

4. Develop AI usage policies

Artificial intelligence has quickly become an operational staple. According to the Pew Research Center, more than 20% of U.S. workers now use AI as part of their jobs, a 31% year-over-year increase.

And while the Society for Human Resource Management (SHRM) 2026 State of AI in HR Report found that 92% of CHROs anticipate AI will be further woven into their workforce this year, just 68% of employers currently have a formal AI usage policy.

Building that governance structure can be challenging for smaller companies without dedicated legal or HR staff, but fortunately, a PEO’s experts can assist by:

• Developing AI usage policies that set clear expectations for how employees can and cannot use AI tools at work
• Updating employee handbooks to reflect AI guidelines, data privacy considerations, and appropriate use standards
• Monitoring evolving AI regulations at the local, state, and federal levels so SMBs stay ahead of compliance requirements
• Implementing AI-supported recruiting that pairs technological efficiency with human expertise, while adhering to all applicable laws

Deciding if you need a PEO and finding the right one

If HR responsibilities are consuming time that could be spent serving customers and growing your business, a PEO is worth a serious look.

That said, the experience at different PEOs can vary widely. Service models, technology, and customer support can vary significantly. Some providers offer highly responsive service teams and customizable benefits strategies, while others take a more standardized approach.

Additionally, with more than 500 PEOs operating across the U.S., it’s wise to look for an IRS Certified PEO (CPEO) with Employer Services Assurance Corporation (ESAC) accreditation and SOC 1 Type 2 certification. These credentials demonstrate financial integrity, operational control, and industry accountability.