Here is an interesting article written by Joe Cole, CEO of NAPEO. This particular excerpt talks about how PEOs give small businesses access to large group programs, helping them attract and retain talent:
PEOs can reduce its clients’ exposure to liability stemming from allegations of wrongful termination, discrimination, and sexual harassment by helping draft employee policy handbooks. In addition, PEOs frequently offer employment practices liability insurance that protects both the PEO and its clients.
This type of business process outsourcing helps small businesses attract and retain quality employees and minimize costly employee turnover. Because PEOs aggregate hundreds or even thousands of small businesses, they can create economies of scale in health insurance, workers compensation insurance, technology (PEOs often provide employee Web portals), and human resource support. PEOs level the playing field for small businesses by providing them with a large company human resources experience.