Venture capitalists like PEOs (personnel employment organizations). Why? Because they enable rapidly growing enterprises to ramp up their hiring without getting bogged down in all the administrative tasks related to onboarding new employees. VCs like founders and co-founders to focus, focus, focus on running their start up. On what, pray tell? On products, production, services, customer service, sales, and marketing.
PEOs handle all the administrative details related to hiring. They provide interview forms, interview guidelines (what not to do), I-9 and W-4 forms, ready-made templates, HR and related training, and the list goes on. They also provide benefits and benefits administration which are key to enticing new employees. And when a company is growing rapidly, it’s doing all it can to hire people fast enough to cover demand. If the management team had to focus on more of the human resources than recruiting, interviewing and ensuring a good fit, how could they be sure they focused properly on the other areas necessary to support rapid expansion? Answer: They could not.
To read more on the subject, read the article Benefits of Personnel Employment Organizations (PEOs) .