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The human resource department plays an important role within many organizations; however, many small businesses may lack the necessary skills or resources to implement such a team. As a small organization, with only a few employees, it may be possible to manage the responsibilities of an HR department, but as the organization grows more complex and HR becomes more challenging, companies may choose to outsource HR instead. Still, all HR partners are not created equal. A small company may turn to a professional employer organization (PEO) to manage HR responsibilities, but as it grows, may realize a PEO transition is necessary to meet evolving HR requirements.