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A PEO or co-employment arrangement involves all or a significant number of the client's existing worksite employees in a long-term, non-project related, employment relationship. LandrumHR brings services to the client, including the management of human resources, employee benefits, payroll and worker's compensation. LandrumHR assumes employer responsibility for employment tax, benefit plans and provides human resources advice and recommendations at the request of the client. Through the use of a PEO relationship, client companies make a long-term investment in their workers, because in most cases, the PEO provides access to health insurance, retirement savings plans, and other critical employee benefits for their worksite employees. If a PEO relationship is terminated, the co-employees will cease to work for Landrum but will continue as employees of the client.

Some older statutes governing PEOs still use the leasing terminology.