Phenoxyethanol is a versatile preservative effective against both Gram negative and Gram positive bacteria as well as yeasts. It is not sufficient as a stand alone preservative due the fact that it is not effective against funghi and so must be used in combination with an anti-fungal agent. Potassium sorbate or Sodium benzoate can be useful in this regard but only in formulations with a low pH.
Phenoxyethanol is regarded as safe when used at 1% or less in a formulation though it can be a mild irritant to the eyes and so should be handled with caution. Interestingly, it also acts as a fixative for fragrances and so helps to protect the smell of your product as well. It is soluble in both water and oil and is inactivated by ethoxylated surfactants.