HRO or Human Resource Outsourcing wraps only a few HR functions, whereas PEO holds all the responsibility of HR as a co-employer.
For the unversed, HRO service providers help manage several tasks like HR tasks, benefits, payrolls, compliance, trainings, and some decision-making processes. They can scale their operations higher up, depending on the expansion of a company. Mostly bigger & established companies prefer this HR solution for ‘assistance’ regarding payroll and benefits management.
However, when a PEO Human Resource Management takes over the responsibility for small and medium businesses, they pursue the full range of HR responsibilities, including workers’ compensation, benefits, HR procurement and training, and so on. From managing health insurance and retirement payments to addressing legal issues and liabilities, their work schedule pans a wide range of services, helping SMBs save their valuable time and money.
Startups and new small businesses find it too daunting for HR management as a special unit. For SMBs, it’s quite essential to manage different operations for running a smooth and sound business. This where PEO payroll services and HR management comes into play. Right from hiring employees to managing their issues, the PEO service provider acknowledges a myriad of issues. They work as an extension of an SMB company, such as a co-employer.
Whether you are wondering if it’s right to hire a PEO broker or service provider or not, you must first consult a PEO about their array of services and put direct questionnaire for understanding their potential.
