As an HR professional, manager, or business owner, you’re likely pressed for time most days.
Whether it’s dealing with a payroll error, administering company benefits, or managing employee onboarding, your list of to-do’s is long — and getting longer.
But what if there was a way to handle human resource (HR) tasks without drowning in countless to-do’s?
There is. It’s called using a Professional Employer Organization or a PEO company.
A PEO company can lighten your HR task load like nothing else.
From interviewing and hiring to going over dental and vision plans, a PEO company can take care of any HR tasks you need.
Let’s take a closer look at what a PEO company is and what it does. We’ll also quickly review seven of the best PEO companies around.
What’s a PEO company, and what does it do?
When you’re planning to start a company, one of the first things you’ll want to do is connect with other professionals who can help you thrive. Partnering with a PEO company is like partnering with a team of HR experts who will give you advice and handle certain tasks you’re too busy for.
But what exactly is a PEO company?
A PEO company is a professional employer organization you enter into a co-employment agreement with so they can take care of payroll and other common HR tasks for you.
Let’s take a look at some common services PEO companies offer.
Interviewing, hiring, onboarding
Knowing when and who to hire may be one of the most difficult choices new business owners make. All business owners want to hire the perfect golden team that will eventually shape their business. Business owners don’t have to stress about vetting candidates, interviewing, hiring, or onboarding with a PEO company on board.
Outsourcing
First-time business owners may not have the resources they need to figure out branding, how to scale up, or who to outsource to. Certain PEO companies offer outsourcing services to help entrepreneurs figure out when to hire a freelancer versus a contractor or other resources like knowing which graphic design agency to use.
Benefits
While PEO companies offer a wide array of services, the most common include processing benefits such as workers’ comp, PTO, payroll, unemployment benefits, retirement benefits, and health benefits like dental, vision, and health insurance.
Tools
From providing outsourced team members with efficient tools like chatbots to helping them focus on important tasks to giving employees access to productivity platforms, the sky’s the limit as far as what tools PEO companies can offer.
Payroll processing
Whether it’s matching up invoices to work orders or automating hourly pay and contract pay, PEO companies take care of all your payroll processing needs.
Other tasks
PEO companies come in all shapes and sizes. While some mainly offer basic services like payroll processing and administering company benefits, others offer unique services such as employee training, personal development courses, and team-building services.
7 best PEO companies: A brief summary
Here’s a brief breakdown of seven of the best PEO companies around.
1. CoAdvantage
Pros:
Operating under Morgan Stanley, CoAdvantage does business in all 50 states.
In addition to offering standard services like benefits administration and payroll management, CoAdvantage is known for having some of the best team-building tools and services around.
Its team of experts will help you locate top performers and potential candidates for new roles at your company.
Cons:
CoAdvantage is known for its team-building services and may rank lower in other specialized areas.
2. Amplify PEO
Pros:
Amplify PEO works with businesses of all industries and sizes. Beyond offering standard services like payroll processing and HR administration, it also offers benefits options like medical, dental, vision, and competitive retirement benefits.
If your concern is risk management and workplace safety, Amplify PEO offers safety reviews and workers’ compensation support so you can focus on more important tasks.
Its most attractive qualities include delivering excellent customer service and taking each individual business’ needs into account before formulating a plan. Although complaints about its service team are rare, a real human agent will work to find a solution you’re happy with if you ever do run into a problem.
Cons:
Amplify PEO may not be a great match for your business if you’re interested in specialized features.
3. ADP TotalSource
Pros:
ADP TotalSource works with businesses in all industries and sizes. It offers talent management, human resources, risk assessment, and employee benefits like dental, vision, medical, and 401(k) plans.
Possibly one of the best features ADP has is its easy-to-use web dashboard and mobile app that accesses and manages payroll, recruiting, and benefits.
ADP also offers renowned customer service. When employees have questions about benefits, pay, or another HR topic, they can contact an ADP representative directly.
ADP also offers industry-specific solutions for businesses in:
- Manufacturing
- Healthcare
- Restaurant and hospitality
- Government and education
- Construction
- Nonprofit
- Financial services
- Professional and technical services
Cons:
Since ADP is a major company, you might feel like your small business is getting lost in the shuffle.
4. Justworks
Pros:
Justworks is a great match for businesses without an in-house HR department. From HR automation software to enterprise-grade benefits to dedicated 24/7 hands-on expert support, Justworks offers everything you’d need in a PEO at a reasonable price.
Cons:
Although Justworks offers payroll processing and core HR functions, you’ll need to purchase health and retirement benefits as an add-on if you need them.
5. Oasis Outsourcing
Pros:
Oasis Outsourcing is a flexible PEO provider that offers a comprehensive line of services such as risk management, technology solutions, payroll, employee benefits, and human resources.
Oasis also assists with setting up employee retirement plans and is known for giving startups the special attention they need.
Oasis offers industry-specific solutions for businesses in:
- Education
- Private equity
- Retail
- Property management
- Banking
- Hotels
- Architecture
- Restaurants
- Legal
- Financial services
Cons:
Since Oasis requires a one-year contract, they may not be a good fit for your business if you’re looking for a month-to-month commitment. It does, however, offer a 90-day money-back guarantee window.
6. Paychex
Pros:
Paychex allows businesses to supplement an in-house HR team with only the services they need. Business owners can start with one or two services and add more as they scale up — making this a perfect option for growing businesses.
With that said, businesses can still opt for a full-service option if it makes sense to do so. Paychex is unique because it assigns each business a dedicated HR professional and offers outsourced office management services.
Paychex offers businesses all of the standard HR options from group health insurance and benefits accounts to unemployment insurance and payroll processing.
Cons:
Paychex’s interface appears a bit outdated and not as user-friendly as other options like ADP.
7. VensureHR
Pros:
VensureHR specializes in small businesses and will work with just about any company — no matter how small.
Its services include everything you’d expect from a PEO with options to adjust the exact parameters of benefits packages. It also offers pay-as-you-go options for an array of benefits and services.
Cons:
VensureHR may not be the right fit for larger businesses looking for HR services, HR software, or HR outsourcing.
Wrap up
A PEO company can lighten your HR task load as nothing else will.
From interviewing and hiring to administering company benefits and retirement plans, a PEO company can take care of any HR tasks your business needs.
To find the best PEO company for your needs, be sure to take a close look at each company on this list. You can also set up an appointment with each to ask questions and go over plan options.
Ioana is a freelance content writer and SEO strategist for B2B and B2C brands specializing in Business, Marketing, Tech, and Mental Health. Born in Transylvania, raised in Texas, and transplanted to Barcelona, Ioana’s next move is taking her to sunny Mexico.