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Choosing Between a PEO and an HRO

05/15/2017

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No matter the size of your company, Human Resources (HR) services are a must. Because the handling of HR tasks can demand much time and attention, many business owners will opt to outsource these services to a Professional Employer Organization (PEO) or Human Resources Outsourcing (HRO) agency. For companies looking to take advantage of enlisting the assistance of an HR company, it’s important to know the differences between the two and which is the best fit.

PEO Defined

A PEO is an excellent resource for businesses in need of HR management, employee benefits administration, payroll processing and tax filing, and compliance with laws and regulations. Taking an all-inclusive approach, a PEO can fully assume your HR organizational needs. Since PEOs typically manage the HR functions of several organizations, employees can be part of a larger pool, giving you lower benefits costs, and a lower cost per employee for all HR services.

From helping calculate the number of full-time employees to employee classifications to medical coverage reporting to tax filing, a PEO can offer solutions that help point small businesses toward success. View a list of the specific PEO services we provide at LBMC Employment Partners and download our free PEO guide here.

HRO Defined

Where a PEO takes on a full-service palette of HR tasks, an HRO offers a more “a la carte” approach, serving as the coordinator and manager of selected HR roles. With a convenient, single point of contact, an HRO can provide individual or blended services to meet a company’s HR needs. LBMC Employment Partners often combines HR, payroll, and brokering services in customizable ways, since no two businesses are the same.

An HRO can be the perfect solution for companies who need assistance with compromising situations or employee recruiting and onboarding. From employee handbooks and training to payroll and wage garnishments, here is a list of some of the specific HRO services offered by LBMC Employment Partners.

So how do you choose between a PEO and an HRO for your company needs? Our experts are happy to assess your needs and help you decide which solution is best. Contact us today to learn how we can help!