A PEO stands for a professional employer organization. It refers to a third-party PEO company that manages the human resource functions of small businesses. Apart from that, PEOs also ensure a company’s regulatory compliance with state and federal regulations. In this article, you will learn about the best PEO services online in 2024.
There are many PEOs available online. Hence, it can be difficult for a business owner to decide what is best for their business. Therefore, to help you find the right solution based on your budget and needs, we have compiled the best PEO services for your small business. Hence, to learn more about PEO services, read on through to the end of the article.
What Is A PEO?
The Forbes Advisor defines –
“A professional employer organization (PEO) provides outsourcing services for employee-related tasks, such as payroll and benefits administration, to small and midsize businesses (SMBs). PEOs essentially act as an HR department for their clients, relieving them of the burden of these time-consuming administrative tasks.”
Hence, by availing of those services, business owners can focus on business growth. Hence, they will not have to feel the pressure of HR tasks.
Apart from basic HR functions, PEOs also manage other tasks. Some of these include payroll processing, benefits administration, onboarding of new hires, ensuring training and paperwork, etc. In addition to that, PEOs also offer extensive reporting, which further ensures regulatory compliance.
What Are The Best PEO Services?
According to Business News Daily,
“PEO services are human resources solutions for small and midsize businesses that don’t have internal HR staff. A PEO company takes the place of an internal HR department by handling your payroll, employee benefits and other HR-related needs. PEO services can also be excellent resources for small businesses expanding into different states or countries that need help juggling different laws and compliance issues.”
Hence, while you are selecting a PEO service for your business, you will need to consider a variety of factors. You will need to understand that while some PEO companies offer services for international business, others offer services in specific areas related to HR functions.
The Best PEO Services That You Need To Know In 2024
According to Investopedia,
“In order to choose the best PEO for your business, you first must understand your company needs and determine whether a PEO is the right way to address them. The size of your business and your plans for future growth will likely be the two biggest factors you’ll have to weigh during this step.”
Here are some top PEO services that you will need to know about in 2024:
It can allow your small business to provide perks to employees that are mostly available to larger businesses. Apart from that, one of the best things about Justworks is that it offers you transparent and affordable pricing. Furthermore, there are many customer service options.
Good customer service
|Training is basic
Some services might seem basic
2. Paychex PEO
If you are looking for the best support, Paychex is one of the best ones and is a great autonomous support. Also, instead of working as a middleman, Paychex works directly with employees for HR support.
|Exceptional customer support
Provide onsite HR managers
Risk assessment and management reports are personalized
Access to a large number of online resources
|Lack of system updates
3. ADP TotalSource
Being one of the largest PEO providers internationally, ADP offers great customer service and flexibility, which works with companies of all sizes. Apart from top-rated HR programs, you will also be able to provide high-level tech and customer support.
|Self-service payroll options available for employees
Access to advanced HR tools and software systems
|Pricing is not transparent
Not always suitable for smaller companies
Trinet offers you services that are specific to your industry. Here, you will have access to experts that work specifically for your industry. However, if you are looking for singular services, this might not be a great option for your business.
|Access to experts
You will have customized contracts
You will get industry-specific support
Access to a large number of trends and insights
|You will not have access to all services, as you will get only service bundles
It offers services for only up to five employees
5. INFINITY HR
If your business is in its growth stage, INFINITI HR is one of the best ones to choose from. Furthermore, if your business works for franchises and hotel management, you will have access to extensive services. Apart from that, you will also get personalized services as you can pick and choose services for your custom bundle.
|Best services for franchises
You can customize the format
Access to recruitment support
Access to all services at the same time
|Does not work well on mobile apps
Not a good option for small businesses
Lack of market experience
Best PEO Services: Pros And Cons Of PEOs
The following are some of the major pros and cons of availing the services of a PEO:
Here are the major pros of professional employer organizations that you will benefit from:
- You will be able to improve your employee benefits
- PEOs can assist you with compliance with regulations
- You can focus on your business growth and save money on your HR functions
Here are a few cons of PEOs that you must be aware of:
- There will be less flexibility for your employees
- All PEOs do not guarantee compliance with regulations
- It can be hard to evaluate whether the PEO is worth your cost
Hope this article was helpful for you in giving you a better idea of the best PEO services available in 2024. However, before you choose a PEO service for your business, make sure you are aware of all the functions they perform. Furthermore, you should also see some customer reviews about the PEO company to have a better idea. Do you have more suggestions on PEO services? Consider sharing some with us in the comments section below.