Is a PEO the same as a Staffing Agency?

October 30, 2023
1642 Views

Houston is a hub of businesses and corporate employment. It offers every individual a chance to make their dreams come true. This gives a rise in need for HR solutions to cater to the needs of employers and as well as the employees.

Staffing agency vs. PEO ─ which is which? In Houston, TX PEO or also known as Professional Employer Organization are becoming prominent day-by-day. And so, is the staffing agencies. How do we know which of the two is best for our company and whether the two are different or same?

Here is what you need to know about PEO and staffing agency.

What does PEO mean?

PEO is the short form of Professional Employer Organization. Understand it this way: A PEO is a firm that provides comprehensive HR solutions for businesses. When an organization collaborates with a PEO, they enter into a co-employment arrangement.

This means that the PEO becomes the employer of record for certain HR and administrative functions, including payroll, benefits administration, and compliance. The client company retains control over its day-to-day operations and the work performed by its employees.

Moreover, for businesses in Houston, TX professional employer organizations are quite beneficial even if it is a small-scale business or a medium-sized enterprise.

What is a Staffing Agency?

Staffing agency may be similar in its operations with PEO, but it is quite distinct from it. It specializes in connecting businesses with temporary or permanent employees. Staffing agencies have a pool of employees having various skillset who come from different backgrounds.

Therefore, these agencies help these individuals to get inducted in companies and organizations that well-meet their expertise and qualifications. To understand staffing agencies better, consider them as intermediaries who match job seekers with employers based on their specific requirements.

Key Points of Difference

Although, similar when it comes to the dynamics of the employment solution, flexibility and HR expertise, PEO and staffing agencies differ in ways such as the extent of engagement within the operations, lapse of time and HR services. This list includes and is not limited to the following.

  1. PEOs often provide access to cost-effective employee benefits through their larger client pool. Staffing agencies do not typically offer benefits to placed employees.
  2. In a PEO arrangement, employees are technically co-employed by both the client company and the PEO. In contrast, staffing agency employees are solely employed by the client company.
  3. PEOs involve in co-employment, sharing responsibilities for HR functions with the client company. However, staffing agencies, facilitate temporary or permanent hires.
  4. PEOs offer a wide range of HR services, including payroll, benefits administration, compliance, and risk management. Staffing agencies primarily focus on recruitment and placement.
  5. PEOs are typically engaged in long-term relationships with their clients, whereas staffing agencies often deal with short-term staffing needs.

Check this Blog: https://elevationhr.com/why-would-a-business-use-a-peo/

The Verdict!

Whether you choose PEO or a staffing agency, it is only beneficial for your business to find the right firm that is known for providing with just the exceptional HR solutions in Houston, TX. Let experts at Elevation HR be the ones to handle it for you. Dial (281) 353 – 8847 to connect with them today.

Recent Blogs

What Kind Of Education Do You Need To Work In HR?

Feb 15, 2024154 Views

There are many degrees that can prepare you to work in a HR department or position. Understanding the various HR degrees can help you determine your goal accordingly to choose the right program. While some colleges and universities offer a specific and dedicated undergraduate degree in human resources. Some business, social science or management degrees […]

A Quick Interview Guide for Securing HR Position

Jan 30, 2024481 Views

Acing any interview requires preparation and knowledge about the subject. Whether it is sales, marketing or HR, in order for your interview to go well, you must come prepared for questions related to the company and how you can add value for them. With the right balance of convincing and confidence, no interview is difficult. […]

Types Of Hr Costs And How To Reduce Them

Jan 15, 2024356 Views

A human resource department is one of the main constituents of a successful business. It involves overseeing internal and external business-related matters that include maintaining the culture and wellbeing of the company. Some of the important HR tasks include recruiting, onboarding, orientations, maintaining payrolls, retention, training, employee benefits – making up for an overall office […]

At What Point Does A Company Need Hr?

Dec 30, 2023575 Views

Human resource is generally a department dedicated to oversee all operations related to recruiting, payroll management, workplace policies and other operations related to general employee wellness. It is most commonly seen as a properly functioning entity in larger corporations who operate on a larger scale in Houston TX. While small businesses in Houston TX may […]

What Is A Peo?

Dec 15, 2023508 Views

PEO stands for professional employer organization. It is a corporate company or agency that is hired to provide HR solutions to small and medium scale businesses. Houston remaining to be the hub for business activities, PEO in Houston TX remains to be an un-stifled and ever-expanding concept dedicated to serving the needs of business related […]

Archives

Skip to content