What’s The Difference Between Employer of Record vs. PEO?

December 15, 2022

Employer of Record and Professional Employer Organization are both organizations that can be helpful for small businesses looking to expand and/or outsource. But what exactly do these companies do? And what’s the difference between them? Read on to learn more about Employer of Record vs. PEO.

What’s an Employer of Record?

An Employer of Record (EoR) is a company that acts as the legal employer of your employees. This company will usually handle some of the administrative work for your business. They will also usually handle contracts and HR matters for your employees. However, your business will still be in charge of daily operations, practices, and overall company culture.

What’s a Professional Employer Organization?

A Professional Employer Organization (PEO) is a company that works with you to provide HR benefits to your employees. PEOs will handle HR for various companies at once, which means you might get better insurance rates and/or plans when working with a PEO.

Employer of Record Vs. PEO

It can be hard to tell the difference between an Employer of Record vs. PEO, since they are both external companies that can provide you with HR services. The key difference is that an EoR acts essentially as a stand-in for your company, whereas a PEO is essentially your co-employer. This means that the PEO will share liabilities with you, while an EoR is meant to cover your risks. PEOs are also usually a more present force within your company, whereas EoRs will not play a large role in the daily lives of your employees.

Start With a Consultation

Both EoRs and PEOs are good options for those who want to outsource their HR services. However, one might be better for your company than the other. A consultation will help you choose what’s right for your business needs. Your consultant can also give you helpful tips for creating the best HR practices for your company’s future.

We Can Handle All of Your HR Needs

Whether you’re looking for an EoR or a PEO, Elevation HR is here to help. Our caring, dedicated HR professionals can help you manage your company effectively. Ready to learn more? Click the link above to contact our team today!

Recent Blogs

5 Easy Ways to Boost Your Employee Engagement Level

May 15, 2023160 Views

A good employee engagement level is crucial to any business. Luckily though, it is easier to boost engagement than you might think. In this article, we’ll give you 5 quick and easy ways to improve the engagement level in your workplace. 1- Listen To Your Employees One of the best ways to boost your employee […]

HR Outsourcing Costs: Can You Save Money By Outsourcing?

Apr 30, 2023301 Views

There are plenty of reasons that companies choose to outsource human resources. However, HR outsourcing costs are often one of the biggest factors. Outsourcing allows businesses to save money on human resources- without sacrificing quality. How is this possible? Below, we’ll explain how HR outsourcing costs can be significantly less than traditional HR. Only Hire […]

Retained Search Vs. Contingent Search: What’s Best For Your Hiring Needs?

Feb 28, 20231955 Views

When it comes to hiring employees, many companies turn to recruiters for help. Choosing the right type of recruitment is essential for an effective and stress-free experience. In this article, we’ll discuss the main ways that recruiters work- and how you can choose the right fit for your business. Retained Search Vs. Contingent Search Recruitment […]

Internal Hiring: Should Your Team Recruit Existing Employees?

Feb 15, 2023406 Views

Existing employees can be a great option for filling vacant roles within your company. However, internal hiring isn’t the best fit for all situations. So should you consider hiring existing employees? And if not, how can you find the right candidates? We’ll go over the pros and cons of internal hiring below. Why Hire Existing […]

Creating the Right HR Strategy- Tips for Startups

Jan 30, 20231498 Views

As a startup, you have countless things on your to-do list. Don’t let your HR strategy slip through the cracks! A good human resources plan will set you up for success as you grow your business. Saving you time, stress, and money down the line. Here’s how to create a great HR strategy for startups. […]