Service model comparison
PEO vs. HR consultant
A PEO absorbs recurring administration and risk through co-employment; a consultant advises and implements while you stay the employer.
PEO
- Co-employment arrangement with shared employer responsibilities
- Runs payroll, benefits administration, and risk services directly
- Recurring fee per employee or percentage of payroll
- Best fit when administration and benefits buying power are the problem
HR consultant
- Advisory and project work — no co-employment
- You keep your payroll, plans, carriers, and employer registrations
- Priced by project or by retainer hours
- Best fit when judgment, policy, or specific projects are the problem
How should you make the decision?
Start with the work your company needs performed, the decisions that require internal ownership, the amount of day-to-day capacity required, and the risks of changing models. Then ask providers to map their scope against that operating picture.
A model is not a quality guarantee. Service teams, implementation, systems, pricing, and contract terms differ materially within every category.