Updated: Jul 6
The following are some of the best professional employer organizations (PEOs) that will lease employees to small business owners. These PEO's take care of all administrative tasks like payroll, benefits enrollment, and management; giving you more time for running your own company!
What is a PEO?
With a PEO, you get the best of both worlds: peace of mind that your employees are being well-taken care of while not having to worry about hiring an entire team. With outsourcing all these responsibilities it’s easy for small businesses - who might only have one or two full-time positions open at any given moment – to focus on what they do best and let someone else handle everything else!
Working with a Professional Employer Organization (PEO) is ideal for small and mid-size businesses to add great talents to their teams and offer competitive employee benefits. The National Association of Professional Employer Organizations (NAPEO) believes that companies that partner with top PEO services report 10-14% lower employee turnover and a growth rate of 7-9%. The PEO handles all compensation, compliance, and payroll-related duties, while the client organization focuses mainly on providing a conducive work environment.
Why a PEO?
For many business owners, the advantages they receive from not hiring additional staff, multiple vendors, and consultants are enough. Still, there are also significant personal advantages with better employee benefits packages and the peace of mind knowing your business is protected with on-call HR support. Some even have industry-specific solutions or work in specialized industries.
Working with a professional employer organization is essentially a co-employment arrangement with a PEO services provider. However, many of the liabilities associated with this sort of partnership go to the PEO. For instance, when payroll taxes and salaries are not paid at the right time or filed incorrectly, the PEO services provider is usually held accountable for such discrepancies. If you’re thinking of choosing an HR services platform or looking to switch PEOs, this list will be of immense help to you.
What to Look for from a PEO Company
Different PEOs offer various services and benefits, but they all have one thing in common: protection. When choosing the right company for your business needs there's more than just what you need from them; it also comes down to how well these organizations fit with each individual employee’s lifestyle - whether that means providing health care coverage or allowing flexible work hours among other things. Here is a list of items to keep in mind so you can shortlist your best fit PEO:
If you're not sure what kind of PEO company to go with, then it's important that prices are varied among these companies. Some might charge less than others for small business owners who need help managing employees and their work schedules--perhaps even significantly so!
In order get quotes from all the potential vendors on your list consider how long term as well as short-term needs will be met by each option before picking just one vendor in this field since ultimately price may play a role when deciding which provider best suits one’s own personal situation.
PEO services will help you get the basics covered, but what about everything else? Do your employees have enough options for employee benefits so they're happy with their jobs and stay on board long-term. It's important to consider this carefully because retention rates affect how much money a PEO saves you.
Quality of Service
The question on every person's mind when they hear the word "PEO" is whether or not that organization has what it takes to provide quality service.
Can they provide me with human resource administrative services? Are their team members knowledgeable and able to help without delay or problems when it comes time for you make an appointment?
So before you get too excited about how great your new company will be, take some time and research other clients' experiences with them.
PEO companies vary tremendously in terms of size and capability. Some have a five or ten employee minimum, while others can accommodate more businesses per provider if they are partnerships with larger networks.
The pricing will also be affected by how many people your business employs; some small firms might find themselves paying too much for coverage due the limitations imposed on them when using certain PEO providers compared to other organizations, while others will cater specifically toward different types ranging from sole proprietorships all way up through multi million dollar corporations which is why we recommend doing research before choosing.
The most important thing in any company is customer service. When things go wrong with your PEO arrangement or the online tools you are using, it can get overly complicated and problematic if they aren’t resolved promptly - which means good old fashioned human intervention will always be a must have!
Online Platform and Self Service
It is important to take time when looking at the different platforms available. You need an online system that meets your needs and will work for both you AND your employees, so try taking a peek in what they use by checking out some of their user interface or features as well as a platform demo.
We've already covered a lot of different factors you should consider when searching for the best PEO provider. Next up: look at how many accreditations each company has so we can make sure our investment goes as planted without any unplanned risks or scandals later down road.
PEOs are more than just an HR company - they're your partner in business success. That's why you may want to consider finding a PEO that uses The Employer Services Assurance Corporation (ESAC). It’s made up of top attorneys and CPAs committed not only for integrity but also trust; other accreditation agencies include the IRS, Certification Institute or National Association Professional Employers Organizations (NAPEO).
While NAPEO is primarily focused on protecting its members from liability within this industry, it also requires an annual audit confirmation process that includes having financial statements reviewed.
Now for the list of our 10 top professional employer organization services companies in 2022:
Resourcing Edge has provided long-term strategies to help clients control costs by reducing risks, and payroll processing, human resources, and employee benefits since 2003. They take the time to work closely with companies to design a package that best fits the clients' specific needs.
If you’re on the lookout for human resources and PEO services provider that integrates the latest technologies in their services and processes, you would be right to choose Resourcing Edge. Operating with decades of experience, Resourcing Edge prides itself as an industry leader in human capital management solutions.
With Resourcing Edge, you can get a robust level of services ranging from $90-$115 per month for your employees. No pricing is listed on the website, but our research showed this price includes dedicated HR consulting, safety support, training, and benefits administration!
Top services by Resourcing Edge include:
Single point of contact
Specialists in every department
Development of employee handbooks
Employee relations and HR consulting
Job description development
Unemployment claims management
Assistance with hiring and termination
Verification of employment
EEOC claims management
Federal and state compliance management
Performance management monitoring
401k retirement plans
Customer Reviews, Ratings, and Testimonials
Customer appraisals of Resourcing Edge are pretty impressive. Currently, the company offers a fully insured “pay-as-you-go” workers’ compensation coverage to all client employees. It is the third-largest privately held PEO services company in the U.S. Based on customer reviews on Glassdoor, about 60% of employees working or that have worked with Resourcing Edge are willing to refer their friends to the organizations.
Multiple partners that provide a more comprehensive range of coverage solutions
Excellent and personalized customer service
Strong orientation on HR services, training, and safety options, including on-site safety review, online safety training, and OSHA compliance assistance
Large selection of benefits and options
No industry or vertical specialization
Employee self-service needs improvement
Training and development is not included in base price
Oasis is a Paychex company specializing in providing PEO services to startups and small companies. Oasis provides outsourced human resources and payroll management services. They offer à la carte options for cost savings, with extensive training resources to help you get the most out of your employees' benefits package while still maintaining an organized work environment!
The Client Services Team at Oasis comprises senior HR Generalists who can also provide general advice on employee benefits strategies with an emphasis placed heavily upon health care reform compliance for small businesses due to federal regulations passed under the ACA (Affordable Care Act).
The conversation with the company is not limited to just one aspect of the business. The HR team supports businesses on their growth goals and strategy, employee relations, and performance management needs; they also deliver updates that support these areas or provide information about compliance regulations for employers who want to keep up-to-date with what matters to their business.
They also provide a payroll management contact for each client, who assists with processing wages and taxes with accurate records of employee hours. They can answer basic questions about how it all works and generate custom reports that will be easy to access your data.
Oasis Outsourcing offers various services at prices that range from $100 to $125 per month for each employee. The company doesn't list its rates on the website, but our research showed that this price includes dedicated HR consulting and considerable workforce support.
Other services offered include:
Group health insurance plans
Section 125 plans
Automated benefits record-keeping
Payroll tax administration
Online employee self-service
Customer Reviews, Ratings, and Testimonials
Paychex (a major payroll, and HR outsourcing company) is the parent company of Oasis outsourcing, which provides Oasis support to provide a wider range of HR and PEO services to its customers. Although some customers have compliance about not getting adequate support, you might want to confirm this before choosing their services.
Offers you options to invest in your people and culture
Comprehensive employee risk management
Keeps you updated on current federal and state employment laws
No live chat option for ease of communication
Some customers noted a long, bureaucratic structure that makes it challenging to get quick feedback
A leading provider dedicated exclusively to handling human resource needs within entrepreneurial environments since 1997 and understands that human resources are a vital department in every company. Furthermore, CoAdvantage has found its niche in helping small business owners.
They specialize in providing payroll processing for over 4500 clients and 90,000+ worksite employees across the country with customized HR management solutions, which allows their clients to focus on other essential aspects of running an enterprise. They can do this because of the professional advice from the CoAdvantage team of HR and compliance experts.
The company's web-based HR portal backs this. CoAdvantage also utilizes regional teams, which gives you proximity support that is not always available from other PEO services companies.
CoAdvantage offers excellent value for money with their range of services, which is why they're the company we always recommend when someone needs help managing staff or growing an organization. Our research showed this price ($115-$150 per employee) includes dedicated HR consulting and considerable workforce support - perfect if you want expert advice without breaking your bank!
Specific services offered by CoAdvantage include:
CoAdQuantum HR technology
Payroll tax processing, including FICA, FUTA, and SUTA
Fortune 500 benefits
Risk management and compliance services
Employee and manager self-service
Time and attendance systems
401k retirement plans
Customer Reviews, Ratings, and Testimonials
Although primarily based in Florida, CoAdvantage manages over 4500 clients spread all over the U.S. and serves more than 90,000 employees that have been working with client companies for decades. Both small and big businesses use CoAdvantage for their robust services and reliable customer support. Generally, CoAdvantage is perceived as one of the best PEO services out there.
Excellent payroll processing services
CoAdvantage prides itself as a company strongly driven by customer experience
Provides you with consolidated online portals for both employers and employees
Unique team-building services to improve employee engagement
Lacks industry-specific options
Limited service offers. It may be best for small companies that do not require exceptional or specialized benefits
Paychex Business Solutions
Paychex PEO is one of the biggest names in the PEO industry. The company was founded in 1971 to make payroll outsourcing easy and affordable for small businesses. Today, Paychex has more than 14,000 employees with 561,000 small to medium-sized clients nationwide! They offer a customizable PEO services program that is fully staffed by dedicated professionals assigned specifically to your needs.
With the Paychex Flex platform, HR professionals can manage their company's entire employee lifecycle from one dashboard. The system is easy for new hires to navigate as they complete onboarding, update personal information, or enroll in benefits.