Using a professional employer organization (PEO) is an easy way to outsource your HR needs. They’re increasingly common, with the National Association of PEOs estimating that 173,000 SMEs in the US alone use a PEO.
There are two main reasons why you might want to use a PEO. Small business owners often employ them to gain access to HR expertise such as payroll, creating benefit plans, or employee onboarding.
Another common use case is to hire one for access to specific expertise. For example, you could use a PEO to help hire staff abroad while staying compliant with all local regulations.
Choosing the best professional employer organization is just a case of finding one that meets your business needs. In this article, we’ll introduce ten of the best solutions currently available.
What do I look for when I select the best PEO solutions? Here’s a summary of the key services to look out for:
Payroll: Payroll administration is a central service offered by most PEOs. They take care of everything from making payments and managing PTO to generating pay stubs.
Global services: Many PEOs can act as a global Employer of Record (EOR) to allow you to hire employees in other countries. It’s perfect for hiring global talent remotely.
Compliance: Good PEOs ensure you stay compliant with all relevant employment regulations. It’s useful if you are hiring in countries or states with different regulations to where you are based.
Benefits: PEOs can help you create attractive benefits packages. They’ll help you with everything from commuter bonuses to life insurance and workers’ compensation plans.
Dashboard: Many of the PEO service providers on this list have software that allows you to manage the services these companies provide. These have self-service features that help you approve payroll, generate contracts, and view reports.
Recruiting: Some PEOs also offer recruiting services to help you find employees. This allows you to bring in new hires without any of the hassles.
Customer service: The best services offer access to expert help and HR consultants who can guide you through complex decisions.
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Overviews Of The 10 Best Professional Employer Organization
Here’s a brief description of each PEO vendor to showcase each tool’s best use case, some noteworthy features, and screenshots to give a snapshot of the interface.
Papaya Global lets you track pending payments, payment history, personal data, tax information, and more.
Papaya Global is a professional employer organization that provides an end-to-end global workforce management solution with cross-border payments in 160+ countries. The platform supports all employee options (payroll, EoR, contractors), integrates with popular work management tools, and uses smart technology to ensure compliance and eliminate errors. Papaya helps you simplify your international workforce management, eliminating spreadsheets and errors with their uniﬁed automated payroll solution. They boast 100% local compliance assured. Papaya creates a highly visible system for tracking payroll spending and real-time business intelligence. You can get insights on who your workers are—by country, cost centers and more; see how well you’re attracting and keeping top talent, and why they chose to leave; and clearly visualize where your company stands in equity of gender, age and pay—by department and seniority structure. Papaya costs from $20/employee/month and comes with a free trial.
Multiplier helps you manage payroll and administer benefits for your international employees in countries where you own legal entities.
Multiplier is a highly efficient PEO (Professional Employer Organization) that partners with organizations where they have their own entities, and manages full-time employees and independent contractors. They can help with administrative responsibilities such as payroll, benefits administration, expense reporting, leave, and timesheets management. Multiplier helps you expand in new markets 90% faster.
With Multiplier you can manage local entity payroll and international onboardings, generate compliant contracts in minutes, make payments in 120+ currencies, and run a 100% accurate multi-country payroll. They’ll also help you stay on top of legal compliance and changing local labor laws and regulations through their network of 100+ legal experts.
Multiplier’s fees are transparent and modular, and cost from $20/employee/month or $40/contractor/month. You can also request a free demo through their website.
OysterHR helps you hire, manage HR, and pay employees in over 180 countries. This lets you hire and onboard the talent you need to build your business, regardless of their location.
You manage the entire process from the Oyster platform. You can see information about your employees, check and approve payroll, and view your compliance. Meanwhile, the dashboard provides an overview of all the activity at your company.
The platform has useful onboarding features that help you create streamlined processes to get new hires up-to-speed wherever they are in the world. There’s no need to worry about region-specific taxes, regulations, or benefits.
Oyster has a free plan that lets you hire and pay up to two contractors. It’s perfect for small businesses or startups looking to experiment with international hiring. The business plan starts at $399 per employee per month. Contact the company for pricing for its contractor plan.
Get an overview of your global workforce in the Velocity Global dashboard.
Velocity Global is a PEO service that helps simplify international expansion. It claims to be able to help you get up and running in any country in the world in as little as 48 hours.
The HR administration services offered by the company cover everything from hiring employees to payroll, compliance, benefits packages, employee training, and risk mitigation. Choose whichever services you need, and the company will send a monthly invoice for services used.
One way the company stands out is through its global immigration services. These help you move international employees to different countries compliantly. Velocity Global’s team of experts takes care of all paperwork and visas and can even offer on-the-ground support to help with the transition.
Velocity Global doesn’t publicize pricing. You can contact the company for more information.
ADP offers time tracking features to ensure payroll is accurate.
ADP is a PEO that focuses on HR and payroll processing. It offers different solutions for businesses of various sizes, from small companies to enterprise-level businesses with over 1,000 employees. ADP is also certified by the Employer Services Assurance Corporation (ESAC), ensuring it meets rigorous IRS requirements.
The company offers flexible plans. You can choose from specific services, such as payroll and then add on HR services like onboarding, background checks, and HR forms and documents. Another helpful extra is the ability to create benefits policies with health insurance, workers comp insurance, vision insurance, and retirement plans.
Another useful ADP feature is automated time tracking—just ask employees to clock in on a computer or smartphone when they start and end work and have this reflected in your payroll. This ensures you always pay employees for the work they do. You can also use the tool to track and approve time-off requests.
Pricing depends on your business and the services you require. The website has a handy tool you can use to get an estimate. Just put in the number of employees you want to manage and the details of the types of services you need.
Employees can withdraw earned wages at any time through the CloudPay app.
CloudPay offers payroll and HR solutions to companies globally. Compliance features help with risk management by reducing the chances of your falling foul of local regulations. The tool also has features that let you automate administrative tasks to reduce manual work.
The most unique CloudPay feature is called Now. It allows your employees to withdraw wages they have already earned at a time that suits them, even before their scheduled payday. This happens from within the employee mobile app, and CloudPay automates the process, meaning it doesn’t result in extra work for your teams.
The company also offers analytics and reporting features. You can see the cost of payroll in each country you operate in and compare each one. You can also break expenses down by payment type to see payments, deductions, and bonuses in each country.
CloudPay doesn’t publicize pricing, but you can ask for more information on the website.
The Globalpedia contains essential information about international hiring regulations.
Globalization Partners is a PEO with extensive coverage that lets you hire employees in 187 countries and pay in 180 currencies. The company also offers a comprehensive guide of the laws and requirements of each country so you can make informed choices about where to hire from.
Working with Globalization Partners is easy. Just find the candidates you want to hire, and the company will onboard them and deal with payroll, benefits, and HR. You can track all this from within the company’s platform, which contains employee profiles, time off, and payroll.
Globalization Partners enables you to pay employees in 187 currencies. You can even pay employees with cryptocurrencies, although the legalities of this will depend on the laws and regulations of the country the employee works in.
Globalization Partners doesn’t publicize pricing, but you can request a quote on the website.
Pay full and part-time employees and contractors globally with remote.
Remote is a platform that helps you hire and manage remote employees globally. The company takes care of the entire employment process, from onboarding when they join your company to offboarding when they leave.
The company helps with HR management, benefits, and payroll. And it offers a suite of self-serve onboarding and management tools that employees and employers can use to get the most out of their experience.
Remote owns entities in every company it operates in. And it hires in-house legal and HR experts to ensure you are always up-to-date with regulations, even if they change. The service covers both full and part-time employees as well as the hiring of international contractors.
The company also supports your domestic HR needs. For example, the payroll tax compliance feature helps you navigate IRS requirements with employees inside and outside the U.S.
Companies can sign up to Remote and hire one employee for free. After this, there is a transparent pricing model of $349 per employee per month. You can also sign up for a free plan that allows you to pay contractors.
Create and send contracts then track their progress.
Deel helps companies compliantly hire, pay, and manage employees and contracts in 150 countries. It offers a full service that includes onboarding, contracts, payroll, and benefits administration.
Onboarding new hires is easy. You can use the platform to create and send custom contracts for all the countries you operate in. You can then follow the progress in the dashboard so you know exactly when the employee accepts the contract.
Meanwhile, payroll automation ensures that you pay your entire team, including contractors, with a single click each month. The system calculates local taxes for you and then pays your team via direct deposit to their bank account. And if you have a question about the service, Deel’s 24/7 customer support is always there to help.
The company doesn’t publicize pricing, but you can request more information on their website.
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The 10 Best Professional Employer Organization Summary
What Is A Professional Employer Organization (PEO)?
A professional employer organization (PEO) is a company that hires employees on behalf of businesses. It’s a way to outsource human resources functions that you don’t have the expertise for in your business.
When you use one of these services, you use a co-employment model. The PEO takes care of HR functions like payroll, employee benefits, tax filings, healthcare, and onboarding on behalf of the client company. Meanwhile, the employee works for you as a regular employee.
PEOs offer various service options that cover the entire employee lifecycle from recruitment to offboarding. Although, many focus on payroll and HR compliance.
How Can I Benefit From A PEO?
The main benefit of a PEO is that you get access to HR expertise without hiring HR professionals to perform these tasks. This reduces your risk of falling foul of employment law or regulations. If you have a small team, it can be far cheaper to use a PEO than to hire dedicated HR staff.
Many businesses also use PEOs when they want to hire employees abroad without actually opening offices in these areas. They hire staff via the PEOs legal entity in the foreign country to ensure you hire employees in a way that adheres to local regulations.
PEOs Are The Easiest Way To Global Expansion
The best PEO companies offer all the HR support you need to run your business. It lets you focus on the things you’re good at while ensuring you stay compliant with employment law.
To choose the right PEO, think about the HR tasks you need to outsource and look for one that meets these needs.
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