The main difference between PEO companies and internal HR is in handling employment responsibilities and resources.
- PEO Companies: Act as co-employers, managing payroll, benefits, compliance, and HR administration for client companies. This partnership allows small and mid-sized businesses to access resources typically reserved for larger firms.
- Internal HR: Fully managed within the organization, allowing for tailored HR practices aligned with company culture. However, internal HR teams may face resource constraints that PEOs can help overcome.
For more details, explore this PEO Services guide.