HR Software vs. PEO Services

Two images, first is a person typing on a laptop, the second image is of a smiling person on a phone. Title - HR software vs. PEO Services

Are you considering investing in HR software to help take care of and organize your HR administrative tasks for your small business? Or, maybe you’re researching the difference between using online HR tools and other options like PEO companies?

The solution that best fits your business will depend on your goals.

First, define what you want your new HR solution to accomplish. To figure that out, start by asking yourself these questions:

  • Are you looking for a solution that will save you time? Is your problem related to the fact that you simply don’t have the time to take care of HR tasks?
  • Do you only need a little assistance in organizing payroll and tracking PTO for a couple of employees? Are you worried about the time it takes to manage that tracking system?
  • Are your goals focus related? Do you not want to have to worry about it at all? Or, maybe you’d like your HR staff to be able to focus on other more strategic HR tasks like recruiting and retention instead of administrative duties for which they are overqualified?
  • Do you worry about having the time to focus on your core business?
  • Are there other employee related solutions like workers’ comp insurance, benefits, liability, payroll, and others that you need to consider when choosing your next solution?

Once you’ve answered these questions and defined your goals related to HR for your business, you’re ready to start comparing solutions. In this article, we’ll focus on comparing HR software vs. PEO services.

HR Software

Let’s be honest, there are some very slick online HR tools and software out there these days that can make your life a lot easier. They are fun to use and can help your business reach your HR goals. Again, it depends on your goals. Before looking into the HR software solution, it’s critical you ask one question; do you have the time or dedicated staff to manage this software for your company? If your answer is no, we would strongly consider moving onto different solution options. HR software helps you organize and manage your HR administrative duties, but it does not do the work for you; therefore, it still requires that you do the work to manage these tasks. In this case, you’re not really letting go of those tasks, just gaining the tools to help you deal with and organize them.

HR software will seem less expensive vs. PEO companies. However, when looking at the price of this solution it is important to factor in the cost of your time and the staff it will take to properly leverage the tool. Not to mention the training related to compliance, and other investments it might require to properly implement. This might be right for you, it might not be.

PEO Services

PEO companies are another great option to consider. PEO services are like having your own experienced suite of Human Resource professionals waiting to help you at any time. Here are a few reasons why we believe a PEO service is the knock-out champion for your business needs.

We Do the Work, Not You

Perhaps the biggest difference between Employers Resource and other HR software focused firms is that we do the work. Many companies in the HR outsourcing industry have developed ways to put the HR work back on your lap using software that promises to do it all for you. But, business owners soon realize they just give you the tools to accomplish it. If YOU are still the one doing the work, this defeats the purpose of the solution.

Proceed with caution, some PEO companies are taking this approach. Make sure you ask the PEO how this looks, who does what, and what role their software plays and your role etc…

Our PEO Shopping Guide will help you make sure you know what you’re getting into.

We don’t just send you a login. We do the work so you have more time to focus on and grow your business.

A Simple, All-In-One Vendor

Instead of piecing together a slew of solutions and vendors, how would it feel to have them taken care of in one big bundle? No more working with multiple companies just to get your basic needs met. Everything from worker’s comp, payroll and benefits, to HR and compliance administration will be taken care of by one company, the PEO.

This solution is great for business owners who have multiple needs that they simply don’t have the time or resources to handle on their own. With Employers Resource you get over 50 solutions with just one payment.

PEO service areas include:

  • Payroll services
  • Human resources
  • Employee health and welfare benefits
  • Tax reporting and compliance
  • Workers’ compensation and safety programs
  • Specialized services like background checks, drug testing, mediation and arbitration


We make life very simple. We charge a per employee admin fee that covers all of our services. Under a large umbrella, our services cover everything related to employees.

Essentially, it’s like hiring a full HR department to work for you except we don’t take sick days, don’t ask for too much vacation, and don’t cause office drama! And, the liability for the work we do sits with us! We customize our services to meet your current business needs. You can get a free custom quote here.


The PEO company will assume much of the responsibilities that would otherwise remain on your shoulders with an online service. We do this through our co-employment model.

As your co-employer partner, since we share liability, we make it our personal responsibility to ensure compliance in your business. Our neck is on the line too! We are truly in it with you. And if you ever have an issue or questions about compliance, we have the HR support to help you.

Co-employment also means that your employees get access to large group benefit discounts so you can easily offer benefits like 401(k)s, dental, vision, EAP programs, life, and others. Again, all through one vendor, the PEO.

HR Software vs. PEO Services Summary

Online HR tools can be a great resource at an inexpensive rate, in the right situation. But, when you factor in the simplicity, focus, time savings, lower liability, large group discounts, and other benefits a PEO company offers, it can the best decision an employer can make.

To compare apples to apples, you would have to look at piecing together an HR software with EPLI insurance, HR compliance consultants, a workers’ comp carrier, benefits brokers and providers, a payroll vendor, accountant, ACA specialists, and more when comparing with a PEO solution.

If you want all these benefits wrapped into one package including the daily tasks lifted off your shoulders, a PEO service might be your best option. If you’d like more information on our services, we’d be happy to give you a free custom consultation.

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