Compare & decide
One person, or a whole function?
An HR manager gives you one person's capacity and one person's expertise. A PEO gives you a team plus benefits access, but nobody in your hallway. Many growing companies eventually use both.
What each buys you
| Hire an HR manager | Join a PEO | |
|---|---|---|
| Capacity | One person, everything HR lands on them | A team across payroll, benefits, compliance, and safety |
| Expertise depth | One generalist's range | Specialists in each area |
| Benefits purchasing | Still shopping small-group at your size | Large-group plan access |
| On-site presence | Yes, in your culture every day | No, remote support |
| Coverage | PTO and turnover create gaps | Continuous |
| Cost shape | Salary, benefits, software, and their vendor stack | One fee that scales with headcount |
Common questions
Which one first?
Most companies under about a hundred employees get more coverage per dollar from the PEO first, then add an internal people lead for culture and management as they grow. The right order depends on where your pain is.
Does a PEO replace an HR person we already have?
No. It usually makes them dramatically more effective by taking administration off their plate and giving them specialist backup.