FAQ

What is the difference between HR outsourcing and a PEO?

Human Resources outsourcing (HRO) is when you contract with an independent provider to handle some or all of your HR functions. You can contract for a variety of services, from basic HR to more robust and strategic offerings. HRO companies typically allow clients to scale and customize their services according to their needs.

A PEO is a co-employment model where the PEO becomes the employer of record for your employees, and assumes certain employer responsibilities on your behalf. A PEO administers HR functions and frees you to focus on your business. This can be a great help to small and mid-sized, newer, or growing businesses.

ADP Editorial Team

ADP Editorial Team The ADP editorial team is comprised of human resource professionals with extensive experience solving complex HR challenges for businesses of all sizes.

ADP TotalSource®


Robert Cooper,
President & CEO
Johnson, Morgan & White

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