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Top 10 PEOs for Staffing companies
- 1. Best overall — ADP
- 2. Best for add-ons — Rippling
- 3. Best for industry customization — GMS
- 4. Best for nearshoring — Vensure
- 5. Best for HR outsourcing — Bambee
- 6. Best for HR strategy — GenesisHR
- 7. Best for customer service — Questo
- 8. Best for insurance — Resourcing Edge
- 9. Best for remote teams — Papaya Global
- 10. Best for international expansion — Atlas HXM
It may appear that staffing companies and Professional Employer Organizations (PEOs) are natural competitors. In many cases, however, PEO services can provide valuable capabilities to staffing companies, which can help them grow their business and expand into new markets.
Here we take a look at the top 10 PEOs for supporting staffing companies.
The similarities between PEOs and staffing companies
A staffing company specializes in providing a workforce to client companies. Often the employee starts off as an employee of the staffing agency, and over time transitions into a direct employee of the client company.
Like staffing companies, PEOs employ staff who work under the direction of a client company. A PEO, however, is a “co-employer” and not a “sole employer”. While the PEO is the employer for tax purposes and benefits packages, the corporate client or “workplace employer” is responsible for the employee on the job site. Some PEOs operate in a defined region (Regional PEOs), others cover the entire US (National PEOs), and others operate internationally (Global PEOs).
PEO services vary, but as co-employers, they all must ensure that employees are hired in a legally compliant way. They generally provide choices of employee benefits packages (often at more competitive rates than those offered to smaller employers), process payroll, and file taxes. Today most PEOs also offer an online platform or software system for employers and employees to track hours and time off, view benefits information, and track other pertinent information.
Many PEOs also offer more specialized services; software and other support systems for remote workers, recruitment services, consulting services, and more.
To read more about the relationship between PEOs and staffing companies in PEO vs Staffing Agency: How Do they Differ?
Why staffing companies use PEOs
PEOs can be useful for staffing companies for a number of reasons. In general, it is because they provide capabilities that the staffing company needs to grow, but does not wish to build in-house. We consider some of the specific reasons below:
- A quickly growing staffing company may work with a PEO to move into new markets. A regional staffing company that signed a national client, for instance, could work with a PEO in order to legally hire employees in all states.
- A staffing company may work with a PEO to offer more competitive benefits packages. This may be done to attract quality employees or to save costs.
- Most PEOs offer HR outsourcing services. This can be attractive to staffing companies that want to keep the size of their administrative office small, and would rather outsource administrative tasks to a third party instead of growing them internally. HR outsourcing services are available a la carte from many PEOs, which is useful for staffing companies that do not require Employer of Record services or PEO benefits packages.
- Many PEOs operate internationally (Global PEOs), which can be useful to staffing companies. A staffing company could also use a Global PEO to help a client establish offices overseas, or to tap into a global talent pool.
- A PEO can also help staffing companies move into the market for remote workers, whether they are based in the US or internationally. Many PEOs have specific services and software features that focus on the needs of remote workers and their employers.
- Other PEOs are known to provide quality consulting services, which can help a staffing company move into new industries or develop its HR department.
When considering PEO services, staffing companies should look for a provider that will help them achieve their business goals. These goals will help determine whether to choose a PEO based on their market reach, benefits packages, HR outsourcing services, or consulting capabilities.
We’ve brought together the top ten most popular PEOs among staffing companies, and listed the unique strengths and weaknesses of each, to help narrow down the search.
Best PEO overall
ADP
Key features
As one of the world’s largest PEOs, ADP is able to provide a wide range of services useful to staffing companies, such as consultants for a range of specific industries. They also provide Global PEO services and have a strong software platform (read more about this platform in our detailed breakdown of the ADP WorkforceNow solution).
Pros
- Insurance and benefits options from many of the largest providers in the country.
- Industry experts are on-hand to provide valuable advice and consulting.
Cons
- Extensive services may be more than necessary for staffing companies with strong internal capabilities.
Our verdict
ADP may be a good option for staffing companies planning a rapid expansion and wish to take advantage of ADPs wide-ranging insurance and benefits plans. Their consultation services will also be valuable for those moving into new labor markets.
Read more about ADP’s market-leading PEO solution in our 2023 review of ADP Totalsource.
Best for add-on services
Rippling
Key features
Rippling stands out for its customizability. Its various services (such as payroll processing, tax form filling and filing, COBRA and ACA administration, and many more) can be purchased for an additional fee at any time.
Pros
- A focus on remote and international teams will be useful for staffing companies who serve startups and tech companies.
- Wide range of services available as add-ons makes it simple to create custom and flexible packages.
Cons
- Costs can get relatively high as multiple services are added
Our verdict
Rippling is a great option for staffing companies that only need certain PEO services; i.e. a staffing company with a large accounting department that wishes to continue processing payroll on it’s own, but uses Rippling for Employer of Record services, insurance, and tax filing. Those who wish to hire out all services may save money with a PEO offering more comprehensive packages.
Read more about what Rippling has to offer in our detailed breakdown of Rippling’s products and services.
Best for industry customization
GMS
Key features
GMS prides itself on a high degree of customer service and is able to customize its offerings based on the needs of each client. GMS is a certified PEO catering to specific industries; transportation and trucking, janitorial, landscaping, technology, staffing, construction, home health care machinery, and light manufacturing.
Pros
- Customizable options for specific industries allow for focused services.
- GMS is geared towards staffing companies, and knows how to provide for their specific needs.
Cons
- No international staffing solutions available.
Our verdict
GMS is a good choice for staffing companies operating throughout the US, especially for its supported industries. Companies looking to provide staff internationally, however, will have to look elsewhere.
Best for nearshoring
Vensure HR
Key features
Vensure HR provides services tailored specifically to the staffing industry, and to companies nearshoring their operations throughout North America. This unique offering makes them especially useful for staffing companies serving manufacturing clients who wish to open or move operations throughout the region. In addition to providing outsourced HR, benefits administration, tax filing, and employer of record services, Vensure HR can also help with recruitment.
Pros
- Supports nearshoring throughout North America.
- Solutions tailored for the staffing industry.
- Recruitment services available.
Cons
- No international outsourcing services.
Verdict
Vensure HR is a trusted provider that serves large staffing companies throughout the US.. Their track record and ability to operate throughout North America will be very attractive to some businesses.
Best for HR outsourcing
Bambee
Key features
Some businesses want the HR services of a PEO, but may not want a full PEO relationship. This is where Bambee, an HR outsourcer servicing all 50 states, comes in. Each client is assigned an HR manager who is responsible for employee relations and problem-solving, crafting HR policy, onboarding and offboarding, and employee guidance. Packages are available for companies with 1-250+ employees, with prices posted directly on the website.
Pros
- Comprehensive HR solutions for all types of businesses.
- Transparent pricing makes comparison shopping easier.
- High rate of customer satisfaction.
Cons
- No EOR services.
- Service limited to 500 employees
Verdict
US-based staffing companies looking to outsource their HR functions will likely find Bambee to be a competitive and reliable partner. Companies looking for a full PEO solution will need to go elsewhere.
Best for HR strategy
GenesisHR
Key features
Genesis HR is a national PEO that also provides international services through partners. Genesis prides itself on providing a more complete HR service than their competitors, with strategic HR guidance, custom tools like employee handbooks, management training, and employee engagement tools.
Pros
- Custom HR management and strategy will be helpful to new entrepreneurs and fast-growing companies.
- Specialized services for remote teams and multi-national teams serve businesses hiring knowledge workers.
Cons
- Setup process can be difficult
Our verdict
Staffing companies looking for consultation on incorporating HR into their business growth strategy will appreciate all of the tools Genesis has to offer.
Best for customer service
Questco
Key features
Questco offers full PEO services throughout the United States. It provides a unique ‘pay as you go’ method for workers compensation premiums rather than a large deposit, which can help improve cash flow for clients. They also provide customized packages to meet employers’ unique needs.
Pros
- Rated Best in Client Satisfaction for HR services by Clearly Rated for 3 years.
Cons
- No specialized services for staffing companies, or remote workforces.
Our verdict
Questco provides a recognized, quality service with flexible options. Their range of benefits options is not as great as that of larger PEOs, though.
Best for insurance
Resourcing Edge
Key features
Resourcing Edge offers competitive PEO solutions such as payroll and benefits processing, compliance and risk management, a software portal, and recruiting. What sets them apart is their partnership with One Digital, one of the largest insurance and benefits brokers in the US.
Pros
- Wide range of competitive benefits packages from large providers.
Cons
- Not available throughout the entire US.
Our verdict
Staffing companies that wish to use specific benefits providers or have a range of choices will appreciate the many offerings available from Resourcing Edge. Their services are available in most, but not all, US States, which may make Resource Edge less attractive to large national staffing companies.
Best for remote teams
Papaya Global
Key features
Papaya Global focuses on international staffing needs; they process payroll and tax in 180 countries, provide international benefits packages, provide visa and immigration consultation, and assist with equity packages for international employees.
Pros
- An International-oriented PEO for global teams, it will serve startups, tech, and companies specializing in knowledge work well.
Cons
- May not be as competitive for staffing companies that supply exclusively to the US market.
Our verdict
Papaya Global is a great choice for staffing companies that provide executives to international companies or work with US-based companies looking to build a global team. Many of their services will be unnecessary for some markets, such as regionally based labor markets; for these, there are likely other, more competitive options.
Read more about what Papaya Global has to offer in our 2023 Papaya review.
Best for international expansion
Atlas HXM
Key features
Atlas HXM is a Global PEO with a key distinction: They are the direct, legal employer in their 160 countries of operation, meaning that, unlike many Global PEOs, they own their own subsidiaries rather than using contracted partners. Atlas also provides specialist consultation for some business sectors; financial services, venture capital, governmental, tech, non-profit, enterprise services, and life sciences.
Pros
- A direct employer globally through owned subsidiaries.
- Support for specific industries ensures a qualified and compliant workforce.
Cons
- No contractor-only feature
Our verdict
Atlas is a good choice for staffing companies providing employees to large employers internationally. For those hiring contract or temporary workers, it may be less attractive.
Read more about the pros and cons of Atlas in our 2023 Atlas HXM review.
PEOs for staffing companies — choose the best option for you
There are plenty of choices for staffing companies looking for a qualified PEO partner. Choosing the right one for your business will depend largely on your own goals and needs, but with the wide variety available in today’s PEO marketplace, there should be something for everybody. Most PEOs on this list provide a customizable service, so once you’ve found some potential partners from this list, contact them directly and see what kind of package they can put together for you.
FAQ
Staffing companies benefit from using PEOs because they allow them to outsource capabilities instead of developing them in-house. These capabilities may include payroll processing, Employer of Record services in new regions, international hiring capabilities, access to competitive benefits packages, and HR administration.
Not all staffing companies will necessarily benefit from using a PEO. A large regional staffing company with a quality HR team, competitive benefits packages, and no plans to expand into new regions or markets may not need any PEO services.
