HOW DO I NAVIGATE TODAY’S HR OUTSOURCING MARKETPLACE?

Long gone are the days when the obvious or the only apparent choice was ADP for your company’s HR outsourcing needs.

Now that there are more than 500 PEOs across the US and many more Non-PEO solutions, things are not so simple anymore.

The good news is that there are more players in this space giving you access to lower pricing and better choices.

The bad news with so many options is the increasing difficulty it creates to figure out where to start and how to make sure you are selecting the right provider.

Starting Point

Narrowing down your choices is the best route to take to figure out which PEO or non-PEO will handle your Payroll, Worker’s Compensation, Employee Benefits, and HR Administration.

The best place to start is to try and determine whether your needs are best met within a PEO structure or outside of it.

If you are tech-savvy and like to do things yourself perhaps a Non-PEO solution is perfectly adequate for you.

Companies that have always done everything internally can also benefit from a non-PEO solution especially if they are not willing to initially allocate financial resources to an outside provider.

If you are less interested in dealing with HR issues, increasing regulation, benefits, and payroll, and want a provider to co-share the responsibility then a Professional Employer Organization (PEO) is more appropriate.

Non-PEO Solutions

Non-PEO solutions are HR and payroll platforms. You pay for the software, and sometimes for added service. Your company stays the only employer of your staff.

When this article was first written in 2015, three names stood out: Zenefits, Namely and ZenPayroll, now called Gusto. All three have changed since then.

These platforms are built around their technology. On their own, they do not co-employ your staff. Your company keeps the legal duty to comply with federal, state and local labor laws.

Your team runs the platform in-house. Payroll, benefits enrollment and HR records can all go through it. Health insurance and workers' compensation are your own company's policies, bought through a broker.

One thing is new since 2015: many providers now sell more than one model. The same company may offer HR software, an administrative services (ASO) plan and a PEO. Only the PEO creates co-employment. Ask each provider which model you are being quoted.

Rippling, for example, sells an HR platform and also offers a PEO that customers can opt into.

Zenefits: Now Part of TriNet

TriNet, a publicly traded PEO, bought Zenefits in February 2022. TriNet no longer markets a product under the Zenefits name, and zenefits.com now points to trinet.com.

TriNet now sells two models. TriNet PEO is its co-employment offering. HR Plus is its administrative services (ASO) offering: HR software plus support for HR, payroll and payroll tax. In 2025 TriNet moved its former software-only customers toward HR Plus.

TriNet's annual report says its ASO services do not include co-employment or access to TriNet's sponsored health plans. HR Plus is priced per employee per month. TriNet quotes the rate based on company size and the services needed.

Namely: Now Part of Vensure

Namely started in New York in 2012 as an HR platform. In 2022 it merged into the group formed by Vensure Employer Services and PrismHR. Vensure also runs a large PEO business.

Namely sells HR, payroll, time tracking and benefits administration software for midsized companies. It also offers managed payroll, benefits and HR services on top of the software. It is sold as software and services, not as a PEO.

Namely prices per employee per month. Larger packages are quoted based on the modules and services a company needs.

Gusto: Payroll, Benefits and HR for Small Businesses

ZenPayroll changed its name to Gusto in 2015. It is still privately owned. In April 2026 it said more than 500,000 small businesses use it.

Gusto sells payroll, benefits administration, HR tools and time tracking. It can act as a company's health insurance broker, or connect a broker the company already uses. It added 401(k) plans by buying Guideline, a deal completed in 2025.

Gusto publishes its prices. Plans are priced as a monthly base fee plus a fee per person. These plans are software and service; your company stays the employer.

If you would rather hand off more of your payroll, workers' compensation, employee benefits and HR administration, a PEO may suit you better.

For a list of PEO benefits read our article Top 5 Reasons to use a PEOs.

PEO Solutions

The key difference between a non-PEO HR solution, such as TriNet HR Plus, Namely or Gusto's standard plans, and a PEO is co-employment.

When you partner with a PEO, a co-employment relationship is created. The PEO takes over payroll tax reporting for your employees and shares certain employer responsibilities with you.

This is important because through this relationship you gain access to the employee benefits of the PEO and other lines of insurance as well as the PEO’s worker’s compensation coverage.

Many if not most of our clients cover all PEO fees with the savings generated in these two areas and have in turn lowered their bottom line costs by choosing to partner with one.

PEOs when co-employed with your company will then assume the co-shared responsibility of keeping you compliant with all federal, state, and local labor laws.

Non-PEO solutions do not offer this level of protection, handholding, or access to their master health insurance plans or worker’s compensation policy.

Selecting a Provider

Picking one of these options is harder than it was in 2015. Many providers now sell software, ASO and PEO plans side by side, and the wrong choice can be costly.

When the “mud” hits the fan, who do you want next to you in the trenches?

It is highly recommended you seek expert advice when evaluating your next HR partner.

Not sure whether you need a PEO or just HR software? Tell us about your company and we'll say which fits. Get a free consultation →