PEO (Professional Employer Organization) and EOR (Employer of Record) both handle HR offload, but they fit different scenarios. PEO is typically a US domestic co-employment arrangement; EOR is typically used for international hiring or single-client sole-employer-of-record arrangements.
| PEO | EOR | |
|---|---|---|
| Geographic scope | Typically US-only | Global — common for hiring across borders |
| Employment relationship | Co-employment (shared with client) | Sole employer of record (EOR is the legal employer) |
| Use case | Domestic HR offload + benefits pool | International hiring without local entity setup |
| Worker count | Typically 5–500 W-2 employees | Often per-employee, no minimum |
| Pricing | PEPM, bundled | Per-employee monthly fee + compliance markup |
| Benefits | Master plan pooled across many clients | Per-country benefits, often baseline only |
PEO wins when: your hiring is US-only or US-primary, you have 10+ employees, you want benefits pool pricing.
EOR wins when: you're hiring internationally without local entities, you have a few employees in many countries, you need short-term contractor-to-employee conversions.
PEO and EOR aren't direct competitors — they serve different needs. Many companies use both: PEO for US W-2 workforce and EOR for international hires.
PEO wins when: your hiring is US-only or US-primary, you have 10+ employees, you want benefits pool pricing.
EOR wins when: you're hiring internationally without local entities, you have a few employees in many countries, you need short-term contractor-to-employee conversions.
PEO and EOR aren't direct competitors — they serve different needs. Many companies use both: PEO for US W-2 workforce and EOR for international hires.
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