PEO, ASO, and EOR get pitched as interchangeable outsourcing options. They're not — each shifts a different set of costs, risks, and control levers, and the right structure is a major value-creation lever for mid-market portfolio companies.
Bundled HR, payroll, and benefits under a co-employment model — typically the fastest path to lower workers' comp rates and lower benefits costs, plus built-in compliance support. Best fit for smaller portfolio companies without in-house HR infrastructure.
HR and payroll administration handled externally, with benefits carved out separately — more control over cost and carrier choice than a PEO, at the expense of some bundled-rate leverage. Best fit for companies that want administrative relief without giving up benefits control.
The EOR becomes the legal employer, enabling rapid hiring, multi-state compliance, and clean contractor-to-employee conversion. Best fit for fast-scaling portfolio companies expanding into new states or converting a 1099 workforce.
We'll map each portfolio company against PEO, ASO, and EOR fit — and quantify the cost delta.
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