PEO Alternatives in California: Finding the Right HR Fit
PEO isn't right for everyone. Here are the alternatives California businesses choose—and how to pick the one that fits your risk and cost profile.
- ASO: Administration without co-employment
- HRO: Strategic HR consulting and fractional leadership
- HR Software: Self-service platforms for DIY businesses
- In-House HR: Building your own team
- Take the HR Risk Score to find your best fit
Compare Your Options
Each model has different strengths. Here's how to choose the right one for your business.
ASO (Administrative Services Organization)
Businesses wanting PEO-level support without co-employment
Pros
- Full HR administration and payroll
- Keep your existing benefits and workers' comp
- Dedicated HR Business Partner
- California compliance monitoring
- Lower cost than PEO
Tradeoffs
- No co-employment liability sharing
- Benefits may cost more on your own
- Must manage benefit relationships
Best When...
- You have great benefits and want to keep them
- Control matters more than liability sharing
- You want to start smaller and scale
HRO (HR Consulting)
Businesses with some HR capacity wanting expert guidance
Pros
- Fractional HR leadership
- Strategic expertise without full-time cost
- Project-based or ongoing retainer
- Works with your existing team
Tradeoffs
- Not a full HR replacement
- Still need administrative capacity
- Higher hourly cost than PEO/ASO
Best When...
- You have HR staff but need senior expertise
- Facing specific challenges (M&A, investigations)
- Want to level up your HR function
HR Software (HRIS/HCM)
Businesses with HR expertise who want self-service tools
Pros
- Lower monthly cost
- Full control over processes
- Modern employee self-service
- Scalable technology platform
Tradeoffs
- No expert guidance included
- You own all compliance responsibility
- Requires internal HR expertise
- California law complexity is on you
Best When...
- You have an experienced HR team
- You're confident in California compliance
- Budget is the primary concern
In-House HR Team
Larger businesses wanting full control and dedicated staff
Pros
- Complete control over HR function
- Employees fully dedicated to your business
- Cultural alignment
- Immediate availability
Tradeoffs
- Expensive ($60K-$150K+ per HR hire)
- Need to hire multiple specialists
- Training and turnover costs
- All liability sits with you
Best When...
- You're 100+ employees and growing
- You have budget for multiple HR hires
- HR is a strategic differentiator for you
ASO (Administrative Services Organization)
Businesses wanting PEO-level support without co-employment
Pros
- Full HR administration and payroll
- Keep your existing benefits and workers' comp
- Dedicated HR Business Partner
- California compliance monitoring
- Lower cost than PEO
Tradeoffs
- No co-employment liability sharing
- Benefits may cost more on your own
- Must manage benefit relationships
Best When...
- You have great benefits and want to keep them
- Control matters more than liability sharing
- You want to start smaller and scale
See the Numbers Before You Commit
Our HR Blueprint gives you a clear cost comparison between your current approach and each outsourcing option—so you can make an informed decision, not a guess.
- Total cost of in-house HR vs. outsourcing
- Risk exposure and liability comparison
- Benefits cost analysis and options
- ROI projections for each model
"We spent months trying to decide between PEO and ASO. The HR Blueprint showed us the numbers clearly—and we made the right choice in one meeting."
The Easeworks Way: Risk Score to Blueprint
Don't guess which model is right. Get data-driven recommendations based on your actual business.
Take HR Risk Score
5 minutes to identify your compliance gaps and risk exposure
Get HR Blueprint
Detailed cost comparison showing your options side by side
Strategy Call
Talk with an expert who explains the recommendations
Choose & Start
Pick your model and begin onboarding within 2-4 weeks
Frequently Asked Questions
Common questions about PEO Alternatives Comparison
Ready to Find Your Perfect HR Fit?
Join 500+ California businesses who trust Easeworks with their HR, payroll, and compliance. Start with a free HR Risk Score—takes just 5 minutes.
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