Glossary · PEO basics
HRO (Human Resources Outsourcing)
A broad category of outsourcing arrangements in which an external provider takes on some or all HR functions for a client business.
Human Resources Outsourcing (HRO) is an umbrella term that includes PEOs, ASOs, payroll bureaus, benefits administrators, and recruitment process outsourcers. Each model differs in which HR functions are transferred and whether co-employment exists.
Buyers comparing HRO options should map their needs to the specific model: PEO for bundled co-employment, ASO for administration without co-employment, EOR for entity-free hiring, and point solutions for narrower needs.
Related terms
- PEO (Professional Employer Organization)A PEO is a firm that co-employs a client's workforce to deliver payroll, benefits, HR, and compliance services under a shared-employment arrangement.
- ASO (Administrative Services Organization)A service model that handles HR, payroll, and benefits administration without entering a co-employment relationship.
- Employer of Record (EOR)A third-party that legally employs workers on behalf of a client, typically used to hire in jurisdictions where the client has no entity.
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