--- title: Why Use a PEO Instead of an HR Person description: Why Use a PEO instead of an HR person for your growing business? With a PEO, you'll often save costs, experience streamlined operations and much more. image: https://blog.axcethr.com/hubfs/Why%20Hire%20a%20PEO%20Instead%20of%20an%20HR%20Person.webp --- - [Client Portal](https://www.axcethr.com/client-services/) - [Employee Login](https://www.axcethr.com/client-services/) [![AxcetHR Solutions Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png)](https://www.axcethr.com/) - [About Us](https://www.axcethr.com/about-us/) - [Corporate Philantropy](https://www.axcethr.com/about-us/corporate-philanthropy/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Values and Culture](https://www.axcethr.com/about-us/values-and-culture/) - [Kansas PEO](https://www.axcethr.com/about-us/kansas-peo/) - [Missouri PEO](https://www.axcethr.com/about-us/missouri-peo/) - [Careers](https://axcethrsolutions.prismhr-hire.com/) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [Why Choose Axcet?](https://www.axcethr.com/why-axcet/) - 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[Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [All about COVID-19 in the Workplace](https://blog.axcethr.com/topic/covid19) - [Kansas & Missouri HR News](https://blog.axcethr.com/topic/kansas-and-missouri-hr-news) - [Kansas City Interest News](https://blog.axcethr.com/topic/kansas-city-interest-news) - [PEO/HRO](https://blog.axcethr.com/topic/peo) - Choose Topic: - [Human Resources](https://blog.axcethr.com/topic/human-resources) - Payroll Administrations - [Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [PEO](https://blog.axcethr.com/topic/peo) Play Audio Why Use a PEO Instead of an HR Person 6:22 # Choosing Efficiency: Why Use a PEO Over an In-House HR Person By [Mariah Collins, SHRM-SCP](https://blog.axcethr.com/author/mariah-collins) on [Oct 24, 2025](https://blog.axcethr.com/why-it-makes-sense-to-hire-a-peo-instead-of-an-hr-person) 5 min read [2 Comments](https://blog.axcethr.com/why-it-makes-sense-to-hire-a-peo-instead-of-an-hr-person#comments-listing) Share this: - - - - [whatsapp://send?text=https://blog.axcethr.com/why-it-makes-sense-to-hire-a-peo-instead-of-an-hr-person](whatsapp://send?text=https://blog.axcethr.com/why-it-makes-sense-to-hire-a-peo-instead-of-an-hr-person) - [mailto:?subject=Why%20Use%20a%20PEO%20Instead%20of%20an%20HR%20Person&body=https://blog.axcethr.com/why-it-makes-sense-to-hire-a-peo-instead-of-an-hr-person](mailto:?subject=Why%20Use%20a%20PEO%20Instead%20of%20an%20HR%20Person&body=https://blog.axcethr.com/why-it-makes-sense-to-hire-a-peo-instead-of-an-hr-person) ![Why It Makes Sense To Hire a PEO Instead of an HR Person](https://blog.axcethr.com/hs-fs/hubfs/Why%20It%20Makes%20Sense%20To%20Hire%20a%20PEO%20Instead%20of%20an%20HR%20Person.webp?width=1200&name=Why%20It%20Makes%20Sense%20To%20Hire%20a%20PEO%20Instead%20of%20an%20HR%20Person.webp) Are you pondering over 'Why use a PEO' instead of hiring a traditional HR person for your small to mid-sized business? You're not alone in this decision-making process. Many business owners are discovering the significant benefits of partnering with a [professional employer organization (PEO)](https://blog.axcethr.com/what-is-a-peo-and-how-can-it-help-your-business).  From cost savings to enhanced HR capabilities, we'll take a deep dive into why a PEO offers a more comprehensive solution that can lead your business toward greater efficiency and success than a traditional in-house HR approach.  RELATED: [PEO Services Help Small Companies Thrive >>](https://blog.axcethr.com/peos-services-help-small-companies-thrive) ## Does PEO Outsourcing Replace HR?  Does a PEO replace an internal HR person or team? The short answer here is yes, depending on the size and specific needs of the business. Let's take a deeper look: When considering the question, 'Does a PEO replace an HR team?' the answer varies depending on the size and specific needs of your business. ### Businesses with fewer than 20 employees For small businesses (those with 20 or fewer employees), the role of a PEO often extends to encompass the entire range of HR functions. In this scenario, a PEO effectively replaces the need for an in-house HR team, offering a comprehensive solution for managing payroll, benefits, compliance and other HR-related tasks. For many small businesses, having a full-time HR person can be cost-prohibitive. It is simply not in the budget, at least not comfortably so. Whereas, working with a PEO will help save money in the long run and can provide greater flexibility as your company grows. So, why use a PEO instead of an HR person? Because this setup is particularly advantageous for small businesses due to its cost-effectiveness and the access it provides to a broader range of employee benefits and HR expertise. RELATED: [How a PEO Creates Scalable HR Infrastructure for Small Businesses >>](https://blog.axcethr.com/how-a-peo-creates-a-scalable-hr-infrastructure-for-small-businesses) ### Businesses with 50 or more employees On the other hand, for medium-sized businesses (those with 50 or more employees), the situation may differ. For this size of business, where the complexity and scale of operations might warrant it, a PEO can either work alongside an HR manager or a small HR team or provide a comprehensive outsourced HR solution.  In this instance where the business already has an in-house HR manager, the [PEO services](https://www.axcethr.com/services/) would complement, not overpower, those services that an HR person provides, ultimately supplementing them with added expertise and allowing them to focus on broader organizational goals. If your business already partners with a PEO but isn't receiving this level of expertise or support, it may be time to consider[ switching](https://www.axcethr.com/switching-peos/?hsCtaAttrib=216758166897)[ PEO providers](https://www.axcethr.com/switching-peos/?hsCtaAttrib=216758166897) to find a partner that's a better fit for your organization's needs. For example, [certified PEOs](https://blog.axcethr.com/cpeo-vs-peo), like Axcet HR Solutions, can provide support for the tasks that require in-depth knowledge, like payroll taxes and processing, employee benefits administration, workers' compensation claim management, workplace safety, OSHA compliance and compliance with other federal, state and local laws. This collaborative approach leverages the strengths of both the PEO and the in-house HR, ensuring a more comprehensive HR management strategy. In essence, the role of a PEO in replacing or complementing an HR team is tailored to the scale and specific requirements of your business, whether small or medium-sized.  ## [![benefits of a peo six lesser known services that can transform your business](https://no-cache.hubspot.com/cta/default/2652187/a383599d-1a69-420b-b076-073580ba4ac6.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/a383599d-1a69-420b-b076-073580ba4ac6)Why Use a PEO  - ### PEO Firms Are Well-Vetted   You have the peace of mind that comes with accreditation and certification. When you partner with a company such Axcet HR Solutions, you know that we’ve undergone a thorough and rigorous process with the IRS and are therefore [designated a certified PEO (CPEO).](https://blog.axcethr.com/cpeo-vs-peo) What this means for you is that should any issues arise as far as employment taxes, the responsibility falls to us to take care of any such situation. A CPEO is a firm that meets certain tax, income and other financial criteria--all highly beneficial to your business.  - ### **Complete HR Solutions** For many small businesses, especially those without the resources or need for a dedicated in-house HR team, a PEO can effectively assume the role of the entire HR department - and at an expert level. They manage a broad range of HR functions including payroll, benefits administration, compliance and risk management providing a built-in team ready to work for you. ### **Cost-effective HR management** Small businesses benefit from the cost-effectiveness of a PEO, as it allows them to access comprehensive HR services without the overhead associated with full-time HR staff. - ### **Access to Better Benefits and Resources** Why use a PEO for benefits? PEOs enable small businesses to offer their employees a range of benefits and resources typically available only to larger companies, which can be a significant advantage in attracting and retaining talent. Just how serious are the healthcare savings when using a PEO? The National Association of Professional Employer Organizations puts the average annual health benefits cost savings per employee for small businesses that use a PEO at 37%. - ### **Compliance & risk reduction** For small business owners, keeping up with the latest employment laws and regulations can be overwhelming. A PEO handles these aspects, significantly reducing the legal risks and compliance burdens for the business. For employers weighing the cost and complexity of hiring internally versus outsourcing, a good next step is to [request a consultation](https://www.axcethr.com/schedule-consultation/) to compare both approaches in the context of your organization. ## Still Not Sure if a PEO Is the Right Move for Your Business? Take our short six-question quiz to see whether partnering with a PEO makes sense for your company’s size, structure, and goals. You’ll get instant clarity on whether outsourcing HR or hiring in-house is the smarter move for your next stage of growth.   ## **PEO Outsourcing Provides Unique Advantages** When you decide to go with a PEO firm, you get the advantage of all it can offer your business in conjunction with the money a PEO can save you over time. You don’t have to compete for those HR professionals who are highly sought after in your industry and market. You don’t have to come up with a salary that your company just can’t afford right now. Instead, you can work with a well-established, affordable PEO firm that has your best interests at heart.  At Axcet, we have been working with Kansas City area business owners for more than 35 years, helping them manage their HR services, stay compliant with employment rules and regulations, and find the best rates available when it comes to benefits and insurance premiums. If you're curious about what it's like to work with a PEO, we invite you to explore our analysis of the real [PEO experience](https://blog.axcethr.com/elevating-employee-satisfaction-the-peo-advantage). Whether you have an in-house HR team or are building your HR game plan from scratch, we would love to help you handle HR more efficiently. [Contact us today to learn more](https://www.axcethr.com/contact/) about the many answers to the question, “Why use a PEO?” [![Axcet HR Solutions answers what does a PEO really cost](https://no-cache.hubspot.com/cta/default/2652187/interactive-216757902615.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLIC4cN6YD%2BUAF6rClLHsh6EejV2eO%2Bwz0f%2FJRZE2iwlIPwW8teZLFZfXt1xG2hDjjCBpwwbJ%2BQz3ds4rBNlbGiqDNZYasJer4Ej5iGj93zn4etKh%2BnFtWyYCbdD0qyiEW8LTwCR0Pe%2BItbqbOv3gY%2FPI7SJZjIdymfH%2BMt8eapAdJLovQ%3D%3D&webInteractiveContentId=216757902615&portalId=2652187) [![Mariah Collins, SHRM-SCP](https://blog.axcethr.com/hs-fs/hubfs/Mariah_DSC6768-Edit.jpg?width=80&height=80&name=Mariah_DSC6768-Edit.jpg)](https://blog.axcethr.com/author/mariah-collins) Written by #### [Mariah Collins, SHRM-SCP](https://blog.axcethr.com/author/mariah-collins) Mariah Collins, SHRM-SCP, is a Human Resources Consultant at Axcet HR Solutions, specializing in people management, process improvement, and project management. With a strong background in payroll, benefits, and employee relations, she brings over four years of experience in providing HR solutions to small businesses. Mariah holds a Bachelor of Business Administration in Human Resources from Emporia State University and is known for her expertise in helping businesses streamline HR processes while ensuring compliance. Her contributions to the Axcet blog reflect her deep understanding of HR challenges and her commitment to supporting small business owners. Read more [View all posts →](https://blog.axcethr.com/author/mariah-collins) ### Get HR Updates ### Table of Contents ### Related Resources - [services What is a PEO](https://www.axcethr.com/services/what-you-need-to-know-about-peo-services/) - [article PEO Benefits](https://blog.axcethr.com/7-reasons-why-small-businesses-should-partner-with-a-peo) #### [10 Common HR Issues Small Businesses Face – And How to Solve Them ![small business struggles](https://blog.axcethr.com/hubfs/struggling-business-signs-you-need-a-peo-_1200-%C3%97-628-px_%20(1).webp)](https://blog.axcethr.com/common-hr-issues) #### [![Axcet adds Commute Guard for 2026 Employee Benefits Line Up](https://blog.axcethr.com/hubfs/commute-guard-2-_1200-x-628-px_%20(1).webp) Axcet Adds Commute Guard to Its Employee Benefits Suite](https://blog.axcethr.com/commute-guard) ## Let us know what you think... ![AxcetHR Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [What We Stand For](https://www.axcethr.com/about-us/what-we-stand-for/) - [Expertise](https://www.axcethr.com/expertise/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Payroll Services](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Subscribe to Latest Resources](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [\[ Client Portal \]](https://www.axcethr.com/client-services/) - - - - - Search for: Copyright © 2023 Axcet HR Solutions – Kansas City's PEO Since 1988 | [Privacy Policy](https://www.axcethr.com/privacy-policy/) | [Terms and Conditions](https://www.axcethr.com/terms-conditions/) | [**Join our Team – Careers »**](https://axcethrsolutions.prismhr-hire.com/) 10975 Grandview Drive Suite 200, Corporate Woods Building 27, Overland Park, KS 66210 | Call us: 913-383-2999 *The IRS does not endorse any particular For more information on [certified professional employer organizations](https://www.axcethr.com/why-axcet/certified-peo/), go to [www.irs.gov](https://www.irs.gov).* Remove cookies ![](https://dc.ads.linkedin.com/collect/?pid=43031&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Mariah Collins, SHRM-SCP", "url" : "https://blog.axcethr.com/author/mariah-collins" }, "dateModified" : "2026-07-15T02:18:50.336Z", "datePublished" : "2025-10-24T10:00:00.000Z", "headline" : "Why Use a PEO Instead of an HR Person", "image" : [ "https://blog.axcethr.com/hubfs/Why%20Hire%20a%20PEO%20Instead%20of%20an%20HR%20Person.webp" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/why-it-makes-sense-to-hire-a-peo-instead-of-an-hr-person", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hubfs/_logo_axcethr_primary.png" }, "name" : "Axcet HR Solutions" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Kansas City", "addressRegion" : "MO" }, "aggregateRating" : { "@type" : "AggregateRating", "bestRating" : "5", "ratingValue" : "5", "reviewCount" : "100" }, "areaServed" : { "@type" : "Country", "name" : "United States" }, "award" : [ "IRS Certified Professional Employer Organization (CPEO)", "Award-Winning HR Solutions Provider", "SHRM Certified HR Professionals", "HRCI Certified HR Professionals" ], "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "English", "contactType" : "Customer Service" }, "description" : "Award-winning Professional Employer Organization (PEO) providing comprehensive HR solutions, payroll services, employee benefits, and risk management to small and mid-sized businesses. 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You're not alone in this decision-making process. Many business owners are discovering the significant benefits of partnering with a professional employer organization (PEO). From cost savings to enhanced HR capabilities, we'll take a deep dive into why a PEO offers a more comprehensive solution that can lead your business toward greater efficiency and success than a traditional in-house HR approach. RELATED: PEO Services Help Small Companies Thrive >> Does PEO Outsourcing Replace HR? Does a PEO replace an internal HR person or team? The short answer here is yes, depending on the size and specific needs of the business. Let's take a deeper look: When considering the question, 'Does a PEO replace an HR team?' the answer varies depending on the size and specific needs of your business. Businesses with fewer than 20 employees For small businesses (those with 20 or fewer employees), the role of a PEO often extends to encompass the entire range of HR functions. In this scenario, a PEO effectively replaces the need for an in-house HR team, offering a comprehensive solution for managing payroll, benefits, compliance and other HR-related tasks. For many small businesses, having a full-time HR person can be cost-prohibitive. It is simply not in the budget, at least not comfortably so. Whereas, working with a PEO will help save money in the long run and can provide greater flexibility as your company grows. So, why use a PEO instead of an HR person? Because this setup is particularly advantageous for small businesses due to its cost-effectiveness and the access it provides to a broader range of employee benefits and HR expertise. RELATED: How a PEO Creates Scalable HR Infrastructure for Small Businesses >> Businesses with 50 or more employees On the other hand, for medium-sized businesses (those with 50 or more employees), the situation may differ. For this size of business, where the complexity and scale of operations might warrant it, a PEO can either work alongside an HR manager or a small HR team or provide a comprehensive outsourced HR solution. In this instance where the business already has an in-house HR manager, the PEO services would complement, not overpower, those services that an HR person provides, ultimately supplementing them with added expertise and allowing them to focus on broader organizational goals. If your business already partners with a PEO but isn't receiving this level of expertise or support, it may be time to consider switching PEO providers to find a partner that's a better fit for your organization's needs. For example, certified PEOs, like Axcet HR Solutions, can provide support for the tasks that require in-depth knowledge, like payroll taxes and processing, employee benefits administration, workers' compensation claim management, workplace safety, OSHA compliance and compliance with other federal, state and local laws. This collaborative approach leverages the strengths of both the PEO and the in-house HR, ensuring a more comprehensive HR management strategy. In essence, the role of a PEO in replacing or complementing an HR team is tailored to the scale and specific requirements of your business, whether small or medium-sized. Why Use a PEO PEO Firms Are Well-Vetted You have the peace of mind that comes with accreditation and certification. When you partner with a company such Axcet HR Solutions, you know that we’ve undergone a thorough and rigorous process with the IRS and are therefore designated a certified PEO (CPEO). What this means for you is that should any issues arise as far as employment taxes, the responsibility falls to us to take care of any such situation. A CPEO is a firm that meets certain tax, income and other financial criteria--all highly beneficial to your business. Complete HR Solutions For many small businesses, especially those without the resources or need for a dedicated in-house HR team, a PEO can effectively assume the role of the entire HR department - and at an expert level. They manage a broad range of HR functions including payroll, benefits administration, compliance and risk management providing a built-in team ready to work for you. Cost-effective HR management Small businesses benefit from the cost-effectiveness of a PEO, as it allows them to access comprehensive HR services without the overhead associated with full-time HR staff. Access to Better Benefits and Resources Why use a PEO for benefits? PEOs enable small businesses to offer their employees a range of benefits and resources typically available only to larger companies, which can be a significant advantage in attracting and retaining talent. Just how serious are the healthcare savings when using a PEO? The National Association of Professional Employer Organizations puts the average annual health benefits cost savings per employee for small businesses that use a PEO at 37%. Compliance & risk reduction For small business owners, keeping up with the latest employment laws and regulations can be overwhelming. A PEO handles these aspects, significantly reducing the legal risks and compliance burdens for the business. For employers weighing the cost and complexity of hiring internally versus outsourcing, a good next step is to request a consultation to compare both approaches in the context of your organization. Still Not Sure if a PEO Is the Right Move for Your Business? Take our short six-question quiz to see whether partnering with a PEO makes sense for your company’s size, structure, and goals. You’ll get instant clarity on whether outsourcing HR or hiring in-house is the smarter move for your next stage of growth. PEO Outsourcing Provides Unique Advantages When you decide to go with a PEO firm, you get the advantage of all it can offer your business in conjunction with the money a PEO can save you over time. You don’t have to compete for those HR professionals who are highly sought after in your industry and market. You don’t have to come up with a salary that your company just can’t afford right now. Instead, you can work with a well-established, affordable PEO firm that has your best interests at heart. At Axcet, we have been working with Kansas City area business owners for more than 35 years, helping them manage their HR services, stay compliant with employment rules and regulations, and find the best rates available when it comes to benefits and insurance premiums. If you're curious about what it's like to work with a PEO, we invite you to explore our analysis of the real PEO experience. Whether you have an in-house HR team or are building your HR game plan from scratch, we would love to help you handle HR more efficiently. 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