EOR vs. PEO:
What’s the Difference and Which is Right for You?
Introduction:
Confused about EORs and PEOs? Both streamline HR tasks but serve different needs. Let’s break it down:
Key Differences:
Factor EOR PEO Legal Employer EOR becomes the legal employer. You retain legal responsibility. Global Reach Hire in countries without a local entity. Limited to regions where you have an entity. Compliance Burden EOR handles 100% of compliance. Shared responsibility with PEO. Ideal For Global expansion, remote teams. Domestic HR outsourcing.
When to Choose EOR:
- Expanding to new markets quickly.
- Hiring remote employees abroad.
- Avoiding legal complexities.
When to Choose PEO:
- Managing payroll/benefits for existing local teams.
- Reducing HR workload domestically.
Case Study:
A tech firm used FVS’s EOR to hire developers in Poland and Japan, while their PEO managed U.S. staff.