PEO vs ASO vs HRO in California: Which Fits Your Risk + Cost?
Three proven HR models. One decision that impacts your liability, costs, and growth. Here's how California businesses choose.
- PEO: Maximum protection through co-employment
- ASO: Full control with expert administration
- HRO: Strategic HR leadership on demand
- Get your HR Risk Score for a personalized recommendation
- Receive an HR Blueprint comparing costs for each model
Compare Your Options
Each model has different strengths. Here's how to choose the right one for your business.
PEO (Professional Employer Organization)
Businesses wanting maximum liability protection and enterprise-level benefits
Pros
- Co-employment shares HR liability with Easeworks
- Access Fortune 500 benefits at SMB prices
- Workers' comp under master policy (often lower rates)
- Strongest California compliance protection
- Full HR infrastructure included
Tradeoffs
- Employees are co-employed
- Less flexibility in benefits selection
- Typically higher cost than ASO
Best When...
- You've had an HR lawsuit, DOL audit, or PAGA claim
- You can't afford competitive benefits on your own
- High-risk industry or workforce
- Rapid growth requiring scalable HR
ASO (Administrative Services Organization)
Businesses wanting full control with expert support
Pros
- Remain sole employer of record
- Keep your existing benefits and workers' comp
- Flexible, modular service packages
- Often lower cost than PEO
- Easy to scale into PEO later
Tradeoffs
- You retain all employer liability
- Benefits may cost more on your own
- Must manage relationships with multiple vendors
Best When...
- You have great benefits and want to keep them
- Control matters more than liability sharing
- Starting with HR outsourcing and want to scale
- Budget-conscious but need expert support
HRO (HR Outsourcing / Consulting)
Businesses with some HR capacity wanting strategic support
Pros
- Fractional HR leadership without full-time cost
- Strategic guidance on complex issues
- Project-based or ongoing retainer options
- Works alongside your existing team
Tradeoffs
- Not a full HR replacement
- You still need administrative capacity
- Best paired with internal HR resources
Best When...
- You have HR staff but need senior expertise
- Facing a specific challenge (M&A, layoffs, investigation)
- Want to level up your HR function
- Need interim HR leadership
PEO (Professional Employer Organization)
Businesses wanting maximum liability protection and enterprise-level benefits
Pros
- Co-employment shares HR liability with Easeworks
- Access Fortune 500 benefits at SMB prices
- Workers' comp under master policy (often lower rates)
- Strongest California compliance protection
- Full HR infrastructure included
Tradeoffs
- Employees are co-employed
- Less flexibility in benefits selection
- Typically higher cost than ASO
Best When...
- You've had an HR lawsuit, DOL audit, or PAGA claim
- You can't afford competitive benefits on your own
- High-risk industry or workforce
- Rapid growth requiring scalable HR
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
Understanding Pricing Models
How each model is typically priced and what affects your cost
PEO Pricing
PEO pricing is typically structured as a percentage of payroll (3-15%) or per-employee-per-month fee ($150-$250+). This includes HR administration, benefits access, workers' comp, compliance monitoring, and dedicated support. Your actual cost depends on headcount, industry risk classification, and benefits selection. Many California businesses find PEO total cost competitive when factoring in benefits savings and reduced liability.
ASO Pricing
ASO pricing is usually a flat per-employee-per-month fee ranging from $50-$150 depending on services included. This covers HR administration, payroll processing, compliance monitoring, and access to your HR Business Partner. You maintain your own benefits and workers' comp policies, so your total cost is the ASO fee plus your existing insurance costs. ASO often has the lowest upfront cost.
HRO / Consulting Pricing
HRO/HR consulting is typically structured as a monthly retainer based on hours and expertise level needed. Strategic HR consulting might range from $2,000-$10,000+ per month depending on scope. This works well for businesses with some HR capacity who need expert guidance on complex California employment issues, executive coaching, or interim leadership.
"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 HR Model 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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