Top 5 Alternatives to PEOs for Small and Midsize Businesses

Discover the top PEO alternatives for growing businesses—especially those using Paylocity. Learn how EmphasisHR provides expert HR support tailored for your company’s next stage of growth.

For many growing companies, a Professional Employer Organization (PEO) might seem like the go-to HR solution. But as your business scales, the rigid structure and bundled pricing of a PEO can become more of a burden than a benefit. Whether you’re looking for cost transparency, greater control, or a solution that grows with you, there are better options.

Introduction

At EmphasisHR, we specialize in helping small and midsize businesses transition away from PEOs and into scalable HR solutions that actually support growth. And because we work exclusively within the Paylocity platform, our clients benefit from seamless integration with one of the most advanced HR systems on the market.

Let’s take a look at the top PEO alternatives that give you flexibility, visibility, and the HR expertise your business deserves.

1. HR Outsourcing via Administrative Services Only (ASO)

Unlike a PEO, which becomes the employer of record, an Administrative Services Only (ASO) model allows you to retain full control of your employees and culture, while outsourcing key HR functions.

Why it works:

  • Full legal control of your workforce
  • Transparent pricing (no co-employment or bundled costs)
  • Scalable services tailored to your company size
  • Works seamlessly with platforms like Paylocity

Where EmphasisHR fits:
We deliver ASO services that integrate directly with Paylocity, providing you with a single source of truth for payroll, compliance, benefits, and performance management, without giving up control.

2. HR Consulting & Project-Based Support

If you’re not ready for full-service outsourcing but need expert support on compliance, benefits, or employee relations, project-based consulting offers targeted expertise when and where you need it.

Why it works:

  • On-demand expertise
  • Ideal for transitions, audits, or new initiatives
  • Budget-friendly and focused

Where EmphasisHR fits:
Our Paylocity-certified HR consultants are available to lead or support strategic HR projects, whether you’re launching a new benefits program or improving your onboarding process.

3. Co-Sourcing HR with an Expert Partner

Co-sourcing is the hybrid approach: keep your internal HR staff, but partner with an external team to handle complex or time-consuming functions.

Why it works:

  • Boosts your team’s capabilities without increasing headcount
  • Leverages deep subject-matter expertise
  • Ensures continuity and compliance

Where EmphasisHR fits:
We act as an extension of your HR team, bringing deep experience and platform fluency in Paylocity to fill in the gaps and optimize performance.

4. Build Your HR Function In-House with the Right Tools

Some companies outgrow the need for HR outsourcing altogether. With the right technology and training, you can build a lean, efficient HR team in-house.

Why it works:

  • Complete ownership of HR functions
  • Custom-built to align with your business needs
  • Tech-enabled with platforms like Paylocity

Where EmphasisHR fits:
We help businesses build out internal HR departments by training staff, configuring Paylocity for maximum efficiency, and ensuring ongoing compliance and performance alignment.


5. Modular HR Service Providers

A rising trend is selecting service-specific providers for benefits, payroll, and compliance rather than bundling everything under a PEO.

Why it works:

  • Customizable to your needs
  • Lower costs compared to bundled PEO services
  • Greater control over vendors and relationships

Where EmphasisHR fits:
As your single point of contact for all things HR, we coordinate modular solutions within the Paylocity platform to create a unified, streamlined experience without overpaying or overcommitting.

Why EmphasisHR is Different

Unlike many providers, EmphasisHR works exclusively within the Paylocity ecosystem. That means we’re not just familiar with the platform, we’re experts in it. For growth companies already using Paylocity or transitioning to it, this alignment creates powerful advantages:

Our mission is simple: Let us do the work so you can focus on growing your business.

Ready to Make the Switch from Your PEO?

If you’re exploring your options beyond the PEO model, it’s time to talk to the HR experts who understand your business, and your platform. Schedule a free consultation with EmphasisHR to discuss how we can build the right solution for you.

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