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Rippling
Rippling
Rippling gives businesses one place to run HR, IT, and Finance. It brings together all of the workforce systems that are normally scattered across a company, like payroll, expenses, benefits, and computers. So for the first time e...Read more about Rippling
Paylocity
Paylocity
Paylocity is a cloud-based human capital management (HCM) platform that provides human resources and payroll management tools to help businesses manage core HR functions. Key features include payroll processing, benefits administr...Read more about Paylocity
WorkforceHub Time & Attendance
WorkforceHub Time & Attendance
WorkforceHub is a cloud-based time, attendance, and leave management system for small to mid-size businesses. This software can capture time data from web-based clocks or physical clocks for employees onsite, mobile, and working a...Read more about WorkforceHub Time & Attendance
Teamworks Group
Teamworks Group
Teamworks Group offers a comprehensive suite of human resource services, including payroll and tax management, benefits administration, human resource support, insurance services, strategic HR planning, business intelligence tools...Read more about Teamworks Group
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Meet Eric, a software expert who has helped 1,534 companies select the right product for their needs.
Talk with us for a free
15-minute consultationSoftware Advice is free because vendors pay us when they receive sales opportunities.
This allows us to provide comprehensive software lists and an advisor service at no cost to you.
This allows us to provide comprehensive software lists and an advisor service at no cost to you.
Tell us more about your business and an advisor will reach out with a list of software recommendations customized for your specific needs.
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ClearCompany
ClearCompany
Since 2004, ClearCompany’s end-to-end Talent Management platform has enabled thousands of companies to maximize talent by empowering people at every stage of the employee journey. ClearCompany integrates data-driven best practices...Read more about ClearCompany
VeriClock
VeriClock
VeriClock is cloud-based employee time tracking software for businesses of all sizes having mobile or fixed workforces. The system allows employees to clock in and out from their own mobile devices or via the web, telephone, SMS/t...Read more about VeriClock
Replicon
Replicon
Replicon's advanced timesheet functionality lets businesses track valuable information including check-ins/outs, task progress, and billable/non-billable hours. The invoice module allows users to build custom invoices, examine pay...Read more about Replicon
TriNet Zenefits
TriNet Zenefits
Zenefits is an all-encompassing HR SaaS platform designed specifically for small to midsize businesses. The Zenefits People Platform includes a robust offering spanning HR, Benefits, Payroll, Well-being and Performance apps that c...Read more about TriNet Zenefits
TimeIPS
TimeIPS
TimeIPS is a time and attendance system for companies in a wide range of industries. The solution is designed to help small and midsize companies manage time-tracking and attendance operations as well as generate payrolls for empl...Read more about TimeIPS
Top Echelon
Top Echelon
Top Echelon recruiting software offers applicant tracking (ATS) and client relationship (CRM) features in a single recruitment solution designed to manage the placement and hiring process for growing recruiting teams and companies...Read more about Top Echelon
CSP
CSP
Collaboration Software Partners (CSP) is a global HCM provider with a focus on implementation and support that caters to any sized organization above 100 employees. CSP has several office locations across the US and is headquarter...Read more about CSP
WorkBright
WorkBright
Say goodbye to scattered sticky notes and endless to-do lists. WorkBright removes the bottlenecks that slow down hiring so you can get new employees to work up to 8x faster without compromising security or accuracy. What makes W...Read more about WorkBright
Primalogik
Primalogik
Primalogik is a cloud-based performance management solution for human resources (HR) professionals. The tool helps organizations to assess people’s ongoing performance and development. Its key features include 360-degree feedback,...Read more about Primalogik
CommonOffice HRIS
CommonOffice HRIS
CommonOffice is a cloud-based human resources (HRIS) software service for small and midsized businesses. CommonOffice offers customizable HRIS solutions to organizations of all sizes, which includes applicant tracking (ATS) and HR...Read more about CommonOffice HRIS
BiznusSoft HR
BiznusSoft HR
BiznusSoft HR (formerly HRMSSoft) is a cloud-based human capital management system suitable for companies of all sizes. It includes a suite of integrated human resource modules offering benefits management, recruiting, performance...Read more about BiznusSoft HR
SmartSearch
SmartSearch
SmartSearch is a cloud-based applicant tracking system that caters to staffing firms, corporate, executive search and consulting companies. Primary features include applicant sourcing, applicant tracking, prescreening, email manag...Read more about SmartSearch
Justworks
Justworks
Justworks makes it easier to start, run, and grow a business. With Justworks, entrepreneurs and their teams get access to big-company benefits, automated payroll, compliance support, and HR tools - all in one place. Justworks PEO...Read more about Justworks
Papaya Global
Papaya Global
Papaya Global is a SaaS fintech company providing global payroll technology and the only one with an embedded payments platform designed for the workforce needs of global enterprises. Papaya's comprehensive technology, known as ...Read more about Papaya Global
StaffingSoft
StaffingSoft
StaffingSoft is a cloud-based applicant tracking solution (ATS) designed for businesses of all sizes in a variety of industries. Key features include contact management, resume mining, time tracking and job management. Staffi...Read more about StaffingSoft
WorkForce Suite
WorkForce Suite
The WorkForce Suite, by WorkForce Software, is a mobile first, cloud-based modern workforce management solution with integrated employee communications and collaboration capabilities. The WorkForce Suite helps global enterprise or...Read more about WorkForce Suite
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Buyers Guide
Last Updated: March 16, 2023As a professional employer organization (PEO), HR isn't just an important facet of your business; it's your business, period. Client companies rely on you to handle all of their important employee management needs, and if you can't deliver a stress-free experience, they'll go to your competitor or hire staff to do their HR in-house.
You need to be able to execute efficiently on important HR tasks and keep clients happy at the same time. In other words, you need software. But maybe you're not sure what options are out there, or which system will best fit your needs.
We're here to help.
In this Buyer's Guide, we'll go over everything you need to know about PEO software to help you make a more informed purchase decision.
Here's what we'll cover:
How Much Does PEO Software Cost?
Key Considerations When Purchasing PEO Software
Additional PEO Software Resources
What Is PEO Software?
PEO software helps PEOs and administrative services organizations (ASOs) perform HR duties for client businesses. Along with functionality to manage your customers' core HR needs—things like payroll, benefits enrollment and compliance reporting, for example—PEO software systems also allow you to create custom invoices and bill clients for services rendered.
PEO dashboard in Worklio
Being a PEO doesn't necessarily mean you need to buy a product solely dedicated to the PEO/ASO audience, though they do exist (e.g., PrismHR). Many popular HR systems offer the functionality PEOs need and cater to both in-house HR departments and outsourced HR service providers (e.g., Paylocity).
Common PEO Software Features
PEOs need to make sure that any software they adopt has the functionality to support the services they offer. Here are some common features buyers should look out for when evaluating different PEO software systems:
Manage wage and salary rates for employees. Automatically calculate and run payroll, pay workers, run reports and export payroll costs to the company accounting ledger. | |
Allow workers to enroll in benefits plans or change options on existing enrollments themselves. Run reports and track program costs. | |
Monitor employee paid time off and hours worked. Automatically port hours into payroll to calculate accurate compensation. | |
Post job openings, create candidate profiles and manage applicants through client hiring workflows. | |
Automatically walk new hires through client onboarding processes. Important paperwork can be signed and stored digitally. | |
Compliance management | Track client compliance with local, state and federal employment laws (e.g., ACA, EEOC, OSHA etc.). |
Billing and invoicing | Correctly bill clients for services offered. Send customizable invoices and track accounts receivable. |
Client and employee portals | Gives workers and HR personnel access within the system to view information and perform tasks such as running reports. |
Some PEOs may elect to buy separate HR systems with all the functionality they need and integrate them together, but we recommend investing in one comprehensive solution, if possible.
A comprehensive solution mitigates the risk of data becoming lost or corrupted while transferring between applications, and provides a better experience for clients, who only have to learn and log in to one system.
How Much Does PEO Software Cost?
It would be great if all PEO software systems were priced the same way, but unfortunately that's not the case. Here are some common pricing structures you can expect to run into:
Perpetual license. This is more common with on-premise systems that are hosted on your own server (as opposed to cloud-based software, which is hosted by the vendor and accessed through a web browser). You pay one large upfront cost to own the software indefinitely.
Subscription (per employee, per month or per user, per month). Vendors may charge based on the number of employees in your organization or the number of employees total across all of your clients, so be sure to ask what they mean by "per employee."
Freemium. Some vendors offer a basic version of their platform for free, then charge for extra functionality. Open source software is also "free" in the sense that it doesn't cost any money to get access to the code, but there is still a significant investment here in terms of IT deployment and maintenance.
Key Considerations When Purchasing PEO Software
Before you talk to a single PEO software vendor, you first have to ask important questions internally about your goals and constraints.
These include: Which features do you need and which ones do you merely want? What's your budget? If you're replacing an existing system, what have been the most significant pain points you want to remedy? What's your deadline to be up-and-running with new software?
Once you have answers to these important questions and pare down your options, it's time to do demos. Here are some key considerations to keep in mind when evaluating different PEO software systems:
User interface is critical. With an in-house system, you might be able to get away with a clunky interface, if it gets the job done. Not so if you're a PEO. Clients are going to be using your system too, so it's vital that whatever software you choose be intuitive and easy to use.
Will your software play nice with client systems? Clients may have their own accounting or time tracking systems they want to use. If they can't easily integrate with your software, that will lead to headaches down the road.
Evaluate the support behind the software too. Talk to vendors extensively about the support options they offer and their associated cost. Also be sure to understand how they will handle updates. The last thing you need is a client being unexpectedly locked out of the system during maintenance.
Additional PEO Software Resources
A PEO software purchase isn't something that should be taken lightly. Whatever product you choose will have a profound effect on the quality of service you offer.
This guide offers basic advice, but if you want to learn more, here are some additional resources:
How to Save Money While Buying HR Software - In this article, we show you ways to save money and stay within your budget when purchasing HR software.
3 Best Practices for Streamlined HR Service Delivery - Tired of responding to employee questions all day? Here, we detail three best practices to make your HR service delivery more automated and efficient.
HRIS vs. HRMS vs. HCM: What's the Difference? - Shopping for HR software can leave new buyers drowning in alphabet soup. Learn the difference between an HRIS, an HRMS and HCM software.