
PEO vs Fractional HR, Explained
A PEO and fractional HR both handle HR functions, but they work very differently, and picking the wrong one can cost you. A PEO co-employs your workforce, locks you into a bundled package, and takes a cut of your payroll. Fractional HR is a consulting model: you get a senior HR professional working inside your business, without handing over control of how you manage your people. For most DFW small businesses under 200 employees, the flexibility and cost structure of fractional HR wins.
But the right answer depends on where your company is right now.