Posts from the ASO Category
PEO’s and ASO’s offer free HRIS or HRMS (Human Resources Information Systems)
Posted by Kristian Svindland on June 2nd, 2009
One of the services that are often overlooked by companies looking at PEO is the fact that they are receiving a free HRIS (human resources information system) in a lot of instances from their provider. How can that be? Think about it. If you are a PEO and you have multiple worksite locations with multiple job codes, pay codes, pay frequency, etc…what is the most efficient way to manage all of that information? HRIS. So a PEO purchases an HRIS, then has additional modules added and layers of security so they can offer what amounts to a free web-based HRIS to their clients.
Comment » | Posted in ASO, General, HR Outsourcing, HRIS/HRMS, PEO | RSS | Permalink | Trackback
The main purpose of hr outsourcing…saving money
Posted by Kristian Svindland on May 12th, 2009
Whether you are looking for hard or soft-dollar savings…both can be found by outsourcing some or all of your HR functions.
But first, you have to want to be an employer that wants happy employees. Happy employees are productive employees. In addition, happy employees do not leave you. Thus, the huge cost of turnover, which is oftentimes, estimated as much as 50% of gross payroll due to lost management time, re-training and recruiting.
Therefore, if you have in place a benefits package that rivals those of big companies…why would your employees leave? The fact is, the will not. The hard dollar costs of benefits for employees are more than saved in hard and soft dollar savings.
Whether you go with a PEO (professional employer organization) or ASO (administrative service organization) to help you manage your human resources, for small to mid-sized companies, the economies of scale realized by these models will make your hr outsourcing a cost-effective tool that actually prop up your bottom line.
Comment » | Posted in ASO, General, HR Outsourcing, PEO | RSS | Permalink | Trackback
HR costs for “do-it-yourselfers”
Posted by Kristian Svindland on May 5th, 2009
I speak to owners of small companies all day long…the question they most want to ask, but have a hard time getting the gumption to ask is…”How much is this going to cost…and how will this save me money?” When considering HR outsourcing, it is prudent to know what your current HR costs are so you can make a rational comparison versus “doing it yourself.” The quick and easy answer, from an HR professionals’ prospective, is an average of 20% on top of gross pay. If you want to add a medical plan and pay 100% of the premium of the employee…adds another 3 – 5%.
Comment » | Posted in ASO, General, HR Outsourcing, PEO, Uncategorized | RSS | Permalink | Trackback
Why work with an HR outsourcing consultant?
Posted by Kristian Svindland on April 30th, 2009
Who knows the market better than a professional? By working with an HR outsourcing consultant, you get fast-tracked to the front of the line. HR services providers are increasing relying upon outside consultants and sales personnel to assist them in bringing in new business. Because the outside consultant has moved the client from lead to certified prospect, the provider is more willing to price on smaller accounts. In addition, since hr outsourcing consultants are considered big producers by the vendor, their clients are often given preferred pricing.
Comment » | Posted in ASO, General, HR Outsourcing | RSS | Permalink | Trackback
HRIS for small businesses
Posted by Kristian Svindland on March 10th, 2009
We have been speaking with micro and small businesses for the past 5 years about their HR outsourcing options. Obviously, we thing the best model is a Total HR outsourcing model, such as PEO or ASO. But some small businesses insist on getting their own HRIS. This is usually a very costly mistake. The price-tag on these systems is often a roadblock in and of itself. But the real issue is who is going to service and maintain the system after purchase?
We recommend taking a hard look at PEO or ASO or employee leasing companies, as they have already bought the software and are running it for the benefit of their client companies. At a much more reasonable price.
Comment » | Posted in ASO, General, HR Outsourcing, HRIS/HRMS, PEO | RSS | Permalink | Trackback
W-2 v. 1099…will HR outsourcing services delineate?
Posted by Kristian Svindland on February 23rd, 2009
Be careful when you are talking about employees versus sub-contractors (aka 1099’s). Although a lot of business owners like the flexibility of having contracted out some core business functions to sub-contractors, if your State’s department of labor finds out that these sub-contractors are really employees, then you will have lots of legal fees and fines to sort through.
So, can an HR outsourcing provider handle a W-2 (employee) as well as a 1099 (sub-contractor)? Depending on the provider, sure. All you have to do is ask your current provider, or if interviewing a payroll company or other hr outsourcing provider, such as an ASO (administrative service organization) or PEO (professional employer organization).
The payroll provider or ASO should be a no-brainer. The PEO is a little tricky. By definition, if you contract with a PEO, you do not have employees, thus the PEO would need to take over payroll and workers compensation insurance for all persons that are defined as employees. They do not want the risk of having sub-contractors that are not covered by workers compensation insurance, attempting to file a claim. Some PEO’s will reject potential clients that use 1099’s as they do not feel the risk is worth the reward.
Comment » | Posted in ASO, General, HR Outsourcing, PEO | RSS | Permalink | Trackback
PEO v. ASO v. HRIS plus Payroll
Posted by Kristian Svindland on January 26th, 2009
So many models…so little time.
Which is best for my company? Should I go PEO? What is PEO? How about an ASO?
HROplus’ mission is to assist small and medium-sized companies figure out the best overall model for HR outsourcing. And we mean outsourcing, not offshoring. Big difference.
We’ll get more technical in upcoming blogs and try to answer questions on each model. PEO, which stands for professional employer organization.
ASO, administrative service organization
HRIS or HRMS, software for human resources functionality
We are always searching for newer and better solutions to human resources, so drop us a line and we’ll discuss.
Kristian, Jeff and Tom
Comment » | Posted in ASO, General, HR Outsourcing, HRIS/HRMS, PEO, Uncategorized | RSS | Permalink | Trackback
