clock December 7, 2022

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What is ASO in HR?

Did you know that 49% of workers start looking for a new job after two failed paycheck errors? Simply put, the effective management of HR tasks such as payroll and tax filing can be critical in ensuring your business stays afloat and your employees stay happy.

ASO in HR is a process that can help your business manage its employee relations and benefits. By automating these processes with the help of a PEO or ASO service provider, you can save time and money while still getting the best possible coverage for your employees. 

If you’re unfamiliar with how that works or what the benefits are then sit tight and keep scrolling. Here’s what you need to know about ASO in HR.

What Is ASO in HR?

ASO in HR stands for Administrative Services Organization. Their services off a way to streamline many different administrative tasks provided by the Human Resources department. This means they can handle tasks such as:

  • Payroll
  • Benefits
  • Health insurance programs
  • Employee tracking
  • Recruiting assistance

Organizations that use ASOs are typically able to reduce costs related to these functions. They can also help make the workforce more efficient.

All in all, ASOs provide a valuable service that can benefit any organization’s HR needs. They’re an excellent resource for any company looking for flexible staffing solutions or help with issues related to compliance. 

What Services Does an ASO Provide?

ASOs understand the importance of cutting costs and increasing efficiency in business, so they have teams that specialize in streamlining processes and improving operations. ASOs also prioritize transparency and accountability when it comes to their services. They take responsibility for any deficiencies or errors that may arise. 

Working with an ASO should give you peace of mind. You should feel that the administrative aspects of your business are being handled professionally. Not only that, but the people managing them are knowledgeable and experienced people who want to see the best results for your business.

However, before you can start working with the right provider, it’s important to understand what kinds of services ASOs offer and how you can make the best use of those services within your business.

Talent Acquisition

When it comes to talent acquisition, some ASOs provide companies with the chance to outsource their administrative functions. This gives you more time and resources to focus on finding the right people for your business.

ASOs are also beneficial in that they provide access to a wider range of labor markets and industries. Ultimately, this provides you with more prospects for recruiting top talent. How does this happen? What’s included in these types of services?

ASO services may include communication with candidates and employment database organizations, both of which are essential capabilities when it comes to obtaining quality job applicants. ASOs recognize that for businesses to succeed, they must have access to high-quality talent; they help facilitate this process while freeing up company time and resources.

Employee Benefits

ASOs also help businesses navigate the complexities of administering employee benefits. ASOs free employers up to focus on their core business strategy, as ASOs provide simplified access to various types of employee benefit plans.

Specifically, ASOs handle tedious tasks. These include managing enrollment periods and allowing workers to choose from an array of available benefits. In this sense, they offer employees a secure point of contact for questions or concerns related to their benefits program.

By working with ASOs, businesses have the assurance that their employee benefit plans are being managed effectively and efficiently without taking away time from their other core activities. You know, the ones that help you increase revenue and grow as a company.

Payroll & Taxes

There’s no denying that managing your taxes and payroll as a small to medium-sized business is a daunting task. When you’re facing costly fines and tax penalties, you want to make sure you get it right. This is where ASOs can help.

ASOs take the complexity out of processing payroll and taxes. This frees you up to focus on running your business operations. ASO services in this category include tasks such as:

  • Employee financial onboarding (tax forms, payroll forms, etc.)
  • Vacation tracking
  • Time tracking
  • Payroll processing

Likewise, many ASOs also offer a tax analysis to organize your tax documents to maximize your deductions. All in all, ASOs help ensure accuracy when dealing with complicated payroll systems. This ensures employees are paid correctly and quickly while minimizing taxes owed.

Human Resources

Finally, ASOs also offer several HR-focused services as well. These types of services will vary from one organization to the next. However, most ASOs have the expertise to assist with things like:

  • Employee hiring
  • Employee onboarding
  • Performance reviews
  • Job postings

ASOs may even be responsible for labor law compliance, ensuring that companies are in line with their state and federal regulations.

All in all, regardless of the service you choose, ASOs make managing human resources an easier task for your business. They do so by giving you access to experienced consultants who have the knowledge and know-how to successfully manage all types of HR functions.

Benefits of Using an ASO

Now you know what an ASO in HR means and does. However, you might be wondering how those services translate into business benefits for you.

If you own a service-based business such as a construction business or healthcare business, working with an Administrative Service Organization could be hugely beneficial. As we’ve detailed above, ASOs can support various aspects of businesses, including:

  • Accounting
  • Payroll management
  • Bookkeeping
  • Scheduling
  • Logistics
  • Customer relationship management

ASOs can also provide additional resources and advice which help you organize your service-based operations and employees more effectively. Yep, this includes providing you with access to great insurance and workers comp policies. Aside from gaining access to affordable workers comp pricing (which we’ll dive into below), here are a few of the biggest benefits of working with an ASO.

Administrative Relief

By taking care of time-consuming tasks, ASOs can allow you to focus on the more important and strategic aspects of your job. this frees up hours each day for additional revenue-generating activities. Not only that, but the “outsourced” administrative service solutions they provide are customizable!

This allows you to benefit from specialized administrative expertise without having to hire full-time employees. When using an ASO, you don’t have to worry about dealing with complex systems or making mistakes due to a lack of experience. The ASO will handle everything for you in an efficient manner.

ASOs can help you stay organized by quickly responding to new administrative requests. They can also provide feedback on processes that need improvement. The best part? They’re doing all of this while reducing the costs associated with traditional HR and administrative methods.

Payroll Consistency

Remember just how important payroll consistency is? Not only do your employees care, but there are also compliance factors to keep in mind when it comes to payroll. If you struggle with payroll then you’ll love to know that working with an ASO can help give your business ongoing payroll consistency.

Thanks to the expertise of ASOs, you can rest assured that your team’s payroll is managed efficiently and compliantly. Likewise, great ASO providers handle mundane tasks and complex regulations. Again, this frees you up with more time to focus on other important business tasks.

Finally, when it comes to payroll, ASOs offer more flexibility than in-house staff. Your business has access to up-to-date regulations without having to worry about hiring or training additional staff members.

Ultimately, with an ASO helping manage your business’s payroll needs, you can trust that consistent accuracy, reliability, and punctuality are all part of your payroll processes.

Increased Product Offerings

Due to their network of providers and vendors, ASOs provide resources such as:

  • Technology
  • Compliance expertise
  • Customer service

All of these services help reduce administrative demands and help streamline HR processes. They also allow your business to focus more on your HR product offerings. This enables you to better serve your employees while also giving them access to improved benefits options.

In addition, ASOs are experienced in the complexities of employee benefit plan management. This helps ensure that you always remain compliant with all local, state, and federal labor laws. In sum, ASOs can be powerful allies when it comes to boosting HR product offerings and helping businesses reach their ultimate goals.

ASO vs. PEO: What’s the Difference?

People often get confused about the differences between ASO and PEO when it comes to HR. However, some key distinctions can help make it clear.

As you’ve hopefully learned by now, ASOs typically provide HR administration services, such as payroll and bookkeeping. They also may provide benefits administration and risk management associated with a client’s compliance needs. Their primary focus is employer-employee relationships and providing the paperwork support businesses need to remain compliant with the law.

PEOs go one step further. They co-employ staff on behalf of their clients. They’ll outsource entire HR departments so that clients like you can gain access to benefits like group health insurance and retirement plans.

So, ASOs provide administrative help only; with PEOs, clients outsource all of their HR functions.

When you work with a PEO, they can also help you manage employees from recruitment through termination. In most cases, they’ll also provide more comprehensive services around employee benefits and programs such as workers’ compensation insurance.

Are ASO Services Right for You?

We’ll admit we’re a little biased. However, we do believe in the value of ASO services. As a business owner, though, it’s important to determine if ASO services are the best choice for your organization.

Ask yourself the following questions:

  • How much money you would save by using ASO services?
  • Does your business have access to the necessary resources to handle these tasks?
  • If not, what resources can an ASO provide you with?
  • What would success look like with an ASO?
  • Is the ASO able to meet your specific needs?
  • How can ASO services impact your business in the future?

Researching ASO options and reading up on customer reviews can help you in weighing your options. Ultimately, ASO services are perfect for businesses looking to optimize their operations and spend resources more efficiently.

What to Keep In Mind

ASOs generally provide access to insurance and payroll services, as well as HR compliance assistance. However, ASOs leave it up to you to provide other HR support such as employee recruitment and engagement, onboarding and offboarding processes, and developing benefits packages.

On the other hand, PEOs offer much more comprehensive service packages that cover all of these tasks. They also can act as the employer of record for work visa applications.

Ultimately only you can decide which option best suits your business needs. Consider your current processes and resources closely then start weighing your options. However, if you need workers comp or other PEO insurance policies, a PEO is the best way to go.

PEO insurance policies provide several benefits for businesses. PEO insurance can:

  • Cover the cost of employee healthcare
  • Provide disability and workers’ compensation
  • Cover legal expenses
  • Simplify tax payments.

PEO insurance also offers you financial protection in case of any form of malpractice or liability claims filed against your business. All in all, this type of insurance is an invaluable and cost-effective way to protect your company from unexpected costs that could otherwise lead to financial disaster.

Get Quality Workers Comp Insurance 

So, what is ASO in HR? ASOs support your human resources staff in providing crucial administrative tasks. This includes filing, recordkeeping, payroll processing, personnel services, and communication with employees. Sounds great, right?

These services can help you optimize your business processes and save money. Whether you’re interested in ASO services or would like to inquire about our PEO policies and services, we’re here to help you thrive in business.

We offer a variety of workman’s comp solutions and other ASO and PEO-related services. Ready to get started? Get a free quote now!

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