Human Resources Outsourcing

Managing different aspects of employee management processes on a day-to-day basis is a complicated task—one that requires a substantial amount of energy, time, and expertise. By adopting a sound and cost-effective human resources outsourcing solution, you can transfer this responsibility to a third party and focus solely and completely on what you do best- managing and growing your business.

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Why do so many companies opt for some form of human resources outsourcing?

The reason is simple: hiring and developing the knowledge and expertise that is required to efficiently manage various employee management tasks on a daily basis is costly, energy sapping, and time-consuming.

Using a human resources outsourcing model is cheaper and frees the employer from the burden of running various employee management tasks. Outsourcing various human resources tasks provides the employer with enough time and energy to efficiently run the business.

What are the different human resources outsourcing models?

The two common HR outsourcing models are: Administrative Services Organization (ASO) and Professional Employer Organization (PEO).

Both soluions provide companies an opportunity to outsource various functions of employee management such as payroll administration and tax compliance, various human resources functions, worker’s compensation administration, and employee-benefits administration in a cost effective manner. (See also ASO vs. PEO Comparison).

The ASO Solution generally allows you to successfully implement the following:

  • Outsource employee management processes such as employee-benefits administration, payroll administration and tax compliance, retirement services, and human resources management
  • Retain your employee benefits or ask the third-party to quote, implement, and manage benefits on your behalf
  • Retain your own SUTA rate
  • Retain your own worker’s compensation policy or ask the third party to quote, implement, and manage them on your behalf

The PEO Solution allows you to successfully implement the following:

  • Outsource employee management processes such as employee-benefits administration, retirement services, payroll administration, tax compliance, retirement services, worker’s compensation administration, and human resources management
  • Customized benefits for your company, generally through a single group health insurance carrier
  • Come under PEO’s SUTA rate
  • Utilize the PEO’s workers' compensation policy

Both ASO and PEO solutions have certain distinct advantages. The major difference between these two models is that unlike the PEO Solution, the ASO Solution has no employee management relationship between the provider and your employees. The PEO is a co-employment relationship whereas the ASO is not.

Need more information? View related content:

To learn more about Solid Business Solutions human resources outsourcing solutions for your business or to speak with a representative, contact us today at (888) 762-2075 or complete our online quote request form above.

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