Tag Archives: ASO PEO HRIS “HR outsourcing” “employee leasing”

Advantages of Professional Employer Organizations (PEO)

One of the immediate advantages of PEO or employee leasing is that management’s time that was previously spent on personnel management and accounting can now be directed toward activities that effect earnings and profit.

In addition, a company that arranges with a PEO will find immediate economies of scale in providing benefits, especially healthcare. Other benefits, such as cafeteria plans, life insurance, disability insurance and 401k plans, are not often offered by smaller companies, but through a PEO, they are all available at no additional costs.

Lastly, a PEO or employee leasing firm provides assistance in defining personnel policies and compiling employee handbooks as well as compiling and recording employee files.

HRIS for small businesses

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.