We have seen this time and again. In fact, we just got off the phone with a prospect that has an HRIS that will not allow for performance appraisals. Okay, simple enough. Whatever system they employ would have a module or an add-on that would allow for this functionality, right?
Well, who’s to know. This prospect is a 50 person company that bought a system that is way over their heads. The do not have an on-staff IT person. The company they bought the system from does not return calls. So now they need to either buy another system that can “talk” to their current system or hire an in-house IT person (labor cost on that is at least $50,000 annually).
What they should have done, and this is what we recommend to our clients and prospects with less than 1,000 employees and/or an IT staff that is not willing to put a couple of hours per day into HRIS, is to go with a pay-as-you-go HRIS that includes payroll and support. The annual costs of this solution may look like more money at $250 – $400 per EE, but do the math on having to hire an IT person to run your HRIS.
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.
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