PEO and ASO: What Are They and Are They Right For You?

What is a PEO?

According to Wikipedia, the definition of a PEO is a professional employer organization. It is a firm that provides a service under an employer who can outsource employee management tasks. Tasks such as employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development.

There are many options out there when it comes to partnering with a PEO. However, not all are the same and provide the same level of service. Although we support the PEO model and offer it, we encourage potential clients to look at cost comparison, opportunity costs, track record of service, and hidden costs. Most PEO’s have them.

When Partnering with a PEO, keep in mind that although you will be offloading administrative weight, you will lose some flexibility and control. To most, the trade-off is worth it.

ASO Model

As defined by Wikipedia as an administrative services organization provides outsourced solutions to meet the administrative and HR needs of the client, with the client retaining all employment-related risks and liabilities.

The main difference between the two is, very simply put, flexibility.

The ASO model can offer the same service offerings but gives you the freedom to choose what services you want and need versus having to go all-in with the PEO. You also have more flexibility and more control with the ASO.

My HR Professionals offer both models and are eager to serve you in whatever way fits your company best.

Kyle Morris

479-806-9976

KyleM@SPMIHR.com