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 (PEO) and is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development.

There are a lot of 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 strongly support the PEO model because we offer it, we encourage potential clients of PEO’s to look at cost comparison, opportunity costs, track record of service, and most importantly hidden costs.  Most PEO’s have them.

When Partnering with a PEO something to keep in mind is that although you will be off loading a lot of administrative weight that allows you to work ON your business instead of IN it, you will lose some flexibility and control.  To most, the trade off is worth it.

This leads me to the ASO Model.  As defined by Wikipedia as an administrative services organization (ASO) that 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 has the ability to offer the same service offerings but gives you the freedom to pick and choose what services you want and need verses having to go all in with the PEO.  You also have more flexibility and more control with the ASO.

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


Kyle Morris

SPMI My HR Professionals