PEO Vs ASO: Determining Which Works for Your Human Resources Outsourcing
There are two basic models which businesses will use to outsource human resources, and these are PEO and ASO. If you are running a small business, then the PEO (professional employer organization) is the best. The PEO will highly depend on the co-employment model to offer their services. It is much advantageous by providing a full package to human resources. ASO (administrative service organization) on the other hand which is ideal for business with more than 100 employees. Here, there is no worker’s compensation, but the advantage is that it gives the best service provision. Wondering about PEO vs ASO? Here is how to determine the one that works best for your human resource outsourcing.
When looking at PEO vs ASO, PEO provides workers compensation but on the ASO aspect, there is no such compensation. PEO is also the best choice when it comes to risk management programs. When concerned about the unemployment issues, both of then function well. PEO charges for daily but the ASO will have to charge hourly rates. When it comes to tax handling, ASO is good for payroll taxes while the PEO will handle all the taxes.
Now after getting to know the differences that exist in PEO vs ASO, it is now the time to enlighten you on how you will be able to choose the best human resources outsourcing provider. From the discussion above, you will be able to see that the PEO vs ASO all have their own advantages and disadvantages too. First, you have to understand your problem well so that you are able to distinguish from PEO vs ASO which one to choose. Going for the HR firm which understands your problems well is what you need to do. If you are always busy in your business tasks, then choosing on the PEO is a wise idea.
Find out more about the certification of these HR firms that you want to hire before you actually make up your mind. Certification means that the firm is capable of managing its employees well. Make sure you also know more about the cost factor before making the decision. Make sure you are checking and comparing the charges first. The staff that the HR firm will have to offer you also is significant for you to check on. The staff is what will be working with you; hence, you need the best.
Your personal preference and business structure are the ones that will have a greater impact on the HR firm between PEO vs ASO that you should be able to choose. If you are running a big firm, then you need to know that ASO is the best option to have in mind. A decision on the HR firm depends on the understanding of what you want form the firm.