What is an ASO (and Does Your SBM Need It)?

Regardless of the size of your business, finding the right HR solution can be a challenge. Should you staff an in-house team, or would your resources be better allocated to an outsourced solution? And if so, which type of solution is right for your organization?

While there are several approaches your SMB can take to fill its HR needs, a common one many organizations use to streamline administrative processes is to partner with an administrative services organization (ASO) or a professional employer organization (PEO). Below we’ll discuss what an ASO is and help you identify whether your SMB should consider partnering with one.

What is an ASO?

By definition, administrative solutions outsourcing (ASO) is a business management model where a third-party provider takes on the responsibility of handling specific administrative tasks for a business. For example, many ASOs specialize in providing core HR functions like payroll and benefits.

Unlike a professional employer organization (PEO), however, ASO providers don’t become co-employers. Rather, they serve as outsourced partners for various administrative functions.

Should Your SMB Partner with an ASO?

Determining the best solution for your HR needs takes some time and effort. As you explore a possible partnership with an ASO, keep these considerations in mind and don’t hesitate to contact us at The OIS Group for help.

• Flexibility and scalability – ASOs allow SMBs to choose specific administrative functions to outsource. This means you have a high level of flexibility with how you build your partnership. ASO services are also scalable. You can customize the scope of services you need now – and adjust in the future as your business evolves.

• No co-employment relationship – This means your SMB remains the employer of record. It also means your business retains all employment-related risks and liabilities without the benefit of group purchasing power.

• HR support – ASOs offer comprehensive HR support, including assistance with employee relations, training and development, and strategic HR planning. They also offer support in managing risk and ensuring compliance.

Outsourcing HR services frees up your time and resources so you can focus on your core initiatives. It can also be a cost-effective and efficient way to provide HR support without the need for a full in-house team.

As you consider your business’s needs, an ASO may be the right solution for you. You might also evaluate whether a PEO partnership will help you gain even more competitive advantages for your SMB. To learn more about HR outsourcing services and where to start when looking for a partner, turn to us at The OIS Group. We offer clients a full review free of charge so we can find the right solution for them. To learn more, contact us today.