Outsourcing administrative and HR tasks can significantly boost efficiency for many companies. Due to time, resources, or expertise constraints, some businesses find it advantageous to delegate these responsibilities externally. Administrative Service Organizations (ASOs) present a compelling option for outsourcing employment-related tasks.
An Administrative Service Organization (ASO) provides administrative and HR services, allowing businesses to efficiently manage these tasks without handling them in-house. ASOs offer a wide range of services, including:
While ASOs and PEOs provide administrative and HR outsourcing, key differences set them apart. PEOs offer a comprehensive package with a co-employment arrangement, making them the employer of record and assuming some employment risks and liabilities. In contrast, ASOs emerged in the late 1990s as an alternative, offering similar services without co-employment.
ASOs can be up to 50% less expensive than PEOs due to their flexible service model. Businesses only pay for the specific services they need, avoiding unnecessary bundled costs.
With an ASO, employers maintain complete control over employment responsibilities. This flexibility allows for a tailored approach to managing HR and administrative tasks.
ASOs bring specialized expertise and can handle tasks more efficiently than many in-house teams. This allows businesses to focus on core operations while ensuring administrative and HR tasks are managed professionally.
Determining whether an ASO is suitable for your company involves evaluating several factors:
Consider whether your company requires outsourcing for administrative and HR tasks. Assess the complexity and volume of tasks to determine if outsourcing can enhance efficiency.
Identify whether you need a full-service contract or only specific tasks handled externally. An ASO offers flexibility in choosing services, making it ideal for companies that do not need a comprehensive package.
If maintaining control over employment responsibilities is crucial, an ASO is preferable. For businesses seeking to avoid co-employment agreements while still benefiting from external expertise, ASOs provide a viable solution.
Evaluate your budget and compare the costs of ASOs and PEOs. ASOs often provide a more cost-effective solution, especially for businesses that need selective services.
Administrative Service Organizations offer a flexible, efficient, and cost-effective alternative for outsourcing HR and administrative tasks. By understanding the distinctions between ASOs and PEOs, businesses can make informed decisions that align with their operational needs and budget constraints. Whether you need comprehensive payroll services, HR solutions, or benefits administration, an ASO can tailor their offerings to support your company's unique requirements, ensuring you maintain control while enhancing efficiency.
Contact the best Administrative Service Organization on the West Coast. Located in Rancho Cucamonga, California, The Platinum Group will help you with your Payroll & HR department: Just call 909.466.7876 to speak with a customer service representative today!
Also, read A Guide to Simplifying the Payroll Process and How to Stay Compliant When Hiring and Onboarding New Employees, available on our blogs/resources page.