PEO, ASO, HRO – Oh No! What Do All of These Mean? Part 1
Posted on 11.07.2018
There are many HR options available to the marketplace these days, and while that creates great competition and choice, it also creates a great deal of confusion.
What is a PEO?
A PEO is a Professional Employer Organization. Employers are able to bundle payroll, employee benefits, basic HR administration, and Worker’s Compensation together with one provider. Your employees become employees of the PEO, and thus the PEO assumes limited liability for employment and compliance risks. Your company must adopt the PEO’s policies and practices with little opportunity for customization. PEO’s typically charge by headcount (PEPM, Per Employee Per Month), or a percent of total payroll.
As companies grow, their needs get more complex, and they tend to have greater strategic HR challenges the PEO is not designed to handle. In general, PEO’s offer HR advice as part of their bundle because it is expected of them to do so. In most cases, it is not their core competency nor a revenue-generator for their organization.
In the coming weeks, we’ll take a look at ASO and HRO models and how these differ from the Achilles Group Fractional HR approach.
At Achilles Group, HR advice is our core competency. Click Here to learn more about our Fractional HR approach.