What to Look For in HRIS Software For PEOs And ASOs

A human resource information system (HRIS) automates HR activities and processes using modern information technology.

Today’s most advanced HRIS systems for Professional Employer Organizations (PEOs) and Administrative Services Organizations (ASOs) are 100% cloud-based and designed specifically for PEOs and ASOs to provide HR services to their clients, while also automating many of the financial and client management functions required by PEOs and ASOs to service their clients efficiently and cost-effectively.

These systems give PEOs and ASOs, and their clients, more efficient ways to manage employee information when recruiting, hiring, onboarding, and managing payroll, benefits, skill analysis, and advancement of employees. They provide detailed dashboards and reports that make it easier for managers to make hiring and management decisions, and to generate important and accurate information for tracking, compliance, and audits.

The best HRIS software for PEOs and ASOs is both cloud-based and mobile-friendly. PEOs and ASOs, and their clients, can access management and self-service dashboards from any device at any time. Employees who wish to request time off or make changes to their information may do so using their self-service portal. This reduces the amount of data entry required by HR personnel. These same portals can be used to post and exchange company information, such as announcements, company policy documents, and external links to important information regarding regulations or benefits. This gives employees one place to look and eliminates the chaos caused by multiple document repositories and information that can go out of date.

A good HRIS system also provides a way for PEOs and ASOs to track applicants for clients. Applicant tracking software should cover the full range of applicant and employee lifecycle, “from hire to retire.”

Because PEOs and ASOs provide services to clients, the documents, checks, dashboards, and reports used by the client should be branded with the client’s logo and look and feel. The User Interface (UI) on the client side is a critical factor to satisfaction with the software. Customers should have a pleasant and pain-free user experience when accessing the self-service side of your HR technology. The user interface should be appealing and easy to navigate, the menus should be organized in a logical, intuitive manner, and the customer should be able to search for and find whatever they need, whether it is a field form or an employee record.

What PEOs and ASOs need in an HRIS

So far we’ve focused quite a bit on the customer side of the equation. But PEOs and ASOs are service businesses whose profitability and effectiveness depends on their ability to provide those services with a minimum of manual and redundant activities. In addition, the more you can handle inside the system, the greater the efficiency. Your system should enable you to quickly add new clients to the database, customize what the client will see, and set up automatic and custom billing. Your HRIS system should be able to exchange information with the accounting system you’re using, and to be able to import data from other systems when you first start out.

You also need to provide your benefit carriers and other providers with timely and accurate data updates, such as 401K and benefits information. Failing to do so may leave a worksite employee without coverage, or cause your company to pay for coverage for an employee who was terminated in the last month. The process should be automated and there should be audits available to ensure accuracy.

HRIS software is complex. The best systems for PEOs and ASOs have been created by people who have been in the HR business – and specifically the PEO or ASO business – for many years. They understand the intricacies and interactions involved, within the system itself, in the integrations with other systems, and in successful client management.

NAPEO – the National Association of Professional Employment Organizations – reports that the 2.7 to 3.4 million employees who benefit from PEO services is larger than the size of the entire agriculture/forestry industry, and close to the size of the federal government, education sector, or the information sector. The size of the PEO industry is between $136 and $156 billion, as measured in gross revenue. Bringing efficiency to these PEOs and ASOs is the mission of PrismHR.

Joining PrismHR in 1994, Craig Babigian was one of the pioneer software executives who helped shape technology solutions for the PEO industry. He has been instrumental in cultivating the PrismHR software family. Craig is uniquely qualified to help PrismHR maintain and extend its forerunner status as he leads ongoing product development. Prior to PrismHR, Craig was the Controller for a multi-state service company. He served as a consultant for a Canadian company that had purchased a Boston-based healthcare laundry. Craig is a board member of the ESAC, a PEO accreditation organization, and past board member of NAPEO, the leading organization providing strategic direction to the PEO industry. He is also an active member of Massachusetts Technology Council. Craig holds a BS in Accounting from Bentley College.