PEOs and ASOs: The Pillars of Modern Business

Facebook has millions of daily users — yet it creates no content.

Uber transports millions of people in cities around the world — yet it owns no taxis.

Airbnb provides accommodations in thousands of cities and dozens of countries — yet it owns no hotels.

NetFlix provides online video for countless users around the world — yet it owns no theaters and only recently started to create its own content.

Facebook, Uber, Airbnb, and NetFlix have all found a place between the consumer and the provider. They concentrate on what they do and they do it well.

Outsourcing is similar. There are hundreds of Professional Employer Organizations (PEOs) that take on all payroll, benefits, and HR responsibilities and there are hundreds of Administrative Services Organizations (ASOs) that handle parts of a company’s day-to-day workload. Both PEOs and ASOs provide the bridge to help client companies and their worksite employees concentrate on their core business and provide for their end customers.

 

Outsourcing Options

Outsourcing is not the only available option for contemporary companies. The most common options are 1, Do It Yourself or 2, HR Outsourcing with a PEO or ASO.

 

The DIY Approach

It’s a lonely world when you don’t have enough help.

It is not so long ago that the large corporations had career employees, hosted annual picnics, and provided full and generous pensions, all under the supervision of a hands-on Human Relations department. Today’s companies — technology startups, restaurants, law firms, etc. — don’t have the luxury of creating and staffing an in-house HR infrastructure. The intense competition inherent in today’s business world requires focus on the final product. That is why small and mid-sized companies forego worrying about health insurance; withholding and paying employment-related taxes; complying with hundreds of employment laws, rules, and regulations; obtaining workers’ compensation insurance coverage; COBRA; ADA; OSHA; EEOC; FICA; FUTA; etc. Many small and mid-sized companies use HR Outsourcing instead.

 

The Outsourcing Approach — PEO or ASO

Clearly, Human Resources takes care of a lot of essential parts of a company. The question is how many resources should be dedicated to that expertise. Who should become the expert in liability and compliance? When should a company start a retirement program? Just a 401(k) option? Will the company match employee contributions? An Individual Retirement Account, too? Or, when does a company become big enough to hire a dedicated HR person? Ten employees? 20? 50?

Most are not expert in workplace best practices, nor do they want to be. That is where professional help makes sense. PEO or ASO models enable companies to rid themselves of many in-house tasks in order to concentrate on their field of expertise.

There are more than 900 different HR Outsourcing companies in the United States alone. These provide access to the comprehensive benefits that much larger companies enjoy without using up too many resources. HR Outsourcing companies fall into two basic categories: PEOs and ASOs.

 

What is a Professional Employer Organization (PEO)?

The Professional Employer Organization model is an all-in-one solution. Human Resources. Benefits. Payroll. Recruitment. Compliance. Workers’ compensation. PEOs take care of the whole spectrum of services in order to increase employee productivity and engagement.

Startup technology companies are a perfect example of those who would benefit most: The general office work is outsourced so that these companies can focus on their own growth and effective revenue generation. Management has the final say, but the PEO removes burdensome tasks by handling the daily back office work.

The best PEOs offer cloud-based platforms for easy integration with client companies and their worksite employees.

As companies grow, the PEO also acts as a co-employer, absorbing a lot of responsibility and liability.

Technology has made the PEO relationship even more efficient and effective. Company administration software enables PEOs to help clients consolidate their operations with a solid technical foundation for all of their many moving parts, including seamless communication, centralized operations, standardized procedures, the efficient handling of benefits, comprehensive human resources support, the maintenance of a reliable payroll system, the elimination of the inefficiencies of manual processes, transparency, and superior service to management and employees.

There is nothing new about this arrangement. The PEO industry is already huge. There are hundreds of PEOs that are being used by thousands of companies employing around 3 million people in the United States and generating gross revenues of between $136 and $156 billion.

Industry reports show that, since 2010, the growth of businesses that use PEOs is 9 percent higher than among other small businesses (based on the Intuit Small Business Employment Index) and 4 percent higher than overall U.S. employment growth. Businesses that use PEOs have 10 to 14 percent lower employee turnover, and are 50 percent less likely to go out of business.

Every PEO is slightly different just like every business is unique, but they generally provide:

  • A Human Resources department, including administration and support for the entire workforce
  • Employer of record status, with a federal tax ID, for some of the company’s employees, thus allowing for a shared employment / co-employment system;
  • Protection against some risk, liability, and occupational hazards, including Employment Protection Liability Insurance (EPLI);
  • Consolidation of state and federal unemployment taxes;
  • Retirement systems, including 401(k) and Individual Retirement Accounts;
  • Social Security management;
  • Access to technology that is not affordable for small companies, including company-management platforms, time and attendance counters, employee dashboards, etc.;
  • Payroll processing and the completion of payroll taxes;
  • W-2 form preparation and distribution;
  • Management of a wide range of benefits administration, including health, dental, vision, life, and workers’ compensation insurance;
  • Verification that workplace policies are in compliance with federal, state, and local regulatory standards;
  • Best practices gleaned from years of professional experience;
  • Direct and readily available support for all human relations situations;
  • Numerous paperless options to save resources and money;
  • Fully licensed and regulated status in the 38 states where it is necessary;
  • Business plan development and guidance;
  • Assistance with creating office policies, including attendance systems, paid time off policies, etc.
  • Development of guidelines for home office privileges for employees;
  • Establishment of branch offices;
  • Soft skills instruction;
  • Leadership training;
  • Career transition options for departing employees;
  • Grant writing expertise;
  • Workplace safety regulations.

 

What is an Administrative Services Organization (ASO)?

The Administrative Services Organization model is a more traditional business relationship. It is basically an a la carte version of the PEO model: only some services are outsourced. Some companies, for example, only want help with payroll. Other companies want to also establish a benefits program. Ambitious groups want help with establishing vesting options. Even the old-school behemoth manufacturing companies used a payroll processor instead of doing it all in-house.

Nevertheless, the basic principle is the same: management can outsource tiresome tasks to a professional organization in order to have more time to work on their core business.

Unlike PEOs, an ASO does not become the employer of record for any employees and does not take on any liability. ASOs take on specific tasks for their client companies, including every feature listed for the PEO model. General differences include:

  • The client generally outsources one or more services, oftentimes to multiple vendors;
  • Savings result from using strategic providers;
  • The client retains employees under its own Federal Employer Identification Number (EIN) for the purposes of payroll taxes, benefits, and reporting;
  • The client may negotiate its own insurance packages;
  • The client uses its own policy and rates for workers’ compensation coverage, including the required down payment and liability for audits.

Google organizes information. Travelocity and Kayak sort travel prices. Similarly, HR Outsourcing companies provide the professional foundation so that companies can concentrate on their core product.

PEOs and ASOs may be the answer for your business.

Worklio Makes Numerous Mid-Summer Updates

A long list of items have been added and updated to almost all facets of the Worklio platform for Version 1.25, especially for Access Rights, Time Off, the Attendance module (both the Time Sheet method and the Geolocation feature), the Dashboard, and Onboarding.

Worklio prides itself on being user-friendly. The changes of Version 1.25 were inspired by and address client-company comments.

Most users will not notice any of these changes, but the usablity has been improved significantly. Specifically,

  • Access Rights — The Worklio platform has added the ability for an external administrator to have either full access or limited access to the entire system to make it easier for companies to grant access to consultants, accountants, etc.
  • Time Off — Links to make time off requests have been added to the calendar.
  • Attendance / Timesheet — Clients can now switch between Time Sheet and Time Manager methods for managing Attendance details.
  • Attendance / Geolocation Module — The Geolocation Module has been fine-tuned, including the ability to set the operative distance for where employees can sign in for work in either meters or yards.
  • Dashboard / New Design — Slight additions have been made to the menu structure, including access to Employee Details through the Company tab and My Info through the Me tab. A default dashboard has been established for when an employee starts on the platform; they can get to work immediately with the most important and popular widgets preset. Later, each dashboard is fully customizable. The Company Ideas module has been redesigned to make it easier for you to get valuable feedback from your employees.
  • Onboarding — The development of an overview page that does not include the Worklio navigational menu. Easier access to the Denial of an Offer letter. The verification of an address has been added to the importation of employee addresses from a spreadsheet.

Additionally, downloadable reports have been touched up with access rights and location settings. Email reports have been streamlined to deliver important information in a more timely manner.

Not every company is affected by each of these improvements. Contact your administrator to request the addition of these features.

For more information and a detailed list of all of the past Worklio version updates, go to the Release Board.

Worklio: A New Era

 

Old software and inconsistent support will soon be memories of the past. Prepare for a new way. Prepare for efficiency. Prepare for savings.

Prepare for a disruption:

A new era has begun for the PEO market.

Worklio will soon introduce its modern and powerful software at the NAPEO 2017 Annual Conference & Marketplace on Sept. 6 to 8 at the JW Marriott Orlando Grande Lakes in Orlando, Fla.

The Worklio booth is #706/708.

Life will never be the same and business will only be better.

The Worklio Advertisement in PEO Insider.

The Worklio system connects the PEO, its client companies, and their worksite employees in a comprehensive Human Capital Management (HCM) solution. Everything is compatible. All of the data is consistent. And everything exists in an enclosed, secure system.

The Software-as-a-Service platform is custom-built on the latest Microsoft .Net and MS SQL 2016 technology platform, designed and optimized for the Microsoft Azure Cloud, and available 24 x 7 across all devices. The Worklio solution is based on a solid foundation of: Payroll Administration, Workers’ Compensation, a Customized Report Writer, Benefit Management Tools, Time and Attendance, Electronic Onboarding, Billing, Accounting Integration, and Mobile Apps. The design is intuitive and user-friendly, making information easy to find and procedures simple to understand. Complicated functions are simplified with step-by-step instructions. Customization allows for streamlining daily tasks. Customer Support is always professional and available.

The Worklio system saves time through efficiency, saves money through consolidation and integration, and makes business more successful through collaboration.

Worklio — a new beginning for the PEO industry.

 

Worklio

HR, Payroll, and Benefits

The Modern Teamwork Platform

 

10 HR Solutions for Businesses

With small and mid-sized businesses, one person is the founder, CEO, COO, and CFO all rolled into one. That means that they have a lot of work, responsibility, and stress.

Invariably, the most complicated part of that schizophrenic leadership role is dealing with Human Resources. HR is often overlooked in growing companies, but there are a lot of potential problems that can lead to direct costs (hiring new people, litigation, etc.) and indirect costs (loss of efficiency, poisoned company culture, etc.) that can jeopardize the entire enterprise. 

Everything in HR — recruiting, interviewing, hiring, paperwork, onboarding, basic policies, performance, company culture, compliance, and more — starts and ends with people and how you deal with them.

  

1 Recruiting Talent

The cost of advertising, interviewing, screening, and hiring can be excessive, and the process can take countless hours over several months. Don’t rush through the process. Make detailed and specific job descriptions to focus the search.

A job description establishes the foundation for finding the right employee.

  

2 Interviewing Potential Candidates

It is essential that you are correct about your hiring decision. Replacing a salaried employee costs, on average, between six and nine months of salary. Establish a consistent interview process. Make sure to decide on some answers:

  •  How much time will you spend with each candidate?
  •  Who else will sit in?
  •  What questions will you ask?
  •  What skills does the position require?

 

3 Hiring the Best

Big companies may have a good reputation. Small companies can provide nice perks to lure top talent.

  • Work from home.
  • Flexible hours to take the kids to swimming lessons.
  • Relaxed dress code.
  • Small-group camaraderie.
  • The chance to be there at the start of the company.
  • Exerting influence and making a difference are often more important than money.

 

Home office is comfortable, so it can be a perk to lure top talent.

 

4 Completing Official Paperwork

The classic three-file HR system — official paperwork, personal paperwork, and medical documents — is time-consuming and inefficient. Company management software allows employees to fill in their own information and update it whenever necessary. A physical signature is old school; an electronic signature is more efficient, faster, and just as binding.

  

5 Get the New Hires Up To Speed

Don’t skimp on training because investing in employees is an investment in the company. Plan ahead of time to be most efficient: Who will do the initial training? Who will double-check the early work? After the initial training, it is definitely important to keep people up on the latest know-how and trends.

 

The best companies are always training employees in best practices.

 

6 Company Policies

Small companies may not have an official employee handbook, but they should at least establish policies for work hours, dress code, social media use, etc. More important regulations must also be in place, including risk management, workers’ compensation, dispute resolution, and safety inspections.

 

7 Assess the Performance of the Employee

Regular feedback, hopefully, will fix any problems. But sometimes you just have to give up on an employee. When do you pull the plug? Does it take several people to agree with the dismissal? Three unsatisfactory performance reviews? Whatever the guidelines, thorough documentation is protection against a lawsuit.

 

Performance reviews start a paper trail for each employee that can provide the documentation to protect against a lawsuit.

 

8 Dealing with Company Culture

When people are not happy, their productivity decreases, co-workers feel it, and customers sense it. Do whatever you can to keep everyone happy: a random Friday off; a pizza party; a small bonus; happy hour drinks. Turnover is a killer. Any change in personnel affects the bottom line and the overall mood of the company.

 

It’s always possible to have a little bit of fun — even at work.

 

9 Compliance

The government and different organizational bodies are constantly considering and reconsidering laws and regulations. Posting federal and state notices is required. Make a list of all of the regulations that you need to follow, and make sure to stay on top of them.

 

10 General Know-How and Experience

There are a lot of more complicated questions that always come up for growing businesses. Do extensive research and find an expert to help. Is it better to hire a contractor instead of a normal full-time employee? Which retirement system is the best? Do you need a dental plan? How do you create a vesting program? Can you reduce your tax burden? What software is best for company management?

 

Who is the software expert in your company?

 

These are all important aspects of making a company into a success. Help is available. Worklio is a company that works hand in hand with Professional Employer Organizations to take care of all the day-to-day tasks that can make or break a business.

Vertical Navigational Menu Improves Access

Worklio has increased the usability and functionality of the navigational menu of its company-management platform as part of the release of Version 1.24. There is also a useful addition to the Time Sheet feature.

Navigational Menu

Specifically, the main icons of the “ME” and “COMPANY” tabs have been moved to a vertical column on the left side of the screen. Secondary links remain across the top. Users can expand or contract the left-side navigational column, and more complicated menu structures, like HR in the Company tab, have a dropdown for easier access to important links. This update to the user interface provides a better user experience and improves the workflow for everyday use.

One significant change affects the “Dashboard” icon. The house graphic is no longer on every page; instead, users simply click on their company logo in the upper left corner to return to their personal Dashboard.

These changes will provide more consistency with other popular applications and make the platform more intuitive and user-friendly.

Navigational Menu
Navigational Menu

Time Sheet

The Time Sheet function has been expanded to provide client companies with another option for reporting time and attendance events.

There are two methods to access the Time and Attendance feature: real-time additions or multiple-event data entry.

  • The Time Manager method allows employees to report their hours using the daily clock in / clock out buttons to capture attendance data in real time.
  • The Time Sheet method allows employees to self-report their hours at any time before the end of the current pay period.

Not every company is affected by each of these improvements. Contact your administrator to request the addition of these features.

Worklio prides itself on being user-friendly. The changes of Version 1.24 were inspired by and address client-company comments.

Time Sheet
Time Sheet

Worklio Receives Two ISO Certifications for Security and Quality

Worklio has received ISO 27001 certification for information security management and ISO 9001 certification for quality management as it continues to grow in its role as a leader in the field of company-management systems for small and mid-sized businesses.

Worklio is a disruptive, all-in-one, cloud-based payroll and HR platform that is changing the way businesses operate. Tailored specifically for the small and mid-sized business market, Worklio provides employers with a centralized and fully integrated system of record that covers all aspects of HR administration, including time and attendance, payroll administration, insurance, employee benefits, onboarding, and compliance. Worklio currently employs over 80 talented individuals and stretches across two continents and three countries.

“Security is obviously something that our customers need and want,” said Zdenek Valach, the Chief Technology Officer. “The news is filled with stories about hacking and computer crimes. Since the beginning of the development of Worklio we have paid special attention to the security of the information in the system. With the granting of ISO certification, we now have tangible proof that we have done our job perfectly. We are growing quickly as a company and this will be a nice present for our customers and a nice boost into the new year.”

TayllorCox, an international certification company, conducted the process and officially awarded the certifications on Dec. 21. Both certifications were dated Dec. 16 and both are valid until Dec. 15, 2019.

ISO, the International Organization for Standardization, maintains internationally respected standards for business. ISO/IEC 27001:2013 certification provides requirements for an information security management system (ISMS) in order to enable organizations to manage the security of assets, such as financial information, intellectual property, employee details, and information from third parties. ISO 9001:2015 sets out the requirements of a quality management system to provide guidance and tools for companies that want to ensure that their products and services consistently meet customer’s requirements, and that quality is consistently improved.

“Receiving these ISO certifications is an important step for Worklio,” said Ian Halliday, Chief Operating Officer. “We are in a competitive market and our clients demand and deserve the utmost from the tools they rely upon to manage their businesses. This is a key step for us as we continue to grow and attract clients to our intuitive management system.”

For more information, visit www.worklio.com or call (844) 996-7554.

Top Navigation Menu Redesigned

Worklio has released Version 1.23 to increase the usability and functionality of the overall company-management platform with a new menu structure. Key upgrades were also made for better Open Enrollment functionality in the Benefits module, a redesigned Social Feed, and a new Company News widget.

Clients need only to log in as usual to access the new design. Not every company is affected by each of these improvements.

The Worklio platform has the same overall visual presentation but the module icons in the top navigational menu have been rearranged into a more useable and transparent order. The most significant change, which was prompted by client feedback, creates new icons for Social Media and Company News, and two tabs: one for every-day personal use (“ME”) and the other for more general information (“COMPANY”). Easily defined access rights determine to which modules each employee has access.

Administrators, specifically, will enjoy more connectivity because they will no longer have to switch roles to access specific modules; they simply have additional icons in their menu.

 

New Menu Structure

The module icons of the Worklio platform have been split between two tabs: “ME” and “COMPANY”.

The “ME” tab of the platform has the more individual-related modules, including Time & Attendance, Time Off, and Task Management. It also includes access to the redesigned Social Feed and the new Company News module.

Top Navigation Menu
Top Navigation Menu

The “COMPANY” tab is more comprehensive and includes the more general modules that employees probably do not use every day. The exact layout of the icons in the company tab is determined by the access rights for different roles in the company. Overall, the changes include:

  • The company page dashboard — Access to the Social Feed, Company News, Calendar, and Who is Out.
  • The HR module — Attendance (including Attendance Report, Attendance Events, and Pay Periods); Time Off (including Requests); Talent (including 5-15 Reports, Mood Indicator, and Company ideas); and Asset Management.
  • The People module (previously known as the Workforce module) — Active employees and their current data; Onboarding; Terminated employees; Discipline Records; Organizational Charts; and Work Groups.
  • The Company module — Basic information about the company, like addresses and general phone number.
  • The Analytics module — Online Reports, Downloadable Reports, and Audits.
  • The Settings module — Access to adjust specific company settings on the Worklio platform.

 

Open Enrollment

The new Open Enrollment system makes it easier for clients who use the Worklio Benefits module. Instead of repetitive questions and back-and-forth communication between HR and the employees, the process has been streamlined so that each individual is empowered to take control of their own benefits requirements.

The new Open Enrollment feature is a step-by-step process that takes employees through each decision, simply and paperlessly. Medical, dental, life, disability, dependent information — it is all taken care of one question at a time.

 

Social Feed Redesign

Work is work, but work is also chit-chat. Some personal communication is important for a lively, healthy work environment and the redesigned Social Feed is a great way to improve the general atmosphere in the company.

Social Feed

Employees can now post new-baby announcements, link to holiday party photos, invite departments for a 5K charity race, brag about how their college football team won the big rivalry game — and post a picture of the final scoreboard to really rub it in. Leave the important business information for the Company News widget; keep the office light with the Social Feed.

There is no learning curve: If you know how to use popular social media sites, then you know how to use the Worklio Social Feed. Post messages, attach photos, like comments, and respond. Then get back to work.

 

New Company News widget

Anything and everything that pertains to the business of the company and employees on a professional level has a place in the Company News widget. The introduction of new management. Sales department success. Employee promotions. Holiday schedule confirmation. Changes to the employee handbook. A quick link to the monthly newsletter.

It’s easy to use: select the audience, write a headline, and write the message. Click Send and your announcement is made. Every user will get a notification in the new top navigational menu.

News Widget

Worklio Opens New US Office in Arizona

PHOENIX — Worklio selects Phoenix, Arizona as the location for its new United States office.

Worklio is a disruptive, all-in-one, cloud-based payroll and HR platform that is changing the way businesses operate. Tailored specifically for the small and mid-sized business market, Worklio provides employers with a centralized and fully integrated system of record that covers all aspects of HR administration, including time and attendance, payroll administration, insurance, employee benefits, onboarding, and compliance. Worklio currently employs over 80 talented individuals and stretches across two continents and three countries.

With over 15 years of experience developing workforce software in Europe, Canada, and the U.S., Worklio chose Phoenix for several reasons, including the expanding business market, the low cost of operations, and the deep talent pool of college graduates.

“The most exciting factors are that Arizona is quickly becoming the new hot spot for tech companies and the wealth of talent available in the area,” said Nick Deutsch, Director of Sales. “Establishing this office in Phoenix gives Worklio the ability to further strengthen our U.S. presence and better serve our clients.”

The value that Worklio provides extends past helping businesses manage their employees more efficiently. Its wealth of experience in health insurance services and technology is a key factor for employers.

“HR technology has made significant strides in how businesses manage their human capital. The Worklio workforce management capabilities are the best-in-class available today,” said Ian Halliday, Chief Operating Officer. “With the opening of this new office, we have established a solid launch point to allow us to effectively service the U.S. market and ensure that every client has access to the latest cost-containment strategies, compliance management, and comprehensive benefits packages for employees.”

With this new office, Worklio will be bringing new jobs to the Valley of the Sun. This includes expanding its sales, account management, marketing, recruiting, and insurance divisions throughout 2017.

“This is a great opportunity for us,” Deutsch said. “We’re looking forward to growing as an active member in the business community — not to mention, enjoying the great weather.”

For more information, visit www.worklio.com or call (844) 996-7554.