PEO vs ASO vs HRO

Do You Know What You’re Shopping For? 

If you are currently an employer shopping for an employee leasing solution, you may be stumbling across various acronymns within the industry such as PEO, ASO and HRO. While there are many similarities amongst all three, there are many differences, and not every option will be the perfect fit for your company and your employees.

Join us as we demystify these organizations, and help you understand which employee leasing solution or human resources outsourcing solution you may really be searching for:

  • PEO:  A Professional Employer Organization, also known as Employee Leasing, assumes and manages critical HR management and employment-related responsibilities including employee administration, compliance, unemployment and workers compensation claims, risk management, health benefits and payroll. Through this co-employment arrangement, you and the PEO contractually share employer responsibilities and liabilities.
  • ASO: An Administrative Service Organization, or ASO, could be considered HRO (Human Resources Outsourcing) but, ASOs are NOT considered a PEO because they do not operate within a co-employment arrangement, as an employer and a PEO do. There is no sharing of employer responsibilities and liabilities. ASOs can provide payroll processing, administration support and more. They can also provide options for and administer insurance and benefits packages—but these policies are written individually for each group. As a co-employer, PEOs provide clients with access to master policy benefits as a part of their large group.  ASOs simply help administer policies,by managing payroll deductions, providing claims support and reconciling invoices.
  • HRO: Human Resources Outsourcing refers to a variety of human resources companies that help clients offload some part of their administrative responsibilities, whether that be payroll processing or managing benefits.  On the contrary, PEOs provide a vast array of outsourced administrative services to the client, including payroll processing, insurance, employee benefit packages, HR support, and more.

PEO Advantage assists companies in truly defining what they are in need of. Finding the right organization, whether that is a PEO or not, is a lot of work. Some of the do-it-yourself web sites available will automate a few steps, but you will still need an experienced team to find the perfect
fit for your employees.

If you are currently shopping for a PEO, ASO or HRO, or perhaps just need some preliminary guidance in which organization would be the best fit, we would love to hear from you! Please fill out this form and we will get in touch with you shortly.

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