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Outsourcing Administrative Services – 8 Reasons Why ASO Might Work For You

Posted 05/15/22

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An Administrative Services Organization (ASO) makes it easier for businesses to focus and spend time on tasks that are specific to the organization. Administrative HR Services are individual or bundled solutions provided by Human Resource specialists and companies that focus specially on HR, payroll, and benefit administration.

Some businesses try to keep everything in house, but find themselves making unnecessary errors, spending valuable time on training and regulations, or hurting their company by focusing on tasks that can be outsourced.

It might be time to take a look at why an Administrative HR Service (ASO) company is best for business.

1. Save Time with Payroll Administration

If there is one thing that most small business owners have in common, they dislike handling payroll. Paying employees on time is paramount, so every employer has to make a decision.

  • Take the time to learn how to process payroll correctly
  • Find someone that will take care of payroll for you.

In many circumstances, you can save time and hassle by outsourcing payroll. Payroll specialists and administrative HR services offer various levels of payroll processing support. You can get a dedicated specialist to help handle paid time off requests, monitoring, and general payroll tracking.

2. Less Frustration During Tax Time

You aren’t the only one that gets frustrated with your payroll. All too often small businesses try to process their own payroll and their CPAs are stuck fixing the problems when filing their taxes.

It’s always best to keep your accountant happy. The easier job they have, the less questions and research you (and your company) need to do.

When payroll is processed correctly, the CPAs won’t charge you a premium to clean up your mess.

3. Proper Benefits Administration Makes Your Positions More Valuable

How many people do you know that stick with their jobs because they receive benefits? This is fairly common and the benefits your company offers makes a difference. Finding the right mix of benefits is critical to attracting talent and retaining employees.

Most growing businesses don’t know where to start when it comes to benefits.

  • How do you know what benefits to offer?
  • How do you coordinate with a benefits broker?
  • When should you coordinate open enrollment?

Working with a proper human resource team makes this process easier. When you outsource this part of the job, you enlist experts that have vetted many of the offers and also understand how to properly position your benefits that attract superior talent.

Proper benefit packages bring in better talent and can help you produce better results.

 4. Create an Efficient Pre-Employment Process and Fasttrack New Employees

What happens after you post a job on Indeed and start interviewing? Many businesses and executives think they have it all figured out – until they find themselves churning through talent or finding out that their interviews have already accepted positions elsewhere.

Hiring employees can be difficult, stressful, and costly (time and money).

Working with an ASO can help you prevent headaches and streamline the entire on-boarding process. When it comes to recruiting, you want to have a process to make sure there is no wasted time and effort. Outsourcing this administrative duty ensures you are compliant with national, state, and local hiring regulations and are properly screening (criminal, drug, DMV/DOT, credit, references).

You can also secure your new hire by having a proper conditional offer letter, which protects you in the case something would fall through.

5. Better Tracking and Maintenance of Personnel Files to Help You Stay Compliant

People and personalities can be difficult. Tracking your personnel files can be even more difficult.

Years ago, you were able to keep all of your documents in a filing cabinet. As your company grows, one folder or notebook is not enough. It’s certainly not efficient.

Keeping personnel information is important for many reasons. Having this information readily available – regardless of the location – is very important in our new remote work situation. Hiring and working with an administrative HR company gives you the best options for maintaining personnel files electronically. This makes it easier to find the information you are looking for and ensuring everyone and every file is meeting the compliance standards.

Having a dedicate hand and specialist to help organize your system will save you time and money. These specialists can ask you the right questions to determine the system that will work for you. If you don’t need the system with the expensive bells and whistles, they will know (and save you money).

6. Stay Out of Court and Properly Handle Employee Separations

Death, taxes, and you will need to terminate an employee.

No matter how much you say your company is filled with people you know, like, and trust – something will happen and you will need to know how to properly let someone go. We hope that it isn’t something you specialize in (or you need additional help with employee engagement or company culture).

When the time comes, having an administrative HR professional on your side makes life easier and helps you avoid any legal trouble in the future.

Processing termination paperwork and following an exit checklist doesn’t just apply to employees you terminate. You will have other good employees that want to move on and you will need to understand benefits/COBRA, payroll, and everything else related to employee exits.

7. Make a Good First Impression with On-Boarding

There is nothing worse than starting a brand new job and not receiving any direction. Sometimes you will be handed a single tax form to fill out. Sometimes you wonder if you are the company’s first new hire. This is not a good way to start your new employees’ career with your company.

When you work with an administrative HR company, you receive an organized process that ensures you process all of your new hire paperwork properly and professionally.

You will have all of the necessary forms (I-9, direct deposit, non-compete agreements, employee info, multi-state employee tax withholding compliance, etc…) and you will have direction on how and when to have your new hire complete each form.

8. Have the Professionals Handle FMLA/Leave Administration

Do you have questions about the Family and Medical Leave Act? You are not alone. FMLA provides your employees up to 12 weeks of unpaid, job-protected leave each year.

  • How do you process this?
  • How do your employees qualify?
  • How does this impact your business?

Working with an ASO can help make this process easy and compliant.

ASOs can help issue and collect the required forms. ASOs have processes in place to ensure you are properly tracking and monitoring leaves of absences. What is confusing for a common small business owner is just another day at the office for an administrative HR company. Outsourcing your HR can save you the frustration and hours of research for FMLA/LOA.

How Do You Know What You Need with an ASO?

Not all companies need help with every item listed. Many ASOs and HR Outsourcing firms provide customized offers that will help your business. The goal is to save time and save money – while having experts and specialists do what they do best. Instead of the one-size-fits-all approach, you should have a detailed conversation about your goals, frustrations, and expectations. Finding the right mix is important to making sure you get the help needed, in the areas you need the most support.

AlignHR offers several flexible plans to help assist companies with HR, payroll, benefits, and compliance. We take care of all those pesky HR, payroll, and benefit administrative tasks your team dreads by providing support and execution of the following administrative work, using client technology/systems or ours, focused on quality service, accuracy, and timeliness.

If you are interested in learning more about AlignHR and our Administrative HR Services (ASO), reach out. We would love to hear from you and setup a discovery meeting.

Customized solutions to simplify and streamline your organization’s administrative HR tasks