How a PEO Technology Solution Can Help Scale Your Business and Save You Money

How does a PEO use HR technology?

PEOs like G&A Partners use HR technology to enhance the services they deliver to small and mid-sized businesses. When you partner with a PEO, you gain access to state-of-the-art HR tools that streamline and automate processes, increase productivity, and improve compliance.

One primary advantage of working with a professional employer organization is the ability to tap into a wealth of HR expertise. At G&A Partners, you gain access to a team of experienced and knowledgeable HR professionals who specialize in payroll, benefits, compliance, HR management, workplace safety, and additional HR functions.

As part of your agreement – and because PEOs are able to leverage economies of scale – you also gain access to HR technology solutions at a cost much lower than if you purchased them independently. Additionally, your HR team at G&A Partners will assist with:

• Setting up the system prior to your first payroll and adjusting it as needed
• Guiding you on how to use the technology to its fullest capabilities
• Advising you on how the technology can boost your strategic HR initiatives, like improving onboarding, employee experience, and retention

G&A Partners also utilizes its HR technology tools to help you maintain compliance with constantly evolving labor laws and regulations. For example, at G&A’s payroll system can calculate daily overtime based on California’s payroll laws for employees working within the state, and minimum wage changes for states are automatically updated within the payroll system.

It's worth noting, a PEO’s HR technology solution (and which platforms are included) will vary amongst professional employer organizations, and some HR technology tools may require an additional fee.

What is the difference between PEO and HRIS?

PEOs provide technology as part of a comprehensive HR outsourcing solution. HRIS – or human resource information system – is an online platform that helps businesses manage HR tasks and employee information.

While the capabilities within the technology may overlap, there are significant differences between an HRIS versus a PEO solution. Let’s explore both.

HRIS Technology Solution

Sometimes referred to as a human resources management system (HRMS), HRIS provides tools to efficiently complete processes related to payroll, benefits, or workforce management. HRIS also allows you to store and manage employee data.

Some HRIS solutions are designed for one HR function, which leads small and mid-sized business owners to select different solutions for different HR functions. For example, you may have a payroll system with a separate system for benefits administration.

This can create a less-than-ideal experience for employees who must access multiple websites or portals, keep track of various logins and passwords, or even manually reenter data across platforms. The cost can also quickly increase as you add more software platforms to complete additional HR functions.

An HRIS does not offer HR expertise, and with some vendors, you are responsible for handling all set up within the system. Therefore, your business may need an HR professional or dedicated person who can manage the system and your HR administration.

PEO Technology Solution

With a PEO like G&A Partners, you gain access to a comprehensive HR technology solution that also helps you efficiently manage daily HR tasks and streamline operations.

Examples of HR technology software that PEOs often offer include (but are not limited to):

• Applicant tracking system for recruiting and hiring
• Onboarding platform for new hires
• Time tracking system
• Payroll processing
• Benefits administration
• Workforce management
• Data storage
• Performance management platform
• Learning management system

In addition to HR technology, however, PEOs provide small and mid-sized businesses an extensive HR outsourcing solution that includes services such as:

• HR management
• Payroll administration
• Benefits administration
• Compliance assistance
• Risk management and safety services
• Recruitment
• Performance management
• Training and development
• And more

So, while an HRIS gives you tools so you can manage your HR, a PEO is a full-service, comprehensive solution that gives you the expertise, processes, and technology to ensure you and your employees get the best care possible. And at G&A Partners, you also get best-in-class client service.

Integrated PEO Technology Solutions

Integrated PEO technology solutions provide several benefits for small and mid-sized businesses, especially if you’re currently tracking time and payroll manually or utilizing multiple HR platforms.

Common benefits that businesses realize with PEO software include:

• Streamlined and automated HR tasks
• Self-service functionality for employees
• Access to a wide range of platforms for different HR functions
• Reduced manual data entry
• Minimized risk of errors due to reentering data
• Improved operating efficiencies and productivity
• Convenience due to single sign-on (SSO) systems
• Insights through data analytics and robust reporting
• Scalability as your HR needs grow or change
• Reduced costs due to consolidating technology vendors and a PEO’s economy of scale

However, it’s important to understand these key points about integration and PEO software:

• Many PEO HR technology solutions contain integrated, best-in-class products, allowing data to flow from one system to the next.
• Some platforms integrate better than others. If you have a particular system you plan to continue using for a specific HR function, you’ll need to work with your PEO to determine whether it can be integrated with the PEO software.
• “Integration” isn’t always an action that occurs in the background without your assistance, so be sure to clarify with a prospective PEO how their systems integrate.
• A single sign-on (SSO) system means your employees only need one login/password to access the various HR platforms. Not all PEOs offer true SSO, so it’s important to inquire about this with potential providers.

Benefits of Using a PEO for HR Technology

Not all HR technology solutions are created equally, and the same can be said for PEOs and their HR technology solutions. The ability to customize and integrate a system can vary amongst providers, just as there is variation in the types of tools.

The benefits of using a PEO for HR technology can be significant. Here’s an overview of the benefits you’ll realize using G&A’s HR technology:

• Single sign-on: Also known as SSO, this feature means you and your employees use one username and password to log in to all of your HR technology tools rather than keeping up with multiple websites, portals, and logins. It’s worth noting that some systems claim to offer SSO yet still require multiple logins for additional systems.
• Robust selection of HR tools: G&A’s solution ensures you can manage all phases of the employee lifecycle, from recruiting, hiring, and onboarding to tracking time, enrolling in benefits, processing payroll, evaluating performance, managing time off and accruals, and more.
• Integrated system: Vendors have varying definitions of “integrated systems,” but with G&A, it means data flows from one system to the next. So, when your new hire enters their personal information into the onboarding platform, that same information will flow into the payroll and benefits platforms, for example, without additional action on your part.
  
  If you have specific technology tools you’d like to continue using, G&A’s systems experts will work with you to find the best solution that allows your data to continue to flow from your system to ours – or vice versa – with minimal steps.
• Support for strategic HR: Improving employee retention, conducting effective performance reviews, and providing professional development are examples of strategic HR initiatives that can propel your business even further. With G&A, you gain access to HR technology that simplifies implementing strategic initiatives.

Because technology offerings can vary with different HR outsourcing providers, it’s important to consider these factors when evaluating an HRO or PEO:

1. Which HR technology tools are part of your service agreement? While a prospective PEO may have multiple technology tools, it’s important that you understand which tools are available as part of your service agreement and which are available for an additional fee.
2. Does the provider’s applicant tracking system integrate with major job boards? With G&A Partners’ solution, you gain access to a free posting per month that will appear on major job boards, expanding your reach to top talent. As your business and hiring needs grow, you have the option to increase the number of monthly listings for a fee.
3. Does the provider support compliance in all 50 states? Regional PEOs may only support compliance in specific locations, so it’s important to verify whether a potential PEO supports compliance in your current locations or in areas you may expand to in the future. This is especially important if you currently hire or plan to hire remote workers in other locations. G&A is a national PEO that supports businesses in all 50 states and can easily support your business as it expands.
4. How (and when) are new hires set up in the system? One benefit of integrated HR technology platforms is that employees can enter and update their sensitive information without the help of HR. This self-service capability reduces errors and helps protect sensitive employee data. Some systems, however, still require HR to input sensitive data when adding new hires. Additionally, evaluate when you can set up a new hire. Starting the process before their first day allows you to begin the onboarding process earlier and create a better experience for your new employee’s first day.
5. Does the provider allow customizations to meet your unique needs? Your business may have unique needs, such as employees who work in different roles with different pay rates or unique forms for new hires to complete. Consult with prospective PEOs about whether they support businesses in your industry or if they can customize the system to meet your needs.