The top reason why businesses will be looking to switch their professional employer organization (PEO), administrative service organization (ASO) or payroll provider in the next 12 months is because of a need for broader human resources (HR) technology.
This data, from isolved’s Transforming Employee Experience report, suggests that upgrading human capital management (HCM) tech is a great way for service bureaus to differentiate from competitors in the marketplace. For PEOs, ASOs or payroll providers looking to update their HCM provider (or evaluate their current one), here are several things that should be taken into consideration:
1. A Unified (and Robust) Solution
isolved’s report shows that businesses are clearly prioritizing technology when choosing their service provider. A unified, end-to-end HCM platform can be used to manage the entire employee lifecycle and perform all required HR tasks. Since all important information is stored within one platform, productivity and data accuracy also improve because service bureau employees and clients no longer need to log in and out of multiple systems to access the tools or information that they need.
2. Flexibility on the Front and Back End
HCM technology should be agile enough to support a variety of clients and business sizes. A cloud-based platform with an open application interface (API) can be configured, which gives it the ability to adapt to each client’s needs. Flexibility, however, is also needed on the back end of the system according to isolved’s Director of PEO Solutions Shane Underwood.
“You need to make sure that the back end of the HCM platform offers flexibility that enables PEO and ASO employees to effectively manage their clients,” said Underwood. “A platform with limited capabilities could end up costing more in the long run. You may end up purchasing different solutions to make up for limitations or spending money on custom programming to update the platform so it better fits your business’s needs.”
3. Great Usability
Since consumer experiences – like those from Amazon – influence expectations for technology experiences in other areas of life (like work), HCM platforms need to be easy to use. After all, technology that isn’t intuitive is unlikely to be used to its full potential by clients. An intelligently connected platform improves usability because common HR tasks, like time and payroll, are kept in sync. This simplifies everyday responsibilities, removes obstacles like multiple logins, as well as eliminates the need for numerous imports and exports.
4. A Regular Cadence of Updates
Another benefit of a cloud-based platform is that updates can be delivered on a regular basis with minimal downtime. This means the platform is nimble enough to adjust to market shifts and trends quickly. When searching for an HCM provider, PEOs and ASOs should inquire about the platform’s update schedule and overall product roadmap.
“It’s important to have access to your HCM provider’s product roadmap. It gives you an idea of what to expect in the future,” said Underwood. “You also want to know that if your HCM provider says it’s going to do something, that they are going to follow through.”
5. A True Partnership
Last but certainly not least, service bureaus should look for a true partnership when choosing an HCM provider. A partner should offer support in a variety of ways, including:
- Access to valuable sales and marketing resources
- Ongoing access to trainings
- Opportunities to network with others in the HCM community
“It’s important to work with a software provider that is willing to partner with you rather than become another vendor,” Underwood notes. “There’s a relationship aspect that can impact the success of the partnership. A relationship requires two-way communication from partners who may need to discuss things like enhancements, industry trends or compliance best practices.”
A Platform (and Partnership) Built for the Future
Taking all of these things into consideration when choosing an HCM provider to partner with will help ensure that your business has the technology and resources needed to support all of your clients’ needs. That’s a competitive advantage that will help you future-proof and accelerate your business.
If you are looking for a new HCM provider, here are five reasons why you should join the isolved Network.