Payroll Service Bureaus (PSBs), PEOs, and HROs of all kinds have discovered the advantages of supplementing their services with software revenue. Depending on the functionality of that software, it can retain a client who might otherwise outgrow an HRO’s services. Or, it can promise greater efficiency to lower costs with an attractive new revenue stream.
HROs usually offer such platforms in response to a perceived need. They are responding to their client base as it is, not necessarily as it might be. But deploying new software—with all the expense and disruption that goes with that—just to solve a point problem of yours or your client’s may be a missed opportunity.
Full-featured HCM software can deliver the benefits mentioned above and much, much more. It’s a natural extension of a PEO’s business. And it can open even more possibilities for PSBs.
Opening New Doors
If you’re not familiar with the new generation of HCM software, you may not fully appreciate its capabilities. Its core virtues are its adaptability, configurability, and extensibility.
That is: A robust HCM platform can work for virtually any client in any industry. It provides all the core features a company needs for capturing time and processing payroll, enabling employee self-service to tax information, PTO, and related HR engagement, and facilitating recruitment and onboarding of talent for high-performance organizations.
Modern HCM solutions are designed to be tweaked and configured as necessary to fit each client’s needs and workstyle. This enables HROs selling the platform to address clients’ care-abouts in very specific ways without a lot of tech talk.
The best HCM platforms also enable activation of value-added services with the flip of a switch. They can accommodate third-party products like benefits, healthcare and retirement plans, and more. All this is made possible by their cloud-based SaaS (software as a service) design. Everything can be addressed in the back office; no visits to the clients’ premises are necessary… unless you just want to take them to lunch.
Now HROs can deliver their core skills to clients that previously might have been a mismatch in terms of size or the range of services required.
Growing Profits
The efficiency that software enables, and the improved margins that go with it, are still constants in an HCM business model. Whether streamlining delivery of a PSB’s payroll services or allowing a PEO’s client to graduate to administering their own HR, HCM software taps that revenue stream with minimal demands on an HRO’s time or energy.
What’s more, the new HCM-based services or products a client activates are that many more revenue streams, often with virtually no cost to the HRO in terms of additional workload or administrative overhead. In fact, since the client is already familiar with the system, even the cost of sales can be lower for such upgrades and add-ons.
Tightening Client Relations
HCM software can be the cure for a lot of a client’s ills. When an HRO is a client’s connection to that software, they are in a position to solve a lot of that client’s problems. At a minimum, the HRO becomes a valuable consultant on operational matters.
This does more than open the door to selling more products and services. It builds personal bonds that software can never replace.
As the nation’s leading provider of software for HROs, with a client base going back decades, PrismHR understands the critical interplay between HROs and their clients. Everything we know about these dynamics is reflected in our HCM offering for PSBs and PEOs. This translates into a uniformly positive selling, provisioning, and servicing experience for our customers and their clients.
To learn more about PrismHR’s HCM and what it can do for your business, visit us at prismhr.com/software/hcm.
