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In today’s tight labor market, competition for talent and related services can be ferocious. HROs of every kind—from Payroll Service Bureaus (PSBs) to PEOs—are looking for ways to grow their book of business, or just keep the business they have.
Technology has long been an equalizer in commercial competition, enabling smaller firms to compete with larger ones on both the cost and the quality of their services. The one place where technology has not been a difference-maker is the range or quantity of services offered. Until now.
Full-featured HCM software can enable delivery of services for every stage of the employee lifecycle, from recruitment to retirement. What’s more, HRO providers incur only minimal capital expense to get set up on the platform. Cloud-based software enables a pay-as-you-grow model. So HROs can survive – and even thrive – in a competitive environment.
Recurring Recruitment Revenue
The front lines of the current scramble for talent run through open positions. If an HRO can help a client with that, they are well-positioned to grow the entire relationship. A full-featured HCM is the tool that can do it.
The most obvious service on this front comes from HCM software that can integrate with the primary job boards like Indeed and LinkedIn to find talent wherever it’s needed. When an integrated applicant tracking system (ATS) is activated, top talent is faster and easier to identify, vetting is streamlined, and the polished experience is more successful in wooing the best people.
Even onboarding goes more smoothly, with a faster ramp to peak productivity and a greater likelihood of retention. These facts are great for the client, and all key selling points. But each function can also be a discreet service with its own revenue stream. That lets clients customize their service package and makes those packages easier for HROs to sell.
Profiting from Payroll
A full-featured HCM system enables payroll processing with many advantages over payroll-only services. PSBs can offer non-payroll HR services to their clients, while HR-focused HROs can offer payroll in addition to all their other client services.
Of course, that dynamic can cut both ways. A PSB that leverages an HCM platform to deliver their core services is ideally situated to deliver all the services that platform enables. Software solutions with time tracking, workforce management, benefits, and compliance features are logical extensions of that client relationship. And every service activation is a fresh revenue stream.
Better still, the various solutions inside the platform along with the many process automations such platforms enable can dramatically cut the costs of service delivery. This can translate into higher profits. It also shields a provider against competitors who may try to take the account based purely on price.
Higher HR Margins
Whatever your point of entry with a client, a full-featured HCM system ties into every aspect of HR and payroll. Clients primarily concerned with employee engagement will appreciate the performance management features and employee self-service capabilities. Growing clients may be attracted to the detailed data capture and analysis features to help inform their growth strategy.
Any of these capabilities can be quickly and easily activated. Each of them is instantly a new revenue stream. And each comes with minimal operational overhead, so the margins are especially attractive. In fact, because the software is cloud-based, even technical support is backstopped by the software provider… assuming you are working with a top-tier product and provider.
PrismHR is just such a provider, with decades of experience in the HRO industry. PrismHR’s HCM is the product of all that real-world experience, technical leadership, and applied best practices. So PSBs and HRO providers of all kinds can match competitors feature for feature and compete on a level field.
To learn more about what it can do for your business, visit us at prismhr.com/software/hcm.
