PEO Software: Choosing the Best Software for Your PEO or ASO

By Chris Pisarkiewicz

PEO software is an important consideration for your HR service provider business.  No matter what you’re trying to accomplish, finding the right tool for the job makes a real difference in how quickly you complete a task. This is particularly crucial in the PEO and ASO industry; your entire business is designed around the software you use to deliver HR services to your clients.

If you don’t pick the best software for your PEO or ASO it will have an adverse effect on daily operations, causing staff frustration and the potential loss of clients.

When you’re ready to begin your search for new PEO software solutions you will likely be inundated with sales pitches. Some of them may even be accurate. But prior to your first vendor inquiry, take the time to list and prioritize what you’d like to see in this new HR software. What are the key functional elements you must have versus characteristics that would be nice, but not mandatory? Also, think about the ramp-up; how will you go live internally and externally?

Before you’re overwhelmed with details, let’s take a methodical look at four key categories you should evaluate when looking at human resources software for PEOs and ASOs.

Software for your PEO or ASO: Features and Functionality

The best PEO software solutions integrate all platform features and functionality into one seamless workflow. Interoperability issues between multiple vendors will cause headaches for you, and your clients. Finding one vendor that covers all functions is definitely preferable to the alternative. Will your vendor-partner provide:

Having one integrated PEO/ASO software platform will save you time by eliminating multiple logins and reducing the amount of redundant data entry.

The best PEO / ASO software is easy to use on mobile devices

Importance of User Experience in PEO Software Solutions 

A key consideration with any software decision is UX (User Experience), whether the user is your client or your employee.

Is the UI (User Interface) easy to understand and access? A clean, neat platform will be visually appealing and intuitive to use. Is the interface mobile-friendly? It better be; 64% of Americans use a smartphone and the number is growing. How does the platform view on a small screen?

Smartphone usability is particularly important when choosing a PEO payroll software solution. Letting your clients’ employees enter time and labor needs to be as simple for them as possible, and mobile access allows them to do this easily regardless of location. PEO payroll software that integrates with time and labor tracking in a single system makes life easier for everyone involved.

Software that increases the speed and accuracy of your daily tasks ranks high on the list of “must haves” for most PEO and ASO software evaluations made by executives. Improving employee efficiency will have a real effect on your bottom line and your customers will be happier with the functionality of the platform.

Reducing the number of repeated manual steps along with robust automated features will save time and money. Make certain you choose PEO software that offers the flexibility of automated data transfer, allowing your benefits data to easily communicate with carriers such as insurance and 401K providers.

How to Select a PEO/ASO Software Company

Next, we must discuss some of the most crucial vendor characteristics to search for.

What kind of company is standing behind their software? What is their process for tracking changes in HR compliance? How will they update your software? How much lead time will you have for major upgrades? What is their process for additional training should your teams require it?

PrismHR works hard to eliminate the word “vendor” from the vocabulary of PEOs and ASOs. We believe that integration should extend beyond how you access PEO/ASO software functions, and that it also should describe the way the “vendor” interacts with your team. We’ve built our business on partnering with our clients to deliver the best PEO software solutions in the industry. We believe our business is an extension of your business.

To learn more about how to choose a PEO software company, check out our in-depth guide on this subject, “HRO Software Selection Guide for PEOs and ASOs.”


Or contact us to discuss what you’re trying to accomplish and see how we might help you meet your goals.

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Our easy to use, intuitive platform makes PrismHR the best PEO software