HR Service Provider Software: When Are You Ready for PrismHR?
At what point should you move to a fully integrated platform for HR service providers? That’s a question that all PEOs, ASOs, and other human resource outsourcing (HRO) providers face at some point.
It’s possible you may be comfortable with business as usual or you may find competition encroaching on your market. Your clients may be clamoring for services that you currently do not offer. Or, growth may simply be a part of your entrepreneurial goals.
Whatever the backstory, you know it’s time to move beyond single-function applications and a plethora of spreadsheets to provide HR for your clients. At some point, those resources simply can’t help you provide the sophisticated services your clients are demanding – and that your HR service provider competition is starting to offer.
Turning Legacy Software into Scalable IT
As you well know, HRO providers focus on services that help clients handle complicated HR tasks. These organizations typically do more than just manage payroll, offering services that touch the full employment life cycle, from new hire orientation to retirement benefits. They literally improve human resources for their clients, taking them to a whole new level.
With these additional services comes added risk for the PEO. That’s why the majority of HR service providers now rely heavily on HR software for PEOs that helps manage complicated HR functions for multiple clients. This makes it easy to help clients remain compliant as new regulations are added and changed. In terms of organizational functionality, it’s a necessity, but best-in-class human resources software also helps lessen the risk inherent in simply doing your job.
How to Choose the Best Software for HR Service Providers
PEOs typically start with payroll, benefits administration, and HR software; this is commonly the most client-requested services. That software solution may serve them well for years until the workload grows unwieldy or clients start needing additional services. As they grow, small to mid-sized companies often look for an extra set of hands to manage HR activities beyond payroll and benefits.
The biggest mistake an HR service provider can make when considering HR software is to pick one subset of the HR services you provide and buy individual components from companies specializing in only that service; just payroll or just benefits or just…you get the idea. If your company has a growth strategy, it is inevitable that these specialized applications won’t be able to scale with or for your business, nor will they integrate seamlessly.
In a way, your staff will be accomplishing what they always did with spreadsheets, going from one to another, trying to master a wide range of applications, all requiring separate logins and with different user interfaces. You will inevitably struggle to get data from one application into the other application.
Today’s cloud-based HR software has evolved to handle soup-to-nuts functionality – from payroll software to time and labor, benefits enrollment, and employee onboarding, and much more. Yes, your staff will need to learn how the new system works, and get used to a new way of working. But once they get past this barrier, they will find that they can accomplish more tasks in less time, and you will definitely see new opportunities to offer new services that will meet client needs and make your service more competitive.
For that to happen, you will need HR software that:
- Helps you and your clients remain compliant with applicable local, state, and federal regulations
- Provides clients with a measure of control via self-service – for managers and employees – allowing them to manage daily functions
- Has cloud-based scalability and services that can grow as your HR service provider grows
- Is interoperable across HR functions with data that flows seamlessly between tasks. Imagine the money you’ll save by entering data just one time
- Offers useful business analytics and reporting tools
If you’re struggling with a legacy payroll platform, you now have options. HR software has evolved and, if you choose wisely, one platform could help you achieve the success you’re striving for.
Related resource: The Key to HR Service Provider Growth: Business Agility