Why Companies are More Likely to Work with an HR Service Provider with a Robust Human Resource Information System (HRIS)

By Craig Babigian

HR service providers (including PEOs and ASOs) are evolving. In the past, they typically only partnered with small businesses, but larger companies are increasingly interested in the value they provide. In large part, this is because you, as an HR service provider, do a lot more than just process HR and administrative tasks.

In the eyes of your clients, you “come with” highly sophisticated tools for accomplishing complex HR functions. Increasingly, it’s a package deal. Today clients and their employees want access to more and more data and control in an employee HR portal, which often requires the latest technology.

Modern HR Software Adds Value

There are a number of ways that human resources software allows you to do more for your clients.

Location-based Tax Accounting

Different states and cities have different taxes. If an employee lives and works in different places, or if an employee moves during a pay period, then taxation rules can become exceedingly complicated. To handle this, you need a system to handle this automatically. Otherwise you may be forced to manage and update tax tables manually.

Compliance Issues

HR service providers understand how challenging it is to remain compliant with the ever-changing laws and regulations that surround HR functions and reporting – failure to do so can result in large fines, and significant damage to your reputation. With the support of modern human resources software, those reports are kept up to date so you don’t have to worry and it makes it easy to keep your clients compliant with the latest regulations.


If you want to grow and handle larger clients, you need software that can keep up. Many HR service providers rely on a hodgepodge of different systems, with data stored in servers onsite.

This is a fine and simple solution for maintaining existing clients, but to take on a new, massive client, the time and cost it would take to scale can quickly become a challenge to get the new client up and running. Cloud-based software allows you to confidently say “we can handle it,” to even the largest of companies.

Think Long Term

Chances are, you are already using software of some kind to run your business. Perhaps several different types of software. After all, it’s impossible to run a business this complicated using a simple spreadsheet.

But are you using a system that is flexible, versatile, and agile to support your long-term growth? With every year, technology becomes more important to running your organization and to your clients. This will be a major factor in your success.