What Is an HRO?
An HRO (Human Resources Organization) is sometimes called Business Process Outsourcing. HROs are designed to manage Humans Resources for larger companies (75+ employees).
Like an ASO, you (the employer) retain control as the Employer of Record. Meanwhile, the HRO handles all major aspects of Human Resources.
This includes:
• Recruitment & onboarding
• Training & development
• Benefits & compensation (job descriptions, compensation structure, health benefits, workers’ comp, etc.)
• Communications material (i.e. employee handbook)
• Recordkeeping
• Payroll processing
• Health, safety, & security
• Workplace compliance
• Conflict resolution & training
• Budget management services
• Keeping employee data private and secure
• Protection against violations of immigration law
How does an hro manage human resources?
An HRO acts the same way an internal human resources department would function. Most feature an employee call center, which employees can contact directly to discuss their needs.
A fantastic benefit of using an HRO is it increases your employee retention rate. Your workers won’t feel they need to join a bigger company to get better benefits—you’ll already provide everything they need.
This could be the right choice for your company if:
• You have over 75 employees
• You lack the ability or desire to keep track of employee-related laws and regulations
• You need more effective HR policies and procedures in place
• You’re not comfortable with the co-employment concept of a PEO
• You want to offer your employees a greater variety of options, such as short-term disability, life insurance, or 401(k)
• You’ve recently downsized or eliminated your HR department but still need guidance with regulatory issues
• You like the idea of a customizable solution for your business needs—you only select the options you need
Using an HRO simplifies the HR complexities that larger companies encounter on a daily basis. Does this sound like the right solution for your business?