What Services Do HRO Companies Provide?

Human resources management can be too much for some companies to handle on their own, whether the scale of a business is just that large or just that small. Understanding what services an HRO can provide you will help you understand how to make better choices moving forward for employee, benefits and general HR management.

Understanding HRO vs. PEO

It’s important to understand the difference between an HRO and a PEO in determining what services you need, and what type of outsourcing group you need to partner with. PEO stands for Professional Employer Organization, and this is a type of firm that can provide a wide range of services, including payroll, worker’s compensation, benefits management, recruiting, and risk management for your company. You can pick and choose services as needed from a PEO, whereas an HRO offers to serve as your business’ sole HR management. In general, though, HROs are more flexible. PEOs often deliver based on a specific service, whereas HROs have a specific HR manager assigned to about 30 clients that they work exclusively with, providing more personalized attention.

Basic HRO Services

The type of HRO services company that you choose to partner with will determine the kind of versatility you can have in your company’s HR system. Some will allow you to choose and bundle specific services that you need, and their services may be more basic or more in-depth, depending on the needs of your business. The size of your business makes a difference as well. It’s a good idea to choose an HRO that has experience working with a business of your size, whether large or small, so that they already know from the starting gate what you need, before you do.

Benefits of HRO Services

HROs can serve as a more active part of your business, because of the degree of personalization involved in how they manage their clients. They will be more focused on your business as a whole, and will be able to give more specialized attention to delivering in HR, employee management, compliance management and employee education. Whether or not you choose an HRO company instead is largely based on the kind of partnership you’re looking for out of your HR services. If you simply know a specific set of management services that you need, and want someone else to take care of it for you, then a PEO may be more on par with what you’re looking for.

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