What is an ASO?
An administrative services organization (ASO) is an organization that provides administrative and HR services/support for its clients. Examples of administrative and HR services which an ASO can provide, include:
- Payroll services such as processing and administration
- Tax Administration & Reporting
- Benefits administration
- Regulatory compliance
Why use a European ASO?
An ASO is a convenient way to outsource tasks, such as payrolling, that can be more efficiently handled outside your own company. Why should I outsource responsibilities such as pay-rolling to an ASO? An ASO can provide a cost-effective solution for managing risks associated with employee management responsibilities which are listed above. Especially when managing employees across other countries, such as countries in Europe, where different employment legislations, times zones and languages are in place, managing/administering payroll can be complex. This is where a European ASO can add additional value.
In addition to the services listed, an ASO can assist their client on an hourly fee basis with legal and compliance issues. The client would then implement and manage the recommendations with their own resources.
Who uses an ASO in Europe?
Typically, the ASO model is a valuable solution for established organizations which are looking to retain internal HR staff, as the ASO acts as a complementary extension of HR. Organizations use ASOs so that they keep full control over their employees.
Whether an ASO makes sense for your organization depends on several factors. First, you need to consider whether you want or need to outsource your organization’s HR tasks and responsibilities. Outsourcing HR functions can reduce your administrative workload and free up your time so you can focus on your business objectives.
If you want or need to outsource HR tasks and responsibilities, you need to ask yourself which HR functions make most sense to outsource in your organization. If you wish to outsource a broad scope of your HR responsibilities, a PEO is your optimal HR solution. If you choose to limit the outsourcing to administrative HR tasks and responsibilities, then ASO would be the best option.
If you’re considering PEO or ASO services, the best way to decide is to submit a request for a proposal and find out which model your business is best suited. We’d be happy to walk you through the advantages each model can offer your business to help you make an informed and optimal decision.
Interested to learn more about PEO as HR Outsourcing Solution? Click here.
Please contact Monique Ramondt-Sanders - VP of Human Resource Outsourcing at EuroDev - for more details on ASO and PEO. Interested in more information concerning our HR Outsourcing services? Please have a look at our HR Outsourcing page.
EuroDev, established in 1996 with offices in The Netherlands and France, has a single, defined purpose to help mid-sized North American companies expand their business in Europe. We have created a proven, successful business development model and since our founding, have partnered with over 300 companies to help them define and meet their European business goals. Services provided include Sales Outsourcing, HR Outsourcing and Digital Marketing.