isolved's New Research Helps Business Leaders Identify Growth Opportunities
ORLANDO, Fla., Oct. 11, 2023 /PRNewswire/ -- NAPEO ANNUAL CONFERENCE – Today, isolved published its 2023-2024 PEO, ASO & Payroll Service Provider Insight Survey, which found that in order to meet clients' evolving needs and grow in a competitive market, professional employer organizations (PEOs), administrative service organizations (ASOs) and payroll service providers (PSPs) are increasingly striving to offer a diverse suite of software and services. The survey found, for example, that less than half of human resource (HR) service bureaus currently provide critical solutions like artificial intelligence (AI) assisted tools, benchmark insights, compensation management, predictive analytics, employee engagement or expense management to their clients, but they are adapting to meet client needs.
To understand PEO, ASO and PSP's top priorities, isolved asked respondents what human capital management (HCM) solutions they are currently not offering but would like to add in the next few years. The top-two technology priorities include predictive analytics and benchmark insights – aligning with a recent survey of 500 HR leaders that found 40% of them will invest in HR analytics this year. Both HR leaders and HR service bureaus are also turning to services to meet needs. The HR leaders survey found that 55% of employers will outsource HR management tasks this year, while more than half of PEO, ASO and PSPs are already complementing their software with services such as HR consulting and compliance management.
"Economic uncertainty and scarcity of top talent make it more challenging than ever to maintain a strong and productive workforce. So much so that HR professionals are losing sleep over it," said Pragya Gupta, Chief Product Officer at isolved. "PEO, ASO and PSP leaders see dominant trends among their clients with retaining top talent, staying compliant and competing for top talent being what is keeping their clients up at night. This increased need for internal HR support has caused many businesses to turn to HR service bureaus that have a large breadth of offerings to fill existing gaps within their organizations. In turn, service bureaus are working with partners like isolved to meet increasing demands with a single, intelligently connected system."
As employers' needs continue to evolve, PEO, ASO and PSPs must ensure that their HCM technology partners are poised to scale and grow with the market. Their level of confidence is mixed here, with isolved finding that 43% are confident in their HCM technology partner's ability to adapt to the future of work, while 48% are somewhat confident and 9% are not at all confident. One area 74% of respondents agree on, is that working with an HCM technology partner that offers a single platform is a critical criterion for them when evaluating who to work with.
Simultaneously, like the businesses they serve, challenges related to talent and the economy are also top of mind for ASO, PEO and PSP leaders. According to the survey, the top-five challenges providers face when running their business are (1) operating costs, (2) securing talent, (3) attaining revenue goals, (4) effectively training employees and (5) possible security breaches.
For more information on HR service bureaus' plans, priorities and pain points, download the "2023-2024 PEO, ASO & Payroll Service Provider Insight Survey". And, learn why ASO, PEO and PSP organizations join the isolved Network by contacting us here.
About isolved
isolved is the most-trusted HCM technology leader, providing the best combination of software and services to meet the needs of today's People Heroes – HR, payroll, and benefits professionals. From talent acquisition to workforce management to talent management, our solutions are delivered directly or through our HRO partner network to more than 6 million employees and 168,000 employers across all 50 states – who use them every day to increase productivity, accelerate decision-making and ensure performance, while reducing risk. isolved People Cloud™, our intelligently connected platform, automates the entire employee experience by design, so that organizations can engage, empower, and energize their talent while freeing their People Heroes to exceed their goals and grow their careers.
Media Contact
Amberly Dressler, VP of Brand & Customer Marketing
adressler@isolvedhcm.com
SOURCE isolved