Mid-market HR and payroll platform provider iSolved HCM is adding functionality to serve professional employer organizations, or PEOs. Launch is expected sometime during the fourth quarter.
While the company already supports some 45,000 employers through a network of regional payroll service bureaus, it says the complexity and frequency of regulatory changes are forcing more mid-sized companies to engage these service bureaus and PEOs to handle workforce management issues. As a result, iSolved will launch its PEO module later this year.
“The iSolved platform, with its PEO module, will support all outsourced employee-management tasks such as employee benefits, workers’ compensation, recruiting, safety and/or risk management, training, and development,” the company said.
iSolved believes it can serve employers at “every step of their business life cycle” by adding PEO functionality to its existing platform. Organizations moving to or from a PEO will “have greater flexibility and an easier transition,” it said, especially midsized businesses that are growing quickly and require PEO-type support if they’re to open offices in other states, hire employees as quickly as possible and minimize compliance risks.
iSolved’s existing platform offers HRIS, payroll, time tracking and benefits, as well as learning management, hiring, onboarding and performance management, “it’s a natural extension of our HR platform to provide full employee management support” to PEOs, said President and COO Todd La Fever.
Serving PEOs is a smart move, since more small and microbusinesses are becoming aware of HR technology’s benefits. Microbusinesses alone, which the Association of Enterprise Opportunity defines as companies with fewer than five employees, employed 35 million people in 2014, or 22 percent of the overall American workforce. In 2011, they represented 92 percent of all U.S. businesses and impacted the economy to the tune of $5 trillion, the group said.
By and large, that market’s potential hasn’t been high enough to excite most HCM tech providers. Although vendors and analysts say that more HR tech services are shifting their attention to smaller companies, few are giving much thought to serving organizations with such low headcounts.
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