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Traditional & PEO Models vs. Our ASO Model

To better illustrate the potential benefits, let’s look at some traditional HR processes compared to our Connor & Gallagher OneSource (CGO) ASO model.
Traditional new employee orientation vs.
our new employee orientation
  • Complete application, I-9, W-4 and related tax forms
  • Direct deposit forms and pre-note processing
  • Fill out medical benefit application
  • Fill out ancillary benefit application
  • Review benefit options and costs
  • Fill out 401(k) enrollment form
  • Fill out Flexible Spending Account (FSA) forms
  • Return incomplete applications to employee
  • Review and confirm all forms
  • Set up payroll entry and all deductions
  • Review policy manuals and procedures
  • Send all forms to carriers and service providers
  • Reconcile changes upon receipt of multiple vendor invoices
  • Make required changes and adjustments
  • Create employee file
  • Scan and review documentation
  • Submit employee change form to account rep
  • Entire orientation process conducted electronically through your HR Business Partner
*These same requirements apply to terminated employees, in addition to COBRA requirements

Traditional HR transactional processes vs.
our transactional processes
  • Reconciliation of multiple vendor invoices against payroll reports
  • Multiple adjustments, credits and debits based on enrollment changes
  • Recordkeeping and file maintenance
  • Ongoing benefits administration
  • 401(k) maintenance, loan processing, balance tracking
  • COBRA and FSA administration
  • Multiple vendor invoice payments
  • General ledger import and maintenance
  • Consolidated monthly invoice with all vendor payments made direct via Automated Clearing House

Professional Employer Organizations

Some businesses that are looking to streamline these processes have outsourced these functions to Professional Employer Organizations (PEOs). In many cases, PEO clients have the perception that in addition to outsourcing administrative functions, they are also capturing economies of scale on insurance products such as employee benefits and workers compensation by joining the PEO’s “pool.”

This perception is inaccurate. In today’s market, insurance rates from PEOs are as high, or higher in many cases, when compared to what a client can procure in the open market. In addition, PEOs offer a fully bundled service offering with little flexibility for the client. Clients are ultimately paying for a multitude of included services, which in many cases are not being used. In addition, most PEOs charge a percentage of paid client wages and are reluctant to disclose actual fees. This results in PEO clients constantly guessing as to what their actual costs are. The PEO model vs. our ASO model

  • Employees "leased" from PEO to client
  • Wages reported under PEO Federal Employer Identification Number (FEIN)
  • Employee benefits limited to PEO providers
  • Fees included as a percentage of wages
  • All-inclusive fees for HR Services
  • Duplication of payroll taxes upon termination
  • Insurance products bundled with payroll charges
  • Annual benefits renewal with no flexibility
  • Employees remain employed by client
  • Wages reported under Client FEIN
  • Maintain current benefits providers of choice
  • All fees disclosed per employee per month
  • Fees determined based on client needs
  • No payroll tax duplications
  • All insurance costs broken out

Watch a 2 minute overview of the benefits of switching to our ASO model.


The CGO Difference

The business of managing human resource functions efficiently can be very challenging

Our Administrative Services Outsourcing (ASO) model is designed to consolidate the requirements associated with employing people into a streamlined and cost-efficient solution that will benefit your business.

Speak with a CGO Consultant