Tag: aso administrative services only

5 Advantages of Outsourcing Benefits Administration


If you run or manage your own business, you’re always looking for ways to cut costs and improve productivity. With so many administrative tasks to keep track of, a lot of business owners are turning to ASO (Administrative Services Only) companies for assistance. Here are a few reasons why this could work to your advantage.

1. Streamline Your HR

By shifting your benefits management to another company, you can have a leaner HR department. Why have your human resource specialists deal with the most mundane administrative tasks, when you can have them work on more targeted projects to better serve you and your employees?

2. ASOs Have Their Own Professionals

When you sign an administrative services only contract, that means you’re getting professionals trained in skills precisely attuned to your business. Experts charged with the tasks of keeping up with the arcane changes in laws and regulations that come with running a small business can be far too expensive to hire as employees. Letting an ASO provide their own experts alleviates that problem.

3. Cut out the Busy Work

A lot of time, money, and effort is spent every day just administering to the simple task of keeping the company running. Better to let outside parties tend to those issues, so you can have your employees – the ones you chose for their talents and creativity – do what they were trained to do. Anything that moves your workers away from the simplest bureaucratic work associated with their jobs is a boost in productivity.

4. Prevents Liability

The outsourcing company takes it upon themselves to make sure you’re complying with all laws and regulations. This offers a shield to the company in the event something goes wrong, while spending effort and expense to handle these tasks yourself only exposes the company to increased risk.

5. Advanced Technology

When you run your own benefits administration, it’s up to you to keep up with the latest trends. Not only does that mean trends in benefits and how they’re administered, but in how they interact with the employees. That means you have to have a website in place, and people on board to maintain and respond to inquiries. Letting another company take care of benefits-oriented website relieves you of a tremendous burden.

With all these advantages and more, ASO (Administrative Services Only) contracts are quickly becoming the fastest and easiest way for a company to increase its productivity.