ASO vs PEO: What's The Difference Between Both HRO models?

Young reflective payroll specialist

ASO vs PEO vs – one of the most recurring debates in the world of Human Resources Outsourcing. The total market value of global outsourcing is estimated at around $92.5 billion (Statista, 2019). With a growing number of companies endeavoring to go global, HR outsourcing stands out as the perfect solution to allow experts to handle this key function of business operations. This is the reason why HR outsourcing companies are only expected to grow in number the near future. In an ocean of offers, how can you navigate and choose the best captain to handle the crew? Knowing the specific features of each service will allow you to identify the right fit for your specific needs.

ASO vs PEO - Key Takeaways

The main difference between these services is a relationship of co-employment, each of which has its own bearings in terms of area of expertise and risk absorption

PEO 

ASO

Co-employs with client- legally liable for registration of the employees with tax and social security bodies

Client is sole employer- bears full legal liability of registration of the employees and ensuing compliance issues (if any)

Sponsors your benefit and insurance plans

Does not sponsor benefits and insurance plans

Advises with regards to compliance, although the PEO is not liable for lack of compliance

Focused on administrative duties and tasks, without providing compliance advice

Bears legal and financial liability for payroll and any mistake in payroll administration

Runs payroll on behalf of the client who remains the legal employer. Client, however, remains responsible for any mistake

Files taxes as the legal employer and bears legal liability for error in reporting

Files taxes on behalf of the client who remains the legal employer. Client however remains liable for any error in reporting

In practice, an all-in-one, stand-alone service

In practice, needs to be complemented by small internal HR team

What is an ASO?

An Administrative Services Outsourcing company is an entity that provides a certain range of administrative HR tasks. They often include payroll and workers’ compensation and benefits, while legally operating under the status of a service provider.

Why would I need an ASO?

An ASO can be particularly helpful in the African continent, in the context of running payroll and HR in countries whose laws and regulations vary greatly from yours. For instance, in Africa, social security payments and workers’ compensation insurance vary greatly according to each country. While workers’ compensation insurance is mandatory in Angola, health insurance is mandatory in Ghana, but no insurance at all is mandatory in Madagascar.

How does it help my expansion in Africa?

Considering the diverse legal landscape on the continent, a centralized African HR outsourcing organization will therefore be able to handle all of these aspects simultaneously.

As a trusted ASO in the African continent, Africa HR helps an array of multinationals and other corporate clients by providing them with:

  • Employee self-service platforms
  • Cloud-based payroll solutions
  • Deductions of taxes and contributions at source
  • Filing taxes on behalf of the employing organization

Such support relieves HR staff from time-consuming tasks, allowing them to focus on strategy and analytics for better-informed business decisions.

What is a PEO?

A Professional Employer Organization (PEO)’s services typically allow you to outsource a host of human resources tasks. From payroll administration, to benefits, workers’ compensation and other business insurance, services vary according to the organization you choose.

Why do I need a PEO?

A PEO’s major benefit is that it co-employs your workforce. As such, it bears legal liability for the services it offers. For instance, by choosing a PEO, not only do you outsource the payroll function; you also outsource the liability for any mistake that occurs in the payroll administration process.

How does it help my expansion in Africa?

As a trusted PEO in the African continent, Africa HR helps an ever-growing portfolio of clients. As experts with over a decade’s experience, we provide:

  • a streamlined onboarding process 
  • worker-related in-country assistance.
  • employee benefits, both mandatory and customized (including payments to third parties for insurance coverage and pension fund contributions).
  • ancillary services, such as identifying and securing office space, or leasing or purchasing IT equipment among others  

With the advantage of saving your company precious time and resources, Africa HR most importantly provides you with the expertise of degreed and trained professionals in the field of human resources.

Flexibility is the main benefit of an experienced HR organization

So, you’ve identified your needs. Which service provider should you choose? The right HR outsourcing organization is here to help your staff focus on core business and thrive. At Africa HR, we provide both ASO and PEO services to accommodate your company’s unique HR needs. Whether your needs stay the same or evolve to switch from one solution to the other, you will benefit from the continuous support of experts who share the same values, ethics, and standards for a great experience on your business growth journey.

At Africa HR, we’re all about lasting relationships. Learn more now!

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For your HR Outsourcing needs, think Africa HR Solutions

Contact us now to find out more about our extensive range of payroll solutions for businesses seeking a compliant expansion across the African continent.
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GRANT GERAGHTY - Africa HR Team

GRANT GERAGHTY

HEAD OF CLIENT RELATIONSHIP

Grant Geraghty is the longest-serving member of the Africa HR team. This resident subject matter expert and client champion is responsible for gaining a deep understanding of our clients’ unique HR needs in Africa and providing tailored solutions that align with their business objectives. Grant collaborates closely with our clients to ensure that their requirements are properly implemented, providing ongoing support and guidance throughout the process.

Grant brings a wealth of experience to his role, having served as Africa HR’s longest-serving employee. He holds a Bachelor of Commerce degree, with a major in Economics and Business Finance, from the University of Natal in South Africa. Additionally, he has completed a certification program in Payroll and Tax Administration from the University of Cape Town, further enhancing his expertise in HR operations and compliance.

His commitment to delivering exceptional service and his extensive knowledge of HR in Africa make him an invaluable member of the Africa HR team.

KEVINA TAKOORDYAL Africa HR Team

KEVINA TAKOORDYAL

HEAD OF OPERATIONS

Kevina Takoordyal has a BA Hons Business Management from the University of Glamorgan, UK, with MBA in leadership and Innovation, MBA General, PMP Certified, and Agile Scrum Master. She currently works as the Head of Operations at Africa HR Solutions Ltd with more than 20 years of proven leadership capabilities in Operations, Business Development, People Management, Process Optimization, and Project Management in the Financial Services, BPO, Banking Industry, and Heath Care Industry. In Senior leadership roles with an international footprint across Europe working and extensive Pan- African experience from a compliance, finance, and operations angle, Kevina comes across with a panoply of cross-functional skills. Kevina also serves on a few Boards, Non-Independent Executive at MioD and for NGOs on a voluntary basis, a coach and mentor to aspiring female leaders across Africa and Mauritius.

Kevina is a firm believer in Servant Leadership with a strong focus and commitment to uplifting others, with the ability to deliver through a highly engaged – diverse team, and works towards consistently synergistic value creation. While being a focused and adaptive thinker and Kevina is actively participating in panel discussions on Innovation, CX, Digital transformation.

Kevina serves as Project Assessor for the National Youth upskilling program. She has been recognized as Global Talent in a few companies, Ceridian, and International SOS Ltd whereby she has been awarded a few scholarships and had the opportunity to be mentored by Senior Vice President in the US. Award Winner in various fields and at a national level and recognized including Super Achiever Leader Award in Africa in 2016, Awarded Africa Women Leader 2018.

VILOSHNA PACKIRY POULLE​

VILOSHNA PACKIRY POULLE

Head of Finance & Business Support

Viloshna is an experienced finance professional with 18 years of expertise in strategic financial planning, financial analysis, cash flow management, systems and controls implementation, financial reporting, and continuous process improvements. She currently serves as Head of Finance & Business Support, where she has successfully automated and leveraged the financial reporting system capabilities to ensure efficient company operations.

Viloshna’s background includes senior roles in a multinational pharmaceutical company and a large listed Mauritian conglomerate. Her meticulous attention to detail and strategic thinking have streamlined financial processes, making her a valuable addition to any finance team. Viloshna is a qualified finance professional with an FCCA qualification and an MBA, bringing valuable expertise to any organization.

In her current role, Viloshna leads the company’s Treasury and Payments function, including the fulfillment of the company’s cross-border payments into Africa. With her strong educational background and extensive experience, Viloshna consistently demonstrates her ability to optimize financial operations, minimize risks, and improve profitability. Her expertise in financial reporting and process improvements make her a valuable asset to any organization.

MARK DU PREEZ​

MARK DU PREEZ

Head of Legal & Compliance

A qualified lawyer who joined Africa HR Solutions in July 2020, Mark Du Preez has experience working in private practice for a reputable law firm in South Africa. He also played commercially focused roles at a leading private bank, wealth management company, and outsourcing firm in South Africa and Mauritius.

Mark has played a pivotal role in Africa HR Solution’s risk mitigation strategy, which positively impacted P&L performance over the years.

He currently leads the Partnerships function of the company including relationships and oversight with in-country partners (ICPs) across Africa.

Alex Daruty - Africa HR Team

ALEX DARUTY

Head of Commercial

Alex has more than 15 years of experience in the global, strategic development of both enterprise and consumer brands in categories including technology, transport, enterprise software, entertainment, and travel.

With experience in roles on both agency and corporate side, he has worked across international brands and has led the development and execution of multi-discipline campaigns across EMEA, NORAM and Asia Pacific.

His focus is on driving meaningful business impact through brand differentiation and building high-functioning, digitally oriented, and analytically driven capabilities. He is motivated by working with, and developing dynamic people, teams, and organizations.

He leads, manages, develops and mentors the Key Account Management department, including line management responsibility for the team of Key Account Managers and Key Account Administrator who represent the Company as the primary communication link between all relevant stakeholders, including clients, third party in-country partners and internal functions.

Originally from Mauritius, he holds bachelor’s degrees in International Business, Finance and Management from the University of Nevada, Reno.