Asure Launches Managed Payroll Service, Challenges PEO Model
Event summary
- Asure Software launched AsureWorks, a 'done-for-you' payroll and HR service, alongside its existing AsureCentral platform.
- AsureWorks specialists handle payroll processing, tax filing, and HR administration for clients, who remain the employer of record.
- The service is structured as an alternative to Professional Employer Organizations (PEOs), avoiding co-employment and bundled benefits.
- Pat Goepel, Chairman and CEO of Asure Software, stated AsureWorks is additive recurring revenue from the existing client base.
- Early client Chad Davis highlighted the 'peace of mind' offered by AsureWorks.
The big picture
Asure’s introduction of AsureWorks represents a strategic shift towards offering a full-service payroll and HR solution, directly addressing the increasing complexity of compliance and administrative burdens for employers. This move challenges the traditional PEO model by offering a flexible alternative that retains client control while providing specialized support. The service’s reliance on Luna AI underscores the growing importance of automation in streamlining HR processes and improving operational efficiency.
What we're watching
- Market Adoption
- The success of AsureWorks hinges on convincing employers that a non-PEO managed service offers a compelling value proposition, particularly given the existing PEO market's established presence and client inertia.
- Luna AI Impact
- The efficiency gains from Luna AI will be critical to Asure’s ability to profitably deliver AsureWorks, as the service’s pricing will need to be competitive with both self-service software and traditional PEOs.
- Competitive Response
- Other payroll and HR software providers will likely observe Asure’s move and may consider developing similar managed service offerings or partnering with existing PEOs to counter AsureWorks’ appeal.
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