Tuesday, November 22, 2005

HRO Updates

A couple of news items crossed my path that I thought were interesting.

First, Arinso recently got certified in their SAS 70 Type 2. I'd like to just say that if you're a public company in the U.S. going for full HRO (with benefits and payroll), please ask to see if your vendor has their SAS 70 Type 2's. I'm not sure what they were certified on, but it looks like it's only payroll processing controls. I'm not sure as I'm not a finance guy, but don't they need to certify not only gross to net, but timekeeping, tax filing, garnishment processing and other payroll processes individually? It also begs the question if they have already done their benefit SAS 70. Since these are also large employer expenses, they will definitely hit the bottom line. Maybe a finance person who's actually read Sox can weigh in.

Second, it's been pretty obvious in my HRO posts that I don't take Ceridian seriously. They were recently awarded an HRO contract for 8000 employees in the U.S. and Canada.
Ceridian will be responsible for a wide range of processes for 8,000 PHH employees in the U.S. and Canada, including HR and payroll management, benefits, time and attendance, talent and acquisition management, COBRA, Flexible Spending Account services, tax filing, work-life and employee assistance program (EAP), and HR compliance. In its role as HRO provider for PHH and its other HRO clients, Ceridian provides functional support of multiple HR and benefits functions, and in turn alleviates recurring administrative tasks and cost burdens for its client companies.
I'm actually surprised that Ceridian can put together that broad of an offering. While I really doubt they will be able to handle it in the back end (other than herds of people duct taping the thing together), it is an impressive assortment of services for this company. As the HRO mid market grows (currently dominated by ADP), we'll see if Ceridian can build some momentum.