PEO growth is on the horizon, but so is the compliance burden that comes with it. Scaling compliance processes is necessary for survival. The old way of tracking obligations manually won’t withstand the pace of multi-state hiring, expanding PFML programs, and fast-moving mandates like pay transparency. Integrated workflow management software is the operational backbone that makes compliance scalable, auditable, and client-ready at every growth stage
What’s Inside
The Q1 2025 PEO Pulse Survey points to growth ahead: 71% of PEOs expect moderate worksite employee (WSE) expansion this year, and 19% anticipate significant increases. With more WSEs comes the need to hire and onboard at scale, maintain compliance across an increasingly fragmented regulatory landscape, and keep client satisfaction high. The challenge isn’t new, but the stakes are higher when compliance risk scales with every headcount increase.
While most PEO leaders don’t need a primer on compliance challenges, three trends are making automation an urgent need:
The compliance load is growing faster than most PEOs’ internal resources. Without automation that spans the hiring process and ongoing workforce management, the margin between staying compliant and falling behind gets razor thin.
At its best, workflow management software removes the guesswork and manual tracking from compliance. It standardizes, automates, and documents critical steps, making the “right” thing the easy thing.
Policy-driven task templates
Task routing
Deadline orchestration
Centralized document storage
Immutable audit trails
Multi-state onboarding with varying PFML and pay transparency rules.
A new hire’s work location triggers the correct state-specific onboarding workflow—launching required notices, contribution setups, and document collection automatically.
A client hires employees across multiple states with varying new-hire reporting deadlines.
Overtime exception requests are routed to the correct state HR manager for review, avoiding rule misapplication.
State new hire reporting must be submitted within 20 days of an employee’s start date.
A 15-day reminder alerts the HR contact, with an escalation at 18 days to ensure the report is filed before the deadline to eliminate late submissions and potential fines.
A state audit requests proof of wage theft prevention notices for all hires in the past year.
All notices are instantly retrievable from one organized, searchable repository.
A client disputes a missed compliance deadline.
An immutable log shows when the task was assigned, viewed, and completed, thus ending the dispute.
Integrating ATS and workflow management software can deliver measurable value:
|
Benefit |
Workflow Management Feature |
|
Consistent compliance across jurisdictions |
Policy-driven templates with state-specific rules |
|
Fewer penalties & fines |
Deadline orchestration with auto-escalations |
|
Audit-ready documentation |
Centralized evidence and audit trails |
|
Faster onboarding in new states |
Automated multi-state task generation |
|
Lower legal costs |
Reduced external counsel involvement |
|
Higher client retention |
Trust from consistent compliance delivery |
The majority of PEOs forecast WSE growth in 2025. That growth will be won and kept by those who can scale compliance as confidently as they scale hiring.
Pairing an ATS with workflow management software bridges the gap between compliant hiring and compliant operations, thereby creating a continuous compliance thread from job posting to audit packet.
📝 Next step! Audit your clients’ top five pre-hire and post-hire compliance workflows this month. Identify gaps, and pilot integrated automation with one high-growth client.
HiringThing is a recruiting and HR workflow platform that creates seamless HR experiences. Our white label solutions and open API enable HR technology and service providers to offer talent software to their clients. Approachable and adaptable, the HiringThing HR platform empowers anyone, anywhere to strengthen their team.