Using a PEO or Considering It?

If you are considering the PEO model, how do you find the right one?

And if you are currently using a PEO, how do you know you have the best solution for your business, and at the right price?

There are more than 900 Professional Employer Organizations (PEOs) in the U.S.

Usually, the “brother-in-law knows someone” method is not the best system for weighing your options.

Why a PEO?

1.      Large-group advantages in employee benefits, especially group health

2.      HR support and assistance with employment law compliance

3.      Payroll and benefits technology, including time and attendance, PTO tracking, applicant tracking, and electronic employee onboarding

4.      Integration of HR functions and consolidation of vendors

5.      Businesses that use PEOs grow 7 to 9 percent faster, have 10 to 14 percent lower employee turnover, and are 50 percent less likely to go out of business.

Factors to consider:

1.      Accreditation through ESAC or CPEO

2.      Master health plan – do they have one, and who is their carrier

3.      How long have they been in business

4.      Are they national, or are they currently set up in all the states where you could have employees

5.      Do they provide you an HR manager to assist with employee issues, policies, terminations, etc., and if so, what are their qualifications

6.      Reputation for customer service

7.      Cost. There is considerable variance among PEOs in the pricing of admin, health premiums, and workers comp.

Once you have narrowed the list, you can then start the process of emails, meetings, and calls with reps from each.

Or you can use a PEO broker, who will handle all of the above and deliver proposals to you with an analysis and comparison with your current solution, all at zero cost. www.peocounsel.com