Are you getting the most out of your Professional Employer Organization (PEO)?

Had a call the other day with a CFO and learned that they had been using a Professional Employer Organization (PEO) for almost four years, and had not utilized many of the services the PEO offered. 

We see often that companies will join a PEO, but never fully take advantage of the services the PEO offers. So, we thought it would be a great idea to put together a quick list of the services that a lot of companies do not utilize in their PEO. 

Recruiting 

Many of the PEOs that we work with offer recruiting, and it is almost always less expensive than using a third-party provider. Whether it’s full-service recruiting or just running ads on Indeed, you should always check with your PEO to see what they offer. 

A lot of our partner PEOs offer expanded recruiting that ties into the whole PEO offering. One of our clients saved $17,500 by using their PEO for recruiting, rather than employing a recruiter directly. 

Human Resource Support and Service 

PEOs have robust HR departments and the staff are experts in HR-related matters. Many companies that have a PEO never utilize the HR services. Even if you have an HR staff, the PEO can help immensely with your administration.

One of our clients who has a larger HR staff uses the PEO to offload administrative duties to their PEO, and in turn, can focus their attention on HR initiatives rather than admin work. Whether it’s an offer letter, your employee handbooks, or just general questions, your PEO’s HR department is a valuable resource

Depending on your specific kind of company, recruiters can be expensive and the best ones are often hard to come by. If you are unsure if your PEO offers recruiting ask, and if not, maybe it’s time to find another PEO.

Employee Benefits 

While most companies join a PEO to take part in their Employee Benefits, there are times when they don’t take part in the medical plan. Unless you have a sophisticated health insurance plan that is self-funded or if you have thousands of employees, it’s a no-brainer to participate in your PEO’s benefit plan. 

The PEO gives you access to large group benefits at affordable rates from National Carriers like Aetna, Blue Cross Blue Shield, Cigna, United Healthcare, and Oxford, as well as Regional Carriers like Kaiser Permanente. 

The PEO alleviates renewal negotiations, COBRA administration, enrollments, and claims management. So if you are in a PEO and you offer your employees benefits, it’s just good sense to use the PEO’s plans. If you are using a PEO that doesn’t have a master medical plan, you should look at other PEO providers. 

Workers’ Compensation Insurance

If you are a white-collar company it’s likely that you didn’t join your PEO because you were concerned about your Workers’ Compensation cost. Let’s say you are a blue or gray collar company and you are in a PEO, it’s likely the Workers’ Compensation was a deciding factor. 

Regardless of what kind of work your business does, it makes sense to take part in your PEO’s Workers’ Compensation policy. Your rates will be lower, your year-end audits are eliminated, no down payments or deposits to bind coverage, and last but not least the PEO handles all of your claims. 

Now if your PEO can not write your Workers’ Compensation then maybe it’s time to look at another PEO.

Employee Related Legal Advice 

The last and often overlooked benefit of being in a Professional Employer Organization is that you reduce your employer-related liabilities through Co-Employment. Along with that comes access to legal advice on employee-related issues. Instead of having to consult an Employment Lawyer each time you have a question, you can contact your PEO’s legal team. 

One of our clients had an employee issue and used their PEO rather than the $450 an hour their lawyer wanted for the same question. So if you are in a PEO, it’s just smart to take advantage of what you are already paying for. 

Retirement Plans 

It is vital to offer your employees a Retirement Plan as part of a well-rounded benefits package. Every PEO we work with offers comprehensive options for retirement plans and makes the whole process very easy. By taking advantage of your PEO’s retirement plans, you offset the responsibility of managing the plan, 5500s, and the testing. 

PEOs partner with world-class providers so that you have access to numerous options and expertise. So you can focus on your business, rather than investments. If you are not using your PEO’s retirement plan, it makes sense to look into it and compare what you are currently doing to their options. 

How to get the most out of your PEO

As you can see your PEO is a valuable resource in various ways, isn’t that why you joined one in the first place. So why not partake in every service they offer so you can focus on your business. The best way to find out if you are getting the most out of your PEO is to see what services your PEO offers, which ones you are using, and compare the difference. 

We can help you get the most out of your PEO, and even ensure that you are using the right one. Schedule a call with us and we will help you.