Yes, we know you have questions. And no, we don't want you to wait.

We want to attend to them as promptly as we can. So we chose some frequently asked questions or FAQs about PEO Brokers for your instant answers. Here we go.

What is a PEO broker and what do they do?

A Professional Employer Organization Broker or PEO Broker is an individual or a firm that acts as an intermediary between a company and the PEO (Professional Employer Organization).

No, it's not just about connecting them. PEO Brokers work mainly to find the best fit PEO for each client company based on their specific requirements. The aim is to find the best match at a price acceptable and advantageous to the company.

Why do you need a broker when you can do it yourself?

Well, if you find the need for a PEO, in all probability, you must be looking for relief from your HR management challenges, or you want to focus on the more critical activities in your business. So why burden yourself more by handling the tedious and time-consuming process of looking for the right PEO for your operation? Why not let the professional do it for you?

PEO brokers and PEO network

PEO Brokers typically keep a network of PEOs of various specializations and competencies to serve the multiple needs of the clients. It is from this network that they choose whatever the clients need.

Brokers are responsible for doing the due diligence on each PEO in their roster to protect the clients. They must check on their capabilities, track record, financial standing, organizational capabilities, and other relevant information.

What kind of services can a PEO broker provide for my business?

PEO Broker's objective is to facilitate the finding of the right PEO for the company. It saves the company time, resources, and effort in searching through hundreds of PEOs in the country. Not only that, they save them the cost of mistakes.

Services PEO brokers provide

Analysis of the company's human resources (HR) operation, their needs, and how PEO can help

To enable PEO brokers to help you, they must clearly understand your company's operations, especially your HR activities, the challenges, and the help you expect. These they can do by interviewing relevant individuals in your organization.

Strategizing for the company

With all the gathered information, they can then form a strategy to present to the company representative.

Vetting PEO options

Not all PEOs have the same capabilities. They also do not offer the same services. Some are niched to specific industries, locations, and activities. With this ready information, a broker should be able to come up with a few names for the company to consider.

Solicit proposal from the shortlisted PEOs

Now it's time to fill in the PEOs of the required services of the company and ask for proposals. The clearer the broker can relate the requirements, the more accurately the PEO can respond. The broker should be ready to answer questions from PEOs.

Discuss each proposal with the company,

With proposals in hand, the broker can then discuss each with the company explaining the pros and cons. Should the company representative decide to talk to PEOs, the broker can facilitate it and assist during the discussion.

Help in the negotiation

The broker's experience and the size of their PEO network can help in the negotiation when the company has decided on a PEO by leveraging the offer of other PEOs.

Discuss with the company the contract with the chosen PEO

Helping the client read through the contract, highlighting the salient points in the agreement, is one of the responsibilities of a PEO Broker.

Follow through

Brokers can monitor developments once the PEO is onboard. They can address suggested changes or adjustments should there be a need.

Are there any risks associated with working with a PEO broker?

Yes, there are, as in any other business decision, but they are far from being unavoidable and uncontrollable.

These are the things you should avoid in PEO Brokers

Dishonesty

This includes false claims about their experience and networks, among others. If they can be dishonest about these things, they can be unethical in anything.

Non-neutrality

Brokers should have the best interest of the company at heart. If they unjustifiably favor a PEO over another, you can't expect them to look after your interest.

Non-service-oriented

Let's face it, PEO brokerage is a business. But, unfortunately, some are more after the pay than doing an excellent job.

Their intention for service is evident in how thorough they are in their approach and the consistency of their efforts.

Limited PEO network

Limited choices are not much of a problem if you only have typical HR management requirements. You don't need a niche PEO in this case.

But, if your operation is unique, having a limited PEO to choose from may limit your options. As a result, there is a chance that you might miss the absolute best fit for your company.

However, the good news is that these risks are avoidable if you do your part to assess and investigate before deciding on a PEO Broker. Check their track record and talk to character and business references.

Working with a brokerage firm is also a plus as you have a company that must value its reputation. They also often have a more extensive PEO network,

How much does it cost to work with a PEO broker?

Different PEO Brokers charge differently. Some individual brokers get to share the commission with the sales agent of the PEO. No additional cost for the company.

On the other hand, the more prominent PEO Brokers charge standard industry rates paid by the PEO company. So yes, they earn from what they're doing, but one of their tasks is to help you save on your HR operation. If they can help you realize that, then that means the cost of hiring them must not cost you anything.

For more information about PEO Brokers, contact us today!

Beginners Guide To PEO Brokers - FAQs