PEO Selection & Transition
Why use a PEO Broker?
First off, if you're scratching your head at the word "PEO," head over
The undertaking is straightforward. It empowers you to focus more on building and expanding your company than finding solutions to issues that a PEO can take care of.
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Are you looking at ways to ramp up your business and planning to acquire a Professional Employment Organization’s (PEO) services to help you do it?
Yes? You have figured out the aspects of your business that you need a PEO to help you with. But your mind is playing tug-of-war between hiring a PEO or not because you are afraid of making a mistake in choosing one that would best suit your needs.
But wait, do you know that you can get a PEO broker to zero in on the PEO that is a perfect fit for you?
Why not consult one and sit down with them to ensure that your business needs assessment is correct?
There might just be areas where you need help from a PEO but did not realize it.
Why not talk to a PEO broker and get a PEO analysis for your business?
So, what is a PEO, PEO Broker, and PEO analysis?
Many ordinary business workforces have never heard of PEO brokers. So let's dig in a bit.
A PEO is an outsourcing firm that engages with small and medium-sized businesses to perform payroll, employee benefits, and other HR duties.
On the other hand, PEO brokers are individuals or firms representing and managing different PEOs. They usually maintain a pool of PEOs who are certified experts ready to provide a service after being matched to a business.
Lastly, PEO analysis is a needs assessment of your business to determine what areas you require a PEO’s help. With this, the PEO broker then matches you with the best PEO.
The undertaking is straightforward. It empowers you to focus more on building and expanding your company than finding solutions to issues that a PEO can take care of.
Therefore, your PEO broker assists your business by facilitating the search for a PEO for you and by helping ensure satisfaction throughout your working relationship with themselves and the PEO.
As a time-saving measure
According to authorities and business owners alike, a PEO broker can:
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Almost ditch the time wasted on internet searches for products and services. To work with a PEO broker means no frustrating and time-consuming internet searching.
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PEO brokers alleviate frustrations and take the pressure off employers or executives.
Instead of having to discover a range of PEOs, meeting them, matching their
services and prices, and taking part in otherwise tiresome work on what should be
a simple matter, you can delegate this to the PEO broker.
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Then, when it is time to select, the client is privy to a rundown of the positives and negatives of each PEO, then choose the one they want.
PEO brokers will help save you money
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Brokers allow you to select the services you want on an a la carte basis. They help ensure that you do not pay for services that you don’t need.
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Brokers are competent and leverage their experience and relationships to get you the best price possible.
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Brokers offer wholesale outsourcing, and this option is often less expensive than having an in-house, full-time accounting and HR staff.
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Creating a buyer's market
Employing a PEO broker allows you to create a mini-market where the PEOs in their
group have to compete to earn their business. This can help reduce prices and
increase quality.
According to the National Association of Professional Employer Organizations(NAPEO),
roughly15% of all organizations in the United States sign-up for a PEO. Considering those PEOs fight for the right to work with you is an incentive that you do not want to pass up.
Related topic: Setting up for Retirement - Benefits of Having A PEO Broker Vet Your PEO
PEO brokers have much more expertise
PEO Brokers have a solid understanding of what you as a business owner-employer goes through regularly relating to the headaches of managing all the HR components of your business.
Therefore, expert advice and support are at your fingertips because:
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With a PEO broker, you can ask all the right questions upfront.
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They will monitor your account and help you make any changes you want when you want them.
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They allow you to get additional services that you didn't need at first or help you shop to ensure you have the best price.
Overall, the advantages of hiring PEO brokers for your business include:
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Provides easily accessible services, which include outsourcing standard business services like human resources and accounting services.
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You handle particular demands like finding a payroll service that includes full-time and part-time employees, independent contractors, telecommuting workers, contract workers, and seasonal employees.
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You find someone experienced in handling workers' compensation claims.
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Payroll management services. Most small business owners barely have time to process payroll.
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It provides experts familiar with local regulatory compliance issues.
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Risk consultancy
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Finding experienced workers with knowledge of creating and administering employee benefits packages
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Researching product and material prices and their quality level
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Developing procedures for smooth onboarding of new employees
Some don't recommend working with a PEO broker.
Here's why:
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Working with brokers inflates the cost of working with a PEO. The PEO absorbs the cost of engaging a PEO broker and is then passed along to the employer who hires the broker.
On the other hand, if an employer approaches a PEO directly, it's more economical
because a PEO doesn't have to pay for a go-between.
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PEO brokers may be on the PEO side they're awarding. Lots of brokers may get paid more by one PEO than others or are otherwise enticed by PEOs.
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Using a broker doesn't automatically mean you get the best. For example, some brokers require PEOs to pay to be on their "list."
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The quickest way to get quotes is through a broker, but it doesn't mean you're getting from the best of PEO selections.
It's favorable to have a broker if you know nothing about PEOs and you don't have the
time or energy to find and examine your options.
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Brokers present but don't follow through on service because they are not involved in the PEO's service delivery. They cannot answer all questions you will inevitably have following a proposal conversation.
A PEO broker can be the life preserver you need to keep you from drowning on the Internet and get you to the safe shore of the right PEO for you.
However, if you are unsure who to partner with, consider the pros and cons provided for both the PEO and PEO Broker. First, talk to both of them. Then, decide which one offers the best solution.