We know that nothing is permanent except change. Yet we search for comfort in the familiar faces, places, systems, processes, etc. We value loyalty from our customers, as well as from our partners.

Thus, it becomes harder to make changes when you've been with a PEO company for some time now. But if the same issues and problems you encounter with your PEO keep recurring, it's time to consider leaving.

Conduct a PEO analysis to reach an informed decision to leave your PEO. A complete PEO analysis considers what a client or an organization needs and how to achieve it in their business.

But before you jump into conducting an analysis, search for enough information. Also, learn to watch for signs telling you it's time to review your partnership or to move to another PEO firm.

So, keep reading if you don't want to end up in the same situation as those failed PEO and business owners' relationships!

At the end of this discussion, you'll have access to our practical checklist that you can use to conduct a fundamental PEO analysis on your PEO.

Here are the top 4 signs that will tell you that it is time to move on to another PEO service provider.

Increased costs

When conducting a PEO analysis, you’re looking for information on the cost of running your company through PEO employment. The standard practice is to pay by base pay percentage or by the number of PEO employees you require.

If your PEO firm increases its rate at a percentage that can hurt your finances, it’s time for you to move your business to another PEO. Be alerted also to sudden and immediate increases; and when you negotiate, they do not budge or cannot meet the targets you want from them.

Poor customer services

Customer service is the heart of a business in any industry. Even PEO companies must strive to have a high standard of customer service that satisfies industry clients. Customer service is one of the things PEO analysis considers, and a poor one is a sign for business owners to move to a new firm.

Here are some factors PEO analysis gauge as poor PEO customer service and or related issues

Poor response time to complaints

A customer service representative may not be able to assist you promptly if they face a lot of calls or emails from other customers.

But a good PEO service provider has a dedicated team that provides immediate responses to queries and can solve problems in the shortest possible time. So if you find yourself with poor responses, it's time to look for another company.

Slow processing times on claims

Slow compliance. It means the company is not taking its work seriously. It also means that management is not trying hard to provide exemplary services.

Irregular Communication

You can tell when communication has broken down because one side is usually very aggressive while the other side ignores all attempts at communication whenever possible. Therefore, when irregular communication makes it difficult for business owners to achieve their business goals, it's time to search for another business partner.

Underperforming PEO

You're not getting the service you need from your PEO organization or not satisfied with the customer service you receive from your PEO firm.

Also, when your organization is expanding, and your PEOs failed to perform well, or they are not enthusiastic enough to help in the growth of your business, you've reached an impasse. Get another provider.

Transparency with billing or payments

Billing and payment transparency is essential for clients. For example, failure to provide a proper invoice may lead a professional employer to move to another PEO service provider. As much as possible, we want seamless transactions to avoid confusion or unnecessary expenses.

Transparency in processes and PEO benefits

Finally, a PEO firm may have overly complicated paperwork or client onboarding process to hide deficiencies in their system. A PEO service provider must be transparent in their strategies and avoid charging business owners extra. The management must also be transparent to its employees. The employees must have free access to helpful industry resources, benefits like health insurance, etc.

Unhappy employees

One goal of conducting PEO employee analysis is to figure out employee satisfaction. Unhappy employees cannot be productive.

In addition, as your business grows, it is best to conduct a PEO analysis as your demands and business processes may change. Start looking for new PEOs if your PEO is not happy about the changes in your business and refuses to make necessary arrangements and or needed services.

On the other hand, if your employees are not happy about your PEO, you might want to consider changing PEO with ones that can fit the people and culture in your company.

Practical checklist to consider on PEO analysis

After reading the above discussion, you may have already decided to move from your PEO firm. But what can you do before taking action?

As promised, below is an essential checklist you can use for your PEO employee analysis. It is a practical guide, but you can always contact a PEO broker if you want professional services in conducting PEO analysis.

Reasons to leave your current PEO:

They do not help with growth initiatives.
Your organization can't get answers from them when they need them most.
They lack transparency.
As a partner, they have made it difficult for your employees to attract new talent because people aren't sure if they will fit in or not.
Their packages don't make sense anymore due to changes made by other companies within their industry sector.
Complaints about their customer service are prevalent.
They haven't provided benefits over time to your organization.
Their rate increase is not in your budget.
Communication failure

Conclusion

The above is helpful information but might not be enough for you to decide. So Dinsmorsteele has created its full PEO analysis metrics and PEO evaluation to assist you better. The aim is to make sure business owners receive their money's worth and can decide whether to transfer or not.

As PEO brokers, we aim to help business owners seamlessly transition from one PEO firm to another. Our system also includes assisting our client's needs when they choose to transition away from Dinsmorsteele.

Do you need professional help with full PEO analysis? Contact us.

Top 4 Signs Why You Should Leave Your PEO