Are you getting overwhelmed in managing HR, payroll, and compliance for your Small and Midsize Business? Then partnering with a Professional Employer Organization (PEO) can provide you with an effective solution.
A professional service provider helps you offload responsibilities and focus on dimensions that help you grow. However, to choose an appropriate solution provider for PEO, we will outline the key metrics that you need to consider.
Please note that these factors are a part of the equation, so partnering with the right PEO professionals like us helps us make an informed decision for your unique needs. Let us begin with the metrics first.
5 Ways to Evaluate PEO Services for Your Small and Midsize Business
Here are five simple strategies following which you can choose the right PEO for your business:
Cost of Services
The cost of services is one of the major considerations that you need to evaluate when you opt for a PEO. Each PEO offers a unique fee structure for the business, and some of them might charge a flat fee.
On the other hand, others might charge a percentage of the total payroll for your charge. However, it is not j about the fees but also what you are getting in return for these. Also, consider whether they provide scalable services for your Business as it grows.
Service Offering and Support
Please note that not all PEOs offer the same level of service, and it depends on what you are opting for. Some PEOs can provide a full range of services, while others only help in specific areas of compliance. The key is to determine if you need payroll management, health benefit administration, worker’s compensation, and legal support, etc.
Besides that, you need to find out the level of support the PEO is providing. Does it provide you with a dedicated account manager? Are they responsive and proactive in addressing issues? Understand the breadth and depth of the services before deciding.
Compliance and Risk Management
One of the most effective ways of working with PEO is outsourcing compliance. However, choose a company that has a strong track record and keeps clients compliant with state and federal regulations.
Compliance management is necessary regardless of employee classification, labor laws, or healthcare regulations. Poor compliance might lead to costly penalties and the loss of profits for the businesses.
Avoid PEOs that Outsource Primary HR Functions
A primary benefit of working with a PEO is addressing the HR needs. Such expert HR functions help you take a proactive approach to managing your account. When the PEO companies further outsource the HR functions to a third party, it signifies further distancing from your organizational needs.
Having a partner that offers both PEO and day-to-day HR functions helps attract more client growth for your organization. Contact your PEO providers and ensure they are not outsourcing:
- Payroll processing and administration
- Benefits administration and planning
- Worker’s compensation and managing risks
- Recruiting and retention services
Flexibility and Providing Tailored Solutions
Not all PEO companies provide customized solutions for businesses. Some PEOs also provide a one-size-fits-all approach. When evaluating the PEO services, find out if it is providing you with custom-fit solutions. Ask for live demonstration or contact with their business team to look for:
- Employee self-serve tools
- Educational and Training Resources
- Managerial Tools
- Reporting and Functionality
- Onboarding Solutions
Final Words
Choosing proper PEO services goes beyond just assessing their cost and basic services. Metrics like services offered, customized solutions, compliance, risk management, etc., must be considered. Partner with the right PEO companies that offer you custom-fit solutions for PEO, payroll, risk management, and workers’ compensation.
If you are looking for a PEO company that helps mitigate all these needs, contact us. For more information regarding HR, payroll or other compliance necessities, go through our blog section. We will be happy to assist you.
Reference Links
https://extensishr.com/resource/blogs/perfect-peo-for-your-business/
https://insourceindia.com/blogs/top-10-considerations-for-selecting-a-peo-provider-for-your-company/
https://www.trinet.com/insights/what-is-a-peo
https://remunance.com/blog/how-to-choose-the-right-peo-partner/
https://www.adtsolution.com/post/7-ways-peo-services-help-grow-your-business
https://martinowest.com/blog/12-signs-a-peo-could-be-beneficial-to-your-business/
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