As companies continue to use professional employer organizations (PEOs) to outsource their human resources and accounting needs, the market for these organizations has increasingly expanded. Though it can be overwhelming to choose a list of possible PEOs for your business, NetPEO is here to help.
According to the National Association of Professional Employer Organizations’ industry statistics, the United States has more than 900 active PEOs that serve more than 175,000 clients nationwide. It is easy to see why business owners may have difficulty selecting from such a wide pool of options, but there are simple steps to take in order to generate a comprehensive list of PEOs that fit your company.
Step One: Audit Your Company’s Needs
PEOs like the ones in NetPEO’s nationwide network exist to ease the burden of HR and accounting services for business owners and in-house staff. In order to come up with a list of acceptable PEOs, the first step is to assess which services your company requires. This will give you a profile of the kinds of services that the right PEO would have to provide.
NetPEO works with client business owners to develop this profile by performing an extensive interview. Some of the services provided by our networked PEOs include the following.
Employee Benefits Administration
One of the advantages of signing a co-employment arrangement with a PEO comes in the area of employee benefits packages. PEOs often are able to use their status as a co-employer to exercise better bargaining leverage for high-tier benefits packages while lowering the individual cost of those benefits. Not only does this give your employees a better deal, but it usually leads to lower employee turnover rates.
Reduction of Risk Profile
A PEO can work with business owners to lower the company’s overall risk profile. This can come in the form of increased safety standards, better financial management and budgeting strategies, a revamping of recruitment techniques, development of employee anti-harassment policies, and more. Having a low risk profile is important for attracting investors, partner businesses, and clientele, and it also improves the long-term viability of a company.
Labor Law Compliance
There is a seemingly endless list of local and federal labor laws, and no business owner can be expected to familiarize themselves with each of them. Fortunately, PEOs like the ones in NetPEO’s nationwide network employ experts in legal compliance issues. They can help business owners navigate such regulations as the Family and Medical Leave Act, the Americans with Disabilities Act, changes to the Affordable Care Act, and more.
This is a small sampling of the many, varied services provided by PEOs in our network. PEOs can handle virtually all HR and accounting needs, so finding one that fits the specific needs of your business is vital.
Step Two: Evaluate Pay Structures
When generating a list of possible PEOs with which you and your company would like to partner, it is important to consider the pay structure and cost of a PEO. In general, PEOs cost less than hiring a permanent, in-house HR and accounting staff. However, there are two primary payment structures that different PEOs use, and each can have its advantages for businesses in specific situations.
Payment as a Percentage of Payroll
The first method of payment used by PEOs is to take a percentage of a client company’s payroll each month. This is useful for companies who have a lot of workers on lower wages and because the pay structure grows in direct proportion to the business.
One Flat Payment Per Employee, Per Month
Another method of payment used by PEOs is to charge one flat fee per employee each month. This may be a better option for companies with a low number of high-paid employees, as it can be less than a percentage of monthly payroll. Also, this method often is preferred by businesses that need more predictability when budgeting.
Remember: Partner With a PEO Brokerage
By listing the service needs and budget restrictions of your business, you can generate a list of PEOs that fit your company. However, a much easier and less stressful approach is to go through a PEO brokerage service like NetPEO. After all, listing your needs and payment preferences only gives you a roadmap to the kind of PEO that suits your business. You still need to contact PEOs for individual interviews, and this can take an inordinate amount of time for busy business owners.
Instead, partner with NetPEO. After taking down all of your preferences and needs, we match your company’s profile to a handful of PEOs in our nationwide network. Essentially, we do the PEO-shopping for you! When we have the list whittled down to the best of the best, we present it to you and you make the choice. Instead of having to choose from the more than 900 PEOs in the country, you can choose from a small list of PEOs that closely fit your needs.
Start Looking For Your PEO Today
For a FREE consultation with our PEO experts, get in touch with NetPEO by calling 678-376-1212 or by filling out the form on our contact page. One of our representatives will respond shortly and begin the process of finding the best PEO to suit your company’s HR and accounting needs.
