The latest statistics from NAPEO (the National Association of Professional Employer Organizations) show that roughly 15% of all employers with between 10 and 99 employees use PEOs to meet their human resources and accounting needs. This represents more than 175,000 companies and businesses.
But when choosing the right PEO, it is often necessary to work with a PEO brokerage service like NetPEO. Brokers work with client businesses to create a master plan of services they need in the HR and accounting departments.
What Is a PEO Broker?
The job of a PEO broker is to connect clients with the right PEO that fits their needs. There are hundreds of PEO types, too many for the average business owner to sort through. By working with a broker on your needs, you can get the help of an expert to choose the right PEO for you.
PEO Brokers Can Help Your Business with Things Like:
Finding a PEO That Gives You what You Need
While most companies will find that the best option is to outsource their entire HR and accounting departments to a PEO, some may only wish to use a PEO for select services. NetPEO allows client business owners to select the PEO services they want to use on an a la carte basis.
PEOs in our nationwide network offer many varying services to client businesses. These can range from mundane paperwork issues to the development of policies. Examples of the services provided by our partner PEOs include:
- Payroll administration
- Recruitment strategies
- Development of employee harassment policies
- Risk mitigation
- Compliance with federal and state labor regulations
- Workers’ compensation claims
These are necessary services for businesses, but having a full-time, in-house staff can become far too expensive for new and small business owners. To save money and time, it is often best to sign a co-employment agreement with a PEO so that they can begin providing those services to you at a lower rate.
Handling Rate Negotiations on Your Behalf
Another way that a PEO broker like NetPEO can help is by finding a PEO that suits the payment structure that best fits your company. Primarily, there are two payment methods used by PEOs, and a business may be partial to either one.
- Percentage of payroll: this is often useful to companies that have a lot of low-wage workers or that want a payment plan that will grow as their business grows.
- Flat rate per-employee-per-month: this payment method is more useful to companies with few workers on higher wages or that want a more consistent plan for yearly budgeting purposes.
By using a PEO broker, you can find a PEO that offers services that you need with the payment structure that works best for your budget. Less guesswork is involved when you align yourself with the industry veterans at NetPEO and the more than 200 years of combined industry experience held by our nationwide network of partner PEOs.
Helping You Onboard with Your Chosen PEO
One of the key distinguishing aspects of using a PEO is the co-employment relationship. Though the term may sound strange to business owners, co-employment comes with little to no risk and many benefits.
In simple terms, co-employment allows the PEO to become a legal employer of your employees so that it can administer the services reserved to an employer, such as payroll management and the provision and administration of employee benefits packages.
Unlike many other brokerage services, NetPEO sticks with you throughout the duration of your company’s co-employment agreement with our partner PEO. We regularly contact you to learn about any issues you may have and solve them, showing our dedication to client satisfaction.
Helping You Create Better Benefit Plans
In fact, co-employment comes with benefits like better, cheaper employee benefits packages. Since a PEO is a co-employer with all of its client businesses, its pool of employees is much larger than any single company’s.
This means that it has better bargaining power to attain high-tier benefits and can spread the cost of those benefits out over a larger group of individuals, lowering the individual cost.
Helping You Understand the Co-Employment Relationship
Business owners do not lose control of their company in any way when engaged in a co-employment relationship. The final say in hiring and firing is still theirs. They dictate the services that the PEO performs, and they maintain control over the direction of their business.
On the flip side, your broker can help you with figuring out which tasks need to get released to the PEO company so that they can do their job and you get the most benefit from their assistance.
Why Hire a PEO for Your Payroll Needs?
Business owners turn to PEOs when they reach a point when the business of running their business outweighs their time. Each person you add to your payroll adds another layer of complexity and takes away more hours from your day.
Also, when you pass certain employee thresholds, you’ll have to account for new laws that can throw all your current processes awry. By working with a PEO broker to find a PEO that fits your payroll need, you’ll have professionals on your side that can handle these thresholds.
Do I Need a PEO for HR Needs?
You might! PEOs are often used by small businesses to handle their initial HR needs. Hiring a full-time HR person in a small business can be too expensive for a small business, but they need that expertise to handle HR issues.
Letting a PEO handle it will free your time up and keep your business out of hot water from employee disputes. Many PEOs also have recruiting and interviewing services as part of their HR package, which can save you a lot of time the next time you expand your business.
Conclusion:
At NetPEO, we have achieved a 95% client retention rate. And all our clients say that they are either satisfied or extremely satisfied with our PEOs’ services. These facts put us at the top of the PEO brokerage industry.
If you are a business owner, particularly with between five and 100 employees, finding a PEO may be vital to the growth and success of your company. Get in touch with one of our representatives today by calling us or filling out the form on our contact page. We will get back to you within 48 hours and begin discussing a service plan for your business.
