What Should I Look For in a PEO?

Would you like more time to run your small business? Administrating HR matters, such as payroll and taxes, can take 80 or more hours per year small businesses. Professional employer organizations (PEOs) offer an opportunity to streamline the operation of your company by handling HR key functions for you.

When looking for a PEO, it helps to have experts on your side. NetPEO has brokers who will work with you to find the right PEO for your business. To get a head start on your PEO search, call (678) 376-1212 today.

Related: How Can a PEO Assist With Workers' Compensation Claims?

Before You Look

Before you start your search for a PEO, you should understand what a PEO is, what it can do for your business, and what your business needs. You should also keep in mind that your management style should play a role in your decision-making process. Keeping these factors in mind can save you a good deal of stress.

PEO Services

PEOs offer HR and accounting outsourcing solutions, typically for businesses that employ between five and 500 employees. With over 900 PEOs in the industry, there is plenty of variety to the sorts and scope of functions offered by these organizations. Typical services offered by a PEO include:

• HR legal compliance
• Workers’ compensation claim management
• Payroll
• Benefits
• Employee self-service options
• Company handbook creation
• Recruitment strategy and implementation
• On-boarding

PEOs offer these services in a number of ways to match your management style. These services may be bundled together as a full HR team replacement or used individually to complement your existing HR structure.

Not Sure What You Need?

If you’re not quite sure what your business needs are, NetPEO is here to help. When you call (678) 376-1212 to speak with one of our experienced brokers, we conduct a thorough analysis of your initial business needs. We’ll help you nail down functions you need the most help with, and what to expect in your search for the right PEO.

Related: How Does a PEO Make Money?

Things to Look for in a PEO

When you know what your business needs and you have an idea of what you want from your partnership, you’re ready to look for a PEO. Not every PEO is right for your business, and you’ll want to make a decision that’ll help your business grow.

Experience and Expertise of the PEO

When you sign a co-employment agreement, you’re trusting a critical part of your business to another organization. You need to be completely comfortable that these functions are handled by experts. Mistakes can cost you tens of thousands of dollars in fines from your state government or the federal Department of Labor (DoL).

You should look for the following information about the PEO to evaluate the quality of their work:

• Years of operation
• Experience of senior staff
• Certifications of employees
• Status as a Certified Professional Employer Organization (CPEO)
• Their internal retention
• Average retention for clients

Technology

One of the key benefits of partnering with a PEO is improved access to technology. Your PEO partnership should provide you with additional tools to make administrative tasks simpler. Ideally, your small business should be looking to gain access to technology usually reserved for larger firms. You should be looking to assess:

• The PEO’s payroll and other administrative software
• Employee self-service options
• Access to your data
• The training on new or proprietary software

Benefits

One of the key advantages for small businesses partnering with a PEO is access to improved employee benefit packages. Your employees may be able to access better, more affordable health insurance after you sign up with a PEO. They may also have access to retirement plans, which many small businesses struggle to provide.

However, not all benefits packages are equal. You’ll need to talk with your potential PEO partner about:

• How costs of health insurance are handled
• Employee options for customizing the policies
• The frequency of changes to the benefits packages
• Inclusion of additional benefits, such as wellness programs

Related: What Should I Look for in a PEO and Employee Leasing?

If You’re Looking for a PEO, Turn to an Experienced PEO Broker!

Once you start your search for a PEO, remember that these are businesses looking to land you as a client. Getting the right information and being sure that you’ve made the right choice can be difficult under these circumstances.

However, you don’t have to look for a PEO by yourself. NetPEO’s brokers are here to help you navigate the PEO industry. Our PEO brokers work with business owners just like you to reduce the pressure, so that you make the best possible decision for your business.

Our mission at NetPEO is your complete satisfaction. Our continued dedication to this pursuit earned an industry-leading 100% client satisfaction rating. We work for you, not for the PEOs.

Ready to navigate the PEO market with NetPEO? Call (678) 376-1212 or use the form on the sidebar today!