You can’t match the benefits of a professional employer organization when it comes to selecting an efficient and cost-effective human resource solution (PEO). PEOs may provide goods and services that satisfy all of a company’s particular demands while also lowering expenses, decreasing risk, and enhancing productivity, whether you’re seeking an all-encompassing solution to your HR needs or something to augment your present people and procedures.
A company engages in a co-employment agreement with a PEO provider, providing the PEO the power to operate as the company’s “employer of record” for its employees. This allows PEO customers to spend their time and efforts on building their business while the PEO handles employment-related chores on their behalf and assumes many of the administrative obligations and liabilities that come with having workers. Take a look at the infographic below to discover some of the advantages PEO clients enjoy:
Congratulations if you’ve determined that working with a PEO is the next logical step for your company. Many of the advantages stated above will be available to you soon. However, before you sign on the dotted line, there are seven things you should ask a PEO to ensure they’re the ideal partner for your company:
What will I be paying for exactly?
The majority of PEOs bill in one of two ways: as a percentage of total payroll (usually between 3 and 8%), or as a flat per-employee-per-year (PEPY) price. In each of these circumstances, the actual pricing or rate is generally determined by which pre-packaged service bundle you choose. Make sure you understand exactly what you’re receiving before signing on the dotted line. Request that the bundle is broken down into line items so that you can understand exactly what services you are receiving and what you are not getting. If a vital service you’re seeking isn’t included (for example, Affordable Care Act compliance support), you may need to go back to the drawing board.
What can I expect in terms of service?
When you engage a PEO, they work as an extension of your company. It’s your PEO’s obligation as the employer of record for your workers to be available to address your queries concerning employment-related issues, as well as those of your employees. That’s why it’s crucial to know who will be looking after your account on a daily basis. Will you have an HR counselor assigned to you? Will you be able to reach out to an employee benefits specialist? If your workers forget how to reprint their W-2, who will they contact? While these questions may not seem important during the first stages of hiring a PEO, understanding how your relationship with your PEO will operate can have a significant influence on the partnership’s future success.
What type of technology or software does your company offer?
Access to new and improved human capital management technologies is one of the numerous benefits of collaborating with a PEO. Ask about the technology they have available, especially if you want to keep utilizing applications you’ve previously purchased or if you have unique technical requirements.
Do you provide my staff with any training or professional development?
Payroll and benefits management is only a small part of what human resources entail. Professional development and employee training possibilities appeal not just to new applicants, but also to present employees, allowing you to maximize their potential. Whether this is an essential part of your company’s culture, check to see if your PEO provides these services as well.