A Professional Employer Organization (PEO) can handle payroll, benefits packages, onboarding, off-boarding, 401(k) plans, employee handbooks, workers’ comp, and HR compliance across the board with federal and state regulations. Here are a few questions you should ask to find a PEO that works best for your company.
How many employees do you have?
Many consider 20-75 employees to be the PEO sweet spot, as it can free up employers to focus on the business side of the company’s daily tasks without costing too much per employee. While some companies may not need everything a PEO has to offer, they could look into standalone HR services through an HRO. Companies of all sizes use PEOs, but because the fees are factored per employee, it may be cost-prohibitive at a certain point. While these are important things to consider, both large and small companies can benefit from the flexibility a PEO can give them.
Do you have the best benefits you can get?
When your PEO brokers benefits, they aren’t just negotiating for your company’s employees, but for thousands of other employees across their networks. This large pool of employees allows PEOs to secure better, more cost-efficient benefits packages that are usually reserved for larger companies. For smaller companies wondering why to use a PEO, this is one of the biggest advantages.
Even if your company can get great insurance packages on its own, a PEO can help navigate the confusing and ever-changing legal landscape surrounding benefits. Under the Affordable Care Act, companies are still required to provide affordable insurance for their employees. A PEO is an easy way to ensure that your company meets these requirements.
Is your company new?
A PEO can go a long way in helping get your business administration in order so that your employees can focus on opening a new business. PEOs can create employee handbooks, provide training, establish office policies, and much more. While the PEO handles the difficult details of onboarding employees and making your business compliant with state and federal regulations, you can work on making your startup a success.
What special services do you provide?
Every PEO is going to offer tax assistance, payroll, and benefits, but the best PEOs can also help your company with training, employee handbooks, and other services that can help set your company apart. Be sure to ask what a PEO will be able to offer your company as it grows.
How flexible are the PEO’s options?
HR services that work for your company when it is first starting may not be everything your company needs once it grows. Be sure to find a PEO that offers services that can grow with your company.
How do you manage benefits?
Benefits are one of the biggest advantages of using a PEO, but not all PEOs manage them the same. Your company might want the lowest possible price, or you might prefer plan stability. Find a PEO that fits your company’s same philosophy when it comes to benefits.