PEOs or professional employer organizations are becoming more and more popular for small and mid-size businesses to partner with to assist in their growth. While they have existed for a while, PEOs are increasing in popularity as businesses are faced with more compliance and regulatory issues. PEOs assist business owners in managing all aspects of their HR so they can focus on what they went into business to do.
What Is A PEO (Professional Employer Organization)?
A professional employer organization (PEO) provides comprehensive HR solutions for small and mid-size businesses. Payroll, benefits, HR, tax administration, and regulatory compliance assistance are some of the many services PEO’s provide to growing businesses. Small businesses that work with a PEO grow 7 to 9 percent faster, have employee turnover that is 10 to 14 percent lower and are 50 percent less likely to go out of business.
10 Factors For Evaluating A Potential PEO
When it comes to hiring a Professional Employer Organization in Northern California, you’re likely wondering which questions to ask. While making the decision to work with a professional employer organization (PEO) firm is a wonderful one for most companies, it pays to spend the time and energy needed to ensure the PEO you find is the right one for you.
1. Regular Communication From Your PEO
Maintaining regular contact with your PEO is a major step toward success, and hammering this out early can help you learn whether or not the PEO is right for you. Ideally, you will be able to customize a program that fits your needs and the needs of your company.
2. Calculating Your Bill
While some PEOs bundle their billing into a flat rate, others (although this is somewhat rare) handle billing on a project-by-project basis.
3. Your touchpoint Support
It’s easier to develop a good relationship with a PEO if you have one consistent point of contact. With this in mind, ask the PEO who you will be dealing with every day, and then request some additional details about their background, training, and expertise. This can help you feel more comfortable with the PEO and start your new relationship on the right foot.
4. Skills And Abilities
If you need assistance with specific things, like unemployment claims or employee benefits, ask your PEO about their expertise in these areas. It’s critical to find a PEO with experiences in the areas you need and being upfront with your questions will help ensure a better experience for both you and the PEO.
5. online options offered
As PEOs have adapted to our modern, tech-dense world, many have begun to offer online processing options that were previously unheard-of. These may include the ability to submit payroll online and the ability for your employees to access paystubs online.
6. training Availability
Every small business needs training services at some point, and finding a PEO that provides them can go a long way toward helping your company grow. Whether you need the training to help your employees adapt to new standards, or to help your business stay competitive in a fast-growing industry, a good PEO should be able to offer training services to uplift your business.
7. Reachable references
Every good company has references, and a PEO is no different. To ensure you’re working with a PEO with a demonstrable history of success, ask to validate the PEOs references. In addition to helping put your mind at ease about the company’s capabilities, this can also help you understand the PEO’s strengths and weaknesses.
8. Safety Compliance And risk-management
If you’ve found a quality PEO, the firm will likely be able to help you lower costs such as worker’s compensation expenses through proactive risk management. To gauge these programs, ask your would-be PEO what they offer regarding safety programs, claims management, and proactive approaches.
Keep in mind that a good PEO will want to analyze your company thoroughly before accepting you as a client, and any PEO who is willing to forgo this step is one to be wary of.
9. employee benefit plans
A good PEO will offer employee benefit plans designed to attract and retain the best employees out there. To ensure your PEO is cutting the mustard, ask what they offer for employee benefits. Typical items on the hit list include life insurance, savings plans, and corporate wellness programs.
10. percentage Based Fees
Some PEOs set their fees based on a percentage of your total payroll. Knowing this upfront can help you budget and plan for the cost of outsourcing your HR.
Selecting A PEO Is A Big Decision So Ask The Big Questions
PEOs offer many benefits, and asking these ten questions can help you find the perfect PEO for your company.