In this article we give you the questions for the answers you need most when evaluating a PEO solution this year!
Many organizations are turning to Professional Employer Organizations (PEOs) to streamline operations, from payroll to benefits administration while saving money on employee benefits.
If you're a certified HR professional considering a PEO partnership, it's imperative you can answer the critical questions below, organized by topic.
Credentials and Accreditation
Before diving into services or costs, ascertain the credibility of the PEO.
Is the PEO accredited by the Employer Services Assurance Corporation (ESAC)?
Have they attained the Certified Professional Employer Organization (CPEO) status with the IRS?
Understanding the range of services provided is key to determining alignment with your needs.
What services are provided, including payroll, benefits administration, HR consultancy, and compliance support?
Can the organization opt for à la carte services, or are they bundled?
How customizable are these services?
Employee benefits play a pivotal role in recruitment and retention.
What types of benefits, such as health, dental, and retirement, are available?
Are there options to choose from multiple insurance carriers or plans?
Are any unique or specialized employee benefits available?
The right tech can significantly improve HR efficiency.
Which HRIS platforms are employed or is it proprietary, and how user-friendly are they?
Is mobile access available for employees?
How is data security assured?
Employee Relations and Support
The human element of HR can't be overlooked.
How are employee issues or inquiries managed?
What kind of support is available for training or onboarding?
For 3rd party consultants?
With changing laws and regulations, compliance is paramount.
How is the PEO updated with federal, state, and local employment laws?
What support is provided for multi-state or even international compliance?
Are there assurances for accurate payroll tax processing?
Experience and Client Base
Past performance often indicates future results.
Which industries or sectors does the PEO typically serve?
Can they provide references or testimonials from similar partnerships?
How large is their current client base?
Pricing and Contractual Details
Transparency in pricing can prevent unforeseen costs down the line.
How is the pricing structured: percentage of payroll, flat fee, or another method?
Are there hidden costs or additional charges to be wary of?
What are the terms for contract lengths and early terminations?
A lower ratio often implies more personalized attention.
How many HR specialists are available for each client?
What is the typical ratio of PEO representatives to client employees?
Hope for the best, but plan for the potential issues.
How are conflicts or disputes managed?
Is there a set procedure for resolving conflicts between the PEO's and the client's interests?
Switching to a PEO should be seamless.
What steps are involved in the onboarding process?
How does the PEO address potential hiccups during the transition?
Always know the exit strategy.
How is the offboarding process managed should the partnership end?
What are the company's responsibilities during a transition away from the PEO?
Selecting a PEO is a decision that impacts the entire organization. Thus, thorough research, including seeking out reviews and testimonials, is essential.
With the right questions in hand, certified HR professionals can ensure they choose a PEO that aligns seamlessly with their company's unique needs.
Thinq HR & Insurance Services is a full service brokerage that offers both traditional employee benefits along with PEO options from the world's largest PEOs and even the best kept secrets!
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