Addressing Employee Concerns About a PEO Change

IWhen you announce an upcoming PEO switch to staff, you will likely hear questions like “will my benefits change?” or “will my paycheck arrive on time?” 

It’s completely natural for change to trigger uncertainty and fear, but as a smart business leader with the right professional employer organization broker, you can quickly transform employee concerns into renewed confidence about your company's future. Here’s how.

Begin With Clear, Transparent Communication

Transparency is your most powerful tool during the PEO transition process. Schedule an all-staff meeting or a series of gatherings to explain why you're making the change and how it will benefit employees and the business as a whole. Even if you had challenges with a previous PEO, try to focus on the positive aspects that made you decide to make the change, whether it’s better benefits, improved HR support, or enhanced payroll services. When employees understand that the transition strengthens the company along with their benefits packages, they're more likely to embrace it.

Address Any Concerns Promptly and Honestly

The most common worry typically revolves around benefits changes. Most employees fear they'll lose coverage or face higher costs. In reality, PEO changes can often bring with them access to better benefits at the same or lower costs.

If possible, create a side-by-side comparison chart showing existing benefits versus the new PEO benefits, including any changes or similarities from current plans to help employees make an informed benefits choice. Highlight improvements like expanded coverage options, lower deductibles, or additional services. If there are any significant shifts, explain them clearly and provide timeline details for when new benefits take effect.

Create an FAQ Document

Work with your HR department (or ask for some help from BestFit PEO) to develop a “Frequently Asked Questions” (FAQ) document to proactively tackle common questions from employees. As you move through the process, you can continue expanding your FAQ as new employee questions emerge.

Leverage Broker and PEO Expertise

Both your PEO broker and your new PEO can help serve as communication allies throughout this process. While your broker can offer advice and guidance, many PEOs provide employee presentation services where representatives directly answer questions about benefits, payroll, and HR support. This third-party validation often carries significant weight with concerned employees and provides access to information directly from the providers.

Ready to make your PEO transition as smooth as possible?

Learn how we can help you and your employees embrace positive change.