Five Questions Every Company Owner Should Ask Themselves Before Partnering With a Broker to Initiate a PEO Search

If your company is searching for a new PEO following a multi-year working relationship with an HR service provider, here’s something you should know...

The PEO landscape has changed drastically. It’s a buyers marketplace, with hundreds of choices. But with so many options, several common questions are bound to arise. How can I be certain my new HR provider will deliver on their many service promises? Can we ensure the impact of a PEO change is minimal for my employees? And are there hidden costs that will only come to light once an agreement is signed?

With so many unknowns and options, many small and medium sized companies opt to bring in a professional PEO broker, like BestFit PEO Services. With a broker comes deep insider knowledge to guide an organization through the search and locate the best possible match.

But before your business gets the process rolling, there are a few important things to think about. Here are five questions small and medium-sized company owners should ask themselves before initiating a broker-assisted PEO search.

Question 1: What am I missing?

As we said, there are now so many options and every PEO is different. Some emphasize mobile platforms. Others maintain call centers where all sorts of questions can receive rapid responses. Then there are uncommon or emerging services, like business planning, assistance with internal communications and even PEOs that provide AI solutions to help you track and plan for future staffing level needs. And while many of these services come at an extra cost, they may be just what you require at this point in time. In short, find out all the services you could add when making a change, then prioritize.

Question 2: What will your next benefits plan look like?

Whether we are talking about costs, services or both, employee benefits are often near or at the very top of nearly every company’s list of PEO considerations. As your company grows, you may need help finding PEO partners with several coverage options across different states. For recruitment and retention purposes, you may also wish to investigate unique services such as adoption assistance, commuter benefits or access to discounts or perks.  

Question 3: What are your current/future training needs?

Another common challenge for growing companies is training. How do you make sure everyone remains compliant? This process often requires notifications, follow-up communications and confirmation that certifications were completed on time. Or perhaps your company needs help mentoring future leaders. These are training needs that certain PEOs can fulfill using a variety of online formats to ensure engagement and effective learning.             

Question 4: Do you need recruitment help?

Think about it. The hiring process can be incredibly time-consuming as it often includes writing job descriptions, scheduling and conducting interviews, calling references and conducting background checks. Precious hours tick away whenever you replace or expand staff. It may surprise you to learn that certain PEOs can take some pretty major tasks off your plate. This includes position advertising, salary surveys and even your initial job interviews. Imagine the possibilities if your time could be reserved for meeting previously-vetted candidates and making final decisions.

Question 5: How can your next PEO help support your overall business strategy?

Finally, consider what else a new PEO could do for you. If you have unique payroll or risk management needs, certain partners can step in and assist.    

Finally, consider timing when making a switch. In a perfect world, 3-6 months is a pretty good window for initiating a new relationship. It can also be done faster if the need is more urgent.

We also advise early and frequent communications with employees once you know that a PEO change is needed. You might even consider getting some longtime, trusted employees involved in the process to make sure staff have a voice.