You may be surprised to learn that changing your PEO mid-contract is not only possible, it can also be relatively easy as long as you have some help.
Whether you’ve outgrown your current provider’s services, want more flexibility or find the annual bill increases unsustainable, immediate solutions exist. Here’s what you need to know.
Every business has unique needs. Therefore, before making a switch, evaluate the non-negotiables in a PEO relationship. These might include essential services like payroll and training, insurance coverage standards and scalability.
When switching providers, the most important step is to review the termination provisions of your current contract. Most agreements, even if you signed for a year, offer a 30-day written notice to opt out. Also, be mindful of the cancellation clause within the contract, which outlines termination or transition fees.
When changing PEO providers, it is crucial to understand both your current and future HR needs. What you do not want when switching is a coverage gap, so there is work that goes into the front end to ensure an improvement in PEO services.
A PEO broker can help you with the transition, guiding you through the process, helping you identify the HR challenges you need covered, costs, benefits and any inconsistencies in the plethora of providers you consider. The true benefit of a PEO broker is they can quickly work with you to identify your needs, then present you with the best options that meet those requirements at no cost to you. Their service fee, which includes all the legwork you would normally have to do yourself, is paid by the PEO, not you. This is truly a win-win situation.
Locating a new PEO is not as simple as flipping a switch. You need to make the right choice and there will be a transition period, including time to communicate with your employees. However, when working with a PEO broker, if you quickly provide them with all the requested content, they can pare down the 500-plus PEO options to identify the top choices that will work for you. This process can be completed in as little as 60 days. That said, a timeline of 90 to 120 days is more realistic for making the switch.
Don’t feel like you are stuck with your current PEO. If you want to explore other options, start the process now before your contract is up so you can make an educated decision without added pressure.