How Do I Know Which PEO Is Right For Me?

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So, you’ve decided that the co-employment business model and HR outsourcing is right for you… but according to NAPEO (National Association of Professional Employer Organizations), there are about 700 PEOs operating in 50 states….where does one start with that big of a selection?

Employer Solutions Plus offers the following guidelines to companies considering the co-employment relationship:

1. Compile an assessment of workplace needs and wants surrounding employee management and risk management.
2. Determine your employee benefits needs.

3. Align the PEO’s capabilities, services, and benefits with your exact needs. Are they capable of meeting your goals?

4. Verifications:

  • Verify the length of time that
    the PEO Vendor has been in business.
  • Are risk management practices independently certified by the Certification Institute?
  • Are operational, financial and ethical practices accredited by Employer Service Assurance Corporation (ESAC)?
  • Is the PEO a member of NAPEO?
  • Does the PEO meet all state requirements?

5. Ask the PEO for client and professional references.

6. Check the PEO’s financial background, including bank and credit references. Ask the PEO to prove that it pays its own payroll taxes and insurance premiums in a timely manner.

7. Is the PEO fully insured or partially self-funded (concerning benefits)? If third party, is their insurance carrier authorized to do business in your state?

8. Reinforce credibility through personal contact; request a personal presentation by the PEO.

9. Review the service agreement very carefully. Who is responsible for each type of liability? Key words to look for are “responsible for.” This means that the PEO assumes all cost and liability associated with the action. Words such as “assist with” or “consult with” means that the business owner assumes liability.

10 Will you be able to cancel the contract if better rates come along or terms of the contract are not met? We understand the 10 steps above are a lot to take in, and it’s especially difficult to find the time for this process when you’ve got your own day-to-day activities and clients to worry about. At Employer Solutions Plus, we manage PEO shopping for you, and present you with the best possible options after analyzing numerous PEOs on the aforementioned criteria.

Clients of Employer Solutions Plus save themselves time, money, and stress. Call today to take the guesswork out of the PEO selection process: 727-698-6207.