The benefits of using a PEO (professional employer organization) for small business are undeniable. However, not all PEO services are equal, so you need to reevaluate your partnership regularly.
Does the company provide the exact type of help you need? Has your business outgrown its capabilities? Are there better offers available? Answering all these and some other important questions will help find the best PEO for you and ensure your business gets maximum of the benefits these services can offer.
Do You Need to Change Your PEO? 4 Signs to Watch Out For
1. The cost is getting too much
The majority of PEOs charge a fee per employee, but there are usually many factors affecting the total amount you have to pay. If the cost of this services becomes too much of a burden for your business, you must change your PEO. It doesn’t matter whether the cause of the issue is the rise of the PEO fees or business problems on your part, which result in budget cuts.
However, it’s essential to understand that money shouldn’t be the deciding factor when choosing a PEO. It’s the careful balance of services offered vs. cost that determines PEO compatibility with the business. Finding this balance is one of the main benefits of using the help of a professional PEO broker. Such service providers can evaluate PEOs on multiple levels while taking into account your business’ exact needs. Therefore, they can shortlist the companies offering the best value for money.
2. The benefits aren’t enough
A clear sign that you’ve outgrown your PEO is the growth of your business. If you are starting to hire more people and generally move to a new level, you will need a better PEO. Even if the company you work with now seems adequate, you should look into other options to see if you can find something better.
Using a PEO service that offers a wider range of benefits, for example, will help your business grow further. Overall, a better PEO means better options for your employees, which means your ability to hire top professionals.
Note that in this case, the fact that you’ve outgrown your PEO won’t be obvious as it will still perform an adequate service. Therefore, it’s essential to add these reevaluations and PEO market research to your routine business’ assessments calendar. You need to take a proactive part in looking for better PEO options or hire a broker to run these checks on your behalf.
3. You need extra advantage on the market
Hiring top talent is one of the most effective ways to help small businesses succeed as 23% of them fail because they don’t have the right team (Fortune). Employing a high-profile expert can not only boost your business due to the skill they bring but also due to the positive PR you can generate.
If this is the kind of push your small business needs, you’ll have to find a PEO that can help you recruit the exact professionals you want.
4. You struggle with recruiting
The level of your involvement in the hiring process varies from PEO to PEO. If you are currently using a service that has you doing most of the actual recruiting, you might consider switching to a company that will be responsible for finding the absolute best employees for your business.
This issue becomes pertinent during periods of active growth when you need to fill many positions fast. Switching to a PEO with experience and capability to do exactly that will prevent any business problems that might occur due to being short-staffed.
A good EPO also increases employee retention. Therefore, this change will also help you avoid having to find new employees soon and thus missing some good business opportunities.