When you’re comparing PEOs, you’re at an exciting stage in your business — you’re ready for growth.
There comes a time when you need to onboard new employees and devote cash flow toward expansion initiatives. But you know if you continue to handle the financial and human resources details yourself, growth will only stall. This is where a professional employment organization (PEO) can step in and help you get over the hurdle.
A PEO, for tax purposes, is a co-employer of your staff. They handle all the HR functions that you aren’t ready to assign to a full-time, in-house employee. Because they offer their services to a number of companies, your small business is able to offer a more competitive benefits package due to lower rates — a talent attractor you may not have been able to afford otherwise. This just scratches the surface of the vast range of benefits provided by a PEO.
The concept of a PEO is relatively new, but there are still hundreds in business in the U.S. When you’re comparing PEOs and what they can provide, be sure to ask the questions below.
1. How Long Have You Been in Business?
Find out if the PEO you’re looking into has a long-standing reputation of excellence. Ask for references. Do your homework. Longevity is key, because it shows a company’s viability and commitment to their clients.
2. Do You Offer All the Services I Need or Will Need Soon?
Maybe right now you’re only interested in payroll and tax administration. That’s fine, but if you want to outsource more services to your PEO, what will you need them to take care of? Recruitment and hiring? Regulatory compliance?
Comparing PEOs can help you eliminate the candidates that don’t offer the full spectrum of services you will eventually need.
3. What Benefits Plans Can You Offer My Employees?
Get into the details when you’re interviewing a PEO. What specific benefits does their plan offer your employees? Is it enough to be worth the cost to you? Is it what your team is looking for from their company? Benefits plans are only competitive if they meet the needs of your staff.
4. Who Will Be My Primary Point of Contact?
Who should you call if you have a question on taxes? What if there’s a workplace injury? Make sure you get the logistics ironed out before you choose one company over another. Your point of contact should be someone who’s knowledgeable about your industry and your specific company.
5. What Will Our Contract Look Like?
What is the average monthly bill? How does the PEO charge? Do you have a contract with them? If so, what are the cancellation terms?
Make sure you get to the bottom of all these questions to ensure you have a clear idea of what to expect before you sign on.
6. How Much Will I Save?
Finally, get clear on costs. Will it be worth it for your business to make the transition? Between money and time savings, make sure the PEO you choose makes it worth it for your company to switch.
At WTA, Inc., your business’ success is our success. We are a co-employer you can be proud to depend on as you focus on what’s important: growing your business. Comparing PEOs is a process, and we are happy to provide you with any information about our team or the industry in general. Just give us a call!