6 Steps to Choosing a PEO That Fits Your Business

Choosing a PEO to take over essential business functions like payroll, hiring and employee benefits isn’t a small task — you’re trusting an outside team with important responsibilities. They must be up to the challenge.

When you’re choosing a PEO, stick to the tried-and-true guidelines below to find the human resources partner you can rely on for years to come.

choosing a PEO

1. Assess Your Company’s Needs

Where are you falling short when it comes to your human resource services?

Take stock of what’s taking up most of your and your in-house staff’s time. Choosing a PEO doesn’t always mean relinquishing all your HR tasks. Honestly assess whether you only need payroll management or whether your company would benefit from a more comprehensive package.

2. Review The PEO’s Reputation

Ask for client references, professional organization memberships and their training and experience. You should be able to personally talk to whomever will be managing your account. After all, when you’re choosing a PEO, it’s like hiring a new employee. You need a resume before deciding.

3. Ask About Service Plan Options

Does the PEO provide individual service offerings? Are they willing to tailor their management products to fit your company’s needs? Even if you only need one service right now, do they offer a range of services that will allow your business to expand and grow with the same PEO?

4. Know the Price You Will Pay

Make sure you understand the PEO’s pricing structure. Will you be billed one flat fee per employee, or will they charge you a total payroll percentage? This will influence the total cost, which you should know up front before you sign a contract.

5. Understand What Responsibilities You Still Have

Even though a PEO will essentially become a co-employer in many cases and take over much of the liability when it comes to your employees, it’s vital to know exactly what you are still responsible for. What is guaranteed? Who is accountable for each service rendered? How can you cancel the contract if you’re not satisfied?

6. Make Sure the PEO Is State-Licensed

Check that your outsourced HR provider is fully licensed by the state. It’s important that they meet all state requirements to legally operate and provide certain employer services. Otherwise, the PEO contract may not be valid.

When you’re looking to outsource HR services in Utah or Nevada, WTA, Inc., is here for your business. Choosing a PEO is challenging if you aren’t sure what you need or why you need it. By calling and discussing your business operations with our staff, you will learn about cost-effective solutions that make sense and help you see why outsourced HR could change your business for the better.