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Published on May 24
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Selecting a PEO partner doesn’t have to be overwhelming
Selecting a professional employer organization (PEO) partner can seem daunting. From understanding what a PEO can do for your business to deciding which company will provide your employee with the best benefits options, this handy guide will help you choose the right partner.
Determine if you need a PEO
Professional Employer Organizations partner with small and mid-size businesses to provide outsourced HR management, including employee benefits administration, risk management, compliance with regulatory issues, and training. PEOs work through a co-employment arrangement with a client company, meaning that the PEO shares the costs and risks of employment with the company.
Your mid-size business is growing, but the stresses of managing the human resources process is becoming more and more of a distraction. Working with a PEO is an investment in your business’ future, ensuring that you are able to provide your employees with the benefits they deserve while providing valuable you with time-saving and liability-reducing services.
Sheakley’s PEO solutions deliver top notch human resources services without the necessity of an HR manager on your team. The technology tools offered by Sheakley allow for easier management of your employees PTO, vacation, check stubs and W-2s. The training and on-going education opportunities Sheakley offers to your supervisory staff will ensure that the day-to-day management of your business remains compliant. The PEO team can help you avoid common HR mistakes that could prove costly to your business.
Make sure that your PEO is accredited and certified
Fewer than five percent of all PEOs have dedicated themselves to becoming accredited by Employer Services Assurance Corporation (ESAC). Providing independent verification and financial assurance of the reliability of your PEO, ESAC accreditation requires compliance with over 40 best practices and quarterly verifications of key functions, including federal and state employment taxes, workers’ compensation premiums, retirement plan contributions, and others. PEO service providers voluntarily undergo the rigors of the certification process and are bonded at their own expense.
With the mission of helping PEOs reach their full potential in supporting small and mid-size businesses, the ESAC logo on a PEOs website lets you know that you have a partner you can trust. Accredited by ESAC, Certification Institute, and backed by a $3 million Employment Practices Liability Insurance policy, Sheakley is dedicated to helping your business succeed.
Commitment to customer service
The National Association of Professional Employer Organization’s latest PEO Pulse Survey reports growth in the industry in 2017 and predicts continued growth throughout the next year. According to NAPEO President and CEO Pat Cleary, “It’s clear that more and more small and mid-sized businesses have realized that using a PEO is good for their business and their employees. PEOs deliver enormous value to businesses by providing HR services and solutions that they would otherwise be unable to afford.”
Providing services to approximately 180,000 businesses and 3.4 million employees, the PEO industry has enjoyed significant growth. Adding approximately 100,000 employees and 6,000 clients per year, the PEO industry currently serves a workforce of nearly the same size as the federal government.
In a growing industry, the importance of having a dedicated staff member devoted to providing the highest quality customer service to every client is greater than ever. At Sheakley, your representative is constantly on the lookout for maintaining the compliance of your company, even recommending money saving opportunities for your business.
Benefit plan options
One of the chief advantages of working with a PEO is the opportunity to offer your employees the best quality and affordable benefits plan options. Utilizing its large pool of clients, Sheakley is able to negotiate affordable rates on Fortune 500 worthy benefits packages for your employees and reduced rates on worker’s compensation insurance for your company. Whether an employee takes a spill on the job or at the park, they’ll be covered.
Talk to your potential PEO partner about their service areas. Some PEOs offer state-specific service and coverage that won’t work for you if you have employees in other states. Work with your PEO candidates about where you’re currently doing business, where your existing employees live, and cities or states that you might expand your business into later. If your growing business operates or will operate outside of a PEOs service area, then it may not be the right partnership for you.
Ask for references
As you meet with potential PEO partners, remember that you’re interviewing them for a potential partnership that could mean success for your business. You’re hiring a PEO, so interview them like you would a job applicant. Come prepared with a list of questions and always ask for references.
Your potential PEO partners should be able to provide you with client and professional references. If a PEO drags its feet or refuses your request for references, it could be a serious red flag. Just as you would with a job applicant, be sure to contact the authors of the reference letters and testimonials delivered by your PEO partner.
A clearly defined relationship.
A reputable PEO will work with you to develop a well-defined and written contract that clearly defines the co-employment relationship.
Your contract will lay out each parties’ responsibilities and liabilities, the length of the contract, provisions that permit you or the PEO to cancel the contract, and the terms of the PEOs employment practices liability insurance coverage, among other important details.
Choose a PEO partner that helps your company grow
Sheakley’s 120 years of combined PEO experience and expertise are unrivaled in the industry. As your company continues to grow and become subject to more stringent labor laws, Sheakley’s PEO services allow you to remain compliant and focused on the daily demands of your business. For an even more in-depth information about PEOs download our What is a PEO e-book today.
Learn more about Sheakley’s PEO team and contact us for your free consultation today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join in the discussion by commenting below.
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