Full-Service HR

Find the Right PEO for Your Company

Chelsea Bikner
Find the Right PEO for Your Company
Reading time 5 Mins
Published on Feb 4
Share

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 Professional Employer Organization (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. Working through a co-employment arrangement, your PEO partner provides outsourced HR management, including employee benefits administration, risk management, compliance with regulatory issues, and training – sharing the costs and risks of employment with your company. All this means that you need to find a PEO partner you can trust and rely on. Here are a few areas that you should focus on during your search for the right PEO partner for you.

Focus on compliance

PEOs are all about compliance. Your PEO partner should have the knowledge to help you navigate frequent compliance changes and stay on top of regulatory issues. Non-compliance with federal, state, and local mandates can be expensive and time-consuming. Your PEO should understand all of the regulations that govern your industry and work to make sure that your company stays in compliance, including helping you develop systems and processes to make compliance easier.

Accreditation carries serious weight

Your PEO partner has access to sensitive information about your employees and your business, so making sure that they are well-run and regulated is critical. Yet less 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.

Benefits boost

One of the chief advantages of working with a PEO is the opportunity to offer your employees high quality, affordable benefit plan options. Early on in your discussions with potential partners, you should learn what benefit programs the PEO offers, how these compare to your current offerings, and what the costs would be for your company and your employees. Give particular weight to health insurance options like health, dental, and vision insurance, but don’t forget about retirement accounts like 401(k) plans and IRAs.

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.

Personal and professional references

You’re hiring a PEO as your partner, so treat your early conversations with them like you would a job interview at your company. Come prepared with a list of questions and ask for references. Your potential PEO partner should be able to provide you with client and professional references that demonstrate their expertise in serving companies of all sizes and industries. Pay attention to companies that are similar in size and industry to yours. Look beyond the company for references too. Independent reviews of the company online may paint a less rosy picture, but may also offer you a more well-rounded view of the PEO. If they drag 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.

Every relationship has rules

Finally, a reputable PEO will work with you to develop a contract that clearly defines the co-employment relationship – laying out responsibilities and liabilities. Among other important details, the contract should also have the set length of the relationship, provisions that permit you or the PEO to cancel the contract, and terms of the PEOs employment practices liability insurance coverage.

Choose a PEO partner that helps your company grow

Sheakley’s 120 years of combined PEO experience and expertise are unrivaled in the industry. Our 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. 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, helping you avoid common HR mistakes that could prove costly to your business. For 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.


You may want to read

See all articles
X
X
X
X