7 Tips for Working With a PEO Service Provider
As a business owner, there are many responsibilities that you have with your employees, clients and to yourself. It can be challenging to navigate the business seas on your own, and this is likely why you chose to look for PEO companies for help. Many business owners small and large find it helpful to work with an outside source for their HR needs.
What is a PEO? A PEO is a personal employer organization that helps businesses with human resource needs from hiring to payroll to take the burdensome or all work from in-house HR. If you do not want to do any of your HR in-house, that is an option or if you want to self-service, but have access to the answers you need, that is also an option. Let’s go on to look into seven tips for working with a PEO service provider.
#1 – Define Your Needs First
Before you to speak with anyone at a PEO, you need to know what your pain points are. Where do you need the most help? What are areas that you have to have help in right away and what are areas that are simply on your wishlist? Knowing what your needs are before you look through PEOs will allow you to stay on track and quickly eliminate any companies that are not able to give you what you need.
Considering writing everything down or even putting it into a PowerPoint in case someone on your team wants to collaborate with you and needs to understand your vision fully.
#2 – Interview Multiple PEOs
Never go with the first option that crosses your desk because you have a need. A relationship with a PEO is a serious business relationship that results in co-employment, and you need to ensure that you are going to be a good fit. Don’t be afraid to ask the hard questions to find out about how they operate and what their fee structure is.
Most PEOs charge a percentage of your employee’s payroll which is good if you have a lot of hourly employees. If you have a lot of salaried employees or employees that get commissions, you might want to ask them about flat rate possibilities.
Ask the PEO what the average length of relationship they have with clients is. You want to make sure they enjoy long-term relationships, so you aren’t stuck going through this process again anytime soon.
#3 – Make Sure the PEO Has Accreditation & Certification
While accreditation and certification are optional for PEOs, this is a quick way to narrow down which one is going to be the best fit for you when you are searching through the available companies that want to win your business.
You can find out more about these options from the NAPEO (National Association of Personal Employer Organizations) website. There are many other helpful resources on their website as well when you want to learn more about working with a PEO company.
#4 – Set Clear Expectations
Before working with a PEO, you want to make sure there are clear expectations on both sides. You need to know who is expected to take care of the different responsibilities, so no overlap, misunderstandings or anything falling through the cracks.
Setting clear expectations will allow everyone to understand how to move forward with ease. Unclear expectations set everyone up for disappointment and finger-pointing sessions.
#5 – Check Customer Support
If you have to wait hours on end to get in touch with customer support so you can get your challenge solved, you need to move on. Finding a PEO that is responsive and able to help you quickly is vital.
Make sure to ask how support issues are dealt with. Will you be able to speak directly to your contact? Is there a ticketing system put in place? What is the method of operations?
#6 – Ask About Compliance Expertise
Compliance is one of the biggest areas companies need help in whether it is with payroll, taxes or employee classification. If your PEO does not have the necessary expertise in compliance, you could find yourself deep in legal matters and fines.
You cannot verify their ability to help you with compliance enough. Before you sign on the dotted line, have them help you with one of your issues to see how well they know what they are doing. This is going to be a long-term relationship, and you want it to work.
#7 – Review All Contracts Thoroughly
Don’t casually glance over the contracts with the PEO company. You need to know what you are signing, and you should go over these contracts with an attorney to ensure that everything is in order. If you do not have an attorney on retainer for your business, pay the money to get the contract looked over for your peace of mind.
Conclusion
Anytime you are entering into a business relationship; there are going to be growing pains. The more in-depth and attentive you are before you enter into the relationship, the better. You want to make sure that you are doing the right thing for your business.
As you are working with the PEO, you may find you have many changes to make. If you feel overwhelmed by these changes, speak with the PEO and ask them which ones you should deal with first and work through them backward with the order of importance.
