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6 Reasons Why you Need a PEO Consultant or PEO Broker NOW!

 

By Shraga Jacobowitz

There are many reasons why you should use a PEO (not sure what they are? You can check out any one of the many blogs I’ve written about it such as this one). Every business owner, including hopefully you, has their own unique reason for partnering with a PEO. Perhaps you are just fed up with your administrative tasks eating up huge amounts of your time, overpaying for your company’s health coverage, or losing out on hiring top talent to companies that can offer better benefit packages.  Regardless of the reason is (although I do hope my newsletters had at least a little bit of bearing on the decision), you are now ready to make that leap and join the thousands of companies who partner with PEOs.

You ready? Let’s go, pull out the yellow pages–who am I kidding– turn to the all trusty Google and type in PEO providers. In 0.49 seconds 1.56 Million results come up (trust me, I tried it). Now what?

How do you know which PEO provider is the right fit for your business? Will get you the best service? Best prices? Understand you? With over 700 PEO companies servicing businesses throughout the country, finding the one that meets your business’s needs can be a huge headache.

Enter the PEO Consultant (AKA PEO Broker). And while the word consultant conjures to mind the famous adage “Those who can’t do, teach. Those who can’t teach, consult,” this is one case where a consultant can really DO a lot.  A PEO consultant/ broker will do all the research and negotiating for you so that you sign a contract with the PEO that is perfect for your industry and your particular organization. I mean, after all, your time is so precious; why bother researching and reviewing dozens of companies or even worse having to sit through countless sales pitches and lengthy (read: boring) presentations (although the swag and refreshments are always a nice perk, you have better things to do with your time) when you can have someone do it for you?

But hiring a PEO Consultant / PEO Broker is so much more than just the research. Here’s the top 6 reasons why you should use a PEO Consultant/ PEO Broker when partnering with a PEO:

  1. Comparison shopping made easy 

We all love the option of comparison shopping online, just click a couple buttons and have all the data to make an informed decision right in front of you. Unfortunately, it’s not that easy when it comes to PEOs. Pricing is going to be a huge factor in your decision about which PEO provider to use. But getting quotes from several companies can take loads of time, energy and endless paperwork on your part.  PEO proposals tend to be lengthy and as discussed in my last newsletter can be complicated, i.e., containing many easy-to-miss small details and varying pricing structures making comparison-shopping extremely difficult. A PEO Consultant/ PEO Broker can provide you multiple quotes to review at once, making your decision that much easier, and they can advise you to which PEO is the best fit for your needs and the best value for your company.

  1. Saving you time

When choosing a PEO, you’ll have to choose between a National, Regional or Niche PEO. You’ll need to do research into each kind of PEO, and once you’ve made that choice, you’ll need to do further research into PEO providers within each category. That’s a lot of research for one decision!

Think of the Consultant / Broker as that one guy who just knows everyone at the party….because honestly a good Consultant/ Broker will have already established dozens of relationships with PEO providers within each class. This way, they can guide you with this part of the process so you can make your final decision sooner.  In addition, as mentioned above, knowing which type of PEO is the best fit for your business, eliminates the need to even sit down, never mind listen to sales presentation from PEOs that don’t fit your company’s needs (you’ll just have to do without the keychain, hand sanitizer or Danish).  That’s why working with a PEO Consultant / PEO Broker will save you time and energy (and frustration), ensuring that you only sit down with those PEOs that services, technology and financial structure suit your business’ specific needs. 

  1. Better pricing 

Like every decision you make about your company, it’s all about the money, money, money! And to paraphrase the saying, “If you think hiring an expert is expensive, try doing it yourself.” Not hiring a consultant/broker can sometimes end up costing you more than any savings you might have thought you were gaining by doing it yourself. If you want to get the most value for your money with a PEO provider, hire a PEO Consultant / PEO Broker. An experience consultant / broker can negotiate on your behalf to get you the best service for the best price. And a good consultant / broker will use their exclusive relationships with PEO providers to draw up a deal that is favorable to everyone involved.

Hiring a PEO is a huge decision that will affect your bottom line for years to come. Why not get the most for your money? 

  1. Simplified paperwork 

Ever try to apply for something and simply give up just because of the sheer amount of paperwork?  We know that feeling! In order to provide you with an accurate quote, a PEO will need to gather a large amount of data from you, including your employees’ salaries, insurance policies, health care requirements, workers’ compensation history, and a whole lot more. Since each PEO uses a unique proposal system, you’ll need to fill out all that paperwork each time you research another PEO. That’s paperwork times infinity, or at least it will feel like that.

When using an experienced Consultant / Broker though, you only need to submit this information once. The Consultant/ Broker will evaluate your company’s data and give you quotes based on your specific needs so that you can make an informed decision with minimal paperwork involved.

You’ve got enough on your head already; why not save yourself some paperwork—and lots of time?

  1. They have your best interests in mind 

If you were in the market for a new computer and are not sure which one to get, do you go to a Dell store or an electronic store like Best Buy?  Unless you know you want a Dell, I’d suggest going to Best Buy, because the Dell representative is only going to sell you a Dell which may not be the best computer for you.

Similarly, when you work with a PEO directly, the company will try to convince you that they’re the best fit for your business. In contrast, when you work with a Consultant / Broker, they only have your own interests in mind and will help you make a decision that is best for you. They don’t make more money when you choose a particular PEO over another; they only want to make you happy.

It’s always best to work with someone who has your best interests in mind.

  1. They’re in the know 

When most people think about partnering with a PEO, it is to get competitive insurance rates or better employee benefit packages, but the pros of a PEO far exceed just saving your time and money. Many PEOs offer employee training, safety compliance assistance, creating company culture and employee engagement, workers comp insurance, assistance with onboarding, hiring and firing techniques, government compliance and regulation guidance and so much more. For more benefits of the PEO, check out some of my past blogs. But it’s hard to take advantage of all these amazing benefits if you don’t even know about them. A PEO Consultant/ PEO Broker can give you the complete rundown of all the myriad of ways a PEO can help your business.  And really, why would you want to miss out on something, simply because you didn’t know to ask for it?

Want to see exactly how a PEO Consultant / PEO Broker can help your business get the most out of your PEO? Call ARC Consultants today and let them not only consult you, but DO all the work for you.

Should a PEO be your business’ New Year’s resolution? 7 Signs that will tell you if a PEO should be on the list

 

By: Shraga Jacobowitz

With New Year’s just past (Do we all remember Y2K pandemonium? Can you believe it was 18 years ago?), it’s time to reflect on those resolutions. For many that means personal resolutions. But believe it or not, New Year’s is also a good time for business resolutions, especially if your business is showing any of the following seven signs. And with the help of ARC, this is a resolution you can actually keep.

So what are the 7 signs you might need a PEO?

Read on and see if any sound familiar.

#1: Your administrative duties overwhelm you 

If you’re desperately searching for more hours in the day to get through your entire workload, a PEO is the ideal solution for you. A thriving, growing business translates into growing administrative duties that you may not be able to keep up with.

A competent PEO will streamline all of your administrative processes, such as overseeing payroll, new hire and termination processes, HR compliance and medical coverage for your employees. They assume the bulk of hiring and recruiting new workers, supervise employee data management and more.

This might especially apply to you if: You have multiple locations, recently underwent an expansion, or experienced a large growth surge.

#2: You’re not 100% certain you are compliant with regulations and laws related to your industry

Running a lawful business has never been more complicated. New rules and regulations are constantly being passed, and just keeping yourself and your business updated with these laws can consume most of your time and energy.

Free up your brain space and drive for the things that really matter – like launching a new line of products or expanding your clientele beyond its current base – by outsourcing this tedious task to a PEO. They’ll do the hard work for you and ensure that your business is always fully compliant with all relevant laws.

This might especially apply to you if: Your industry is high-risk and is governed by many complicated rules and regulations.

#3: You want access to a Fortune 500 benefit employee benefit package 

Small businesses sometimes have to resort to hiring less-than-ideal candidates because they don’t have access to the handsome benefits package offered by larger firms. In an employee’s market, job-hunters can afford to be choosy and might not even give your business a chance if you can’t offer an attractive package.

By using the services of a PEO, you’ll have access to a much wider pool of benefits you’d otherwise never be able to reach. This way, you can give your employees what they really deserve.

While this is true with all employee benefits, it’s especially true with regards to medical coverage. A smaller business is often stuck with less-than-ideal coverage at ridiculously high premiums.

This might especially apply to you if: You are a smaller company but have exorbitantly high premiums and/or deductibles. 

#4: You’ve outgrown your current administrative system but don’t yet have the financial resources to build an internal HR department

Your business used to run perfectly well with its current administrative practice, but now it’s outgrown itself. You might be entertaining the thought of building an internal HR department and are wondering what this might run you in costs.

While the exact price tag varies with need, establishing an HR department is always time-consuming and relatively expensive. It can mean recruiting and hiring an HR director, using the services of a payroll company, and paying host of cost and fees that can be incurred by doing your HR in-house – all of which can total up to $200,000!

Do you stick with the system you have in place even though it’s not working too well or drop a ton of money on establishing an HR department?

You might think you’re stuck between a rock and a hard place, but there’s a simple solution: Hire a PEO! You’ll outsource all of your HR and you’ll have a greater depth and breadth of services at a reasonable price.

This might especially apply to you if: You’ve already experienced the fallout of administrative practices that aren’t sufficient for your current level of growth.

#5: You recently acquired a company

Acquiring another company is an exciting step for growing businesses and opens a plethora of new opportunities. Unfortunately, though, this process often leads to the realization that the current HR process was undermanaged or insufficient for the business’s needs. This can present a significant risk to acquirers, particularly in a stock purchase. You don’t want to end up losing out on the acquisition because of faulty administrative practices. By using a PEO, your HR will be handled efficiently and competently, removing all the employer risk inherent in an acquisition.

This might especially apply to you if: Your administrative process was already floundering prior to the acquisition. 

#6: You’ve just lost a long-time employee who handled all aspects of HR

Every business owner likes to think their best employees will stick around forever, but this is hardly true. Employees leave their places of work all the time – even ones they’ve worked in for decades. If you have an employee you depend on to manage HR, you might be lost if this worker leaves your company. It’s best to have a PEO working together with your employee so that you’re not up a creek if this key worker leaves.

If the inevitable happens and you did not employ the services of a PEO before it did, it’s not too late to start now. A PEO can swoop in and save the day when you feel like you’re completely lost without your key employee managing HR.

This might especially apply to you if: You’ve never played any part in the HR department at your business.

#7: Your industry has higher Workers Comp exposure causing higher workers comp rates and premium

Every business does it best to keep its employees safe, but understandably some work environments provide higher risk to their employees than others. When you are in an industry that has higher risks to your employees, the cost of your workers comp insurance can be quite high.

Because PEO’s are shopping for this insurance in higher quantities they can provide better rates on workers comp insurance plans. And since the company partnering with the PEO can often take on the EMR (Experience Modification Rate) of the PEO, even those companies with high EMRs can benefit from the PEOs lower rate.  In addition, PEOs can provide safety compliance guidance, improving your environment’s risk factors and your personal EMR to qualify your business for lower rates even if taking on the PEOs EMR is not an option.  So essentially a PEO can both make your business a safer place to work and save you money on workers comp insurance. Now what’s not to love about that?

This might especially apply to you if: You are in the construction or manufacturing industries which have high risk environments.

Okay, you have to admit it, at least 2 or 3 of those signs apply to you. If that’s the case, you definitely can benefit from a PEO.

Still not convinced? Contact ARC Consultants today so that they can determine if a PEO is right for you and if so, which PEO is the right partner for your exact business! Now, that’s something to cheer about! Happy New Year to all!  Wishing you a stress-less and successful new year.