By: Shraga Jacobowitz

There are over 900 PEOs currently in the US. PEOs partner with thousands of businesses and co-employ millions of employees. PEOs assist every industry and business size by streamlining their operations, lowering their costs and securing competitive benefit packages for their employees.

With such a vast variety of PEOs, it can be extremely difficult for business owners to identify the proper PEO that best suits their specific business needs. It can be extremely complex and cumbersome to differentiate and fully understand the differences and pricing methods.

PEO brokers are extremely helpful and resourceful, as they have tremendous experience and understand the differences between each PEO provider. In addition, they can assess your needs and match you up with a PEO provider that will meet your specifications, as they are familiar with all the latest products and services from each PEO. With a PEO broker you will receive better service from your PEO provider, as you will have an advocate on your behalf that has clout with the provider based on the aggregate amount of business the broker has with that PEO.

Every business that is currently in a PEO partnership, should do some due diligence into the partnership prior to making any decision on changing or maintaining your provider. Just keep in mind, that even though a PEO shows a proposal with significant savings it does not always come out to be that way.  Some PEOs can be offering fewer services, a skimmed-down package offering, or in some scenarios have some conditions that your current providers does not. Here are some thoughts that may be helpful in your decision process.

If you are pretty much happy, however you do experience some issues, try to identify those issues – whether it’s a quality of service, pricing, services offerings, benefit packages, technology etc. Then reach out to your current provider and express your issues to see what they can do to accommodate. Many times accommodations can be made, especially when the PEO provider feels your business to them is on the line. Although you may be very unhappy with your current provider, ultimately, you may find that re-negotiating a better deal or working with your current PEO provider and solving your issues will result in a far better outcome, far faster and simpler than transitioning to another PEO provider that may have the very same issues.

If you have come to the realization that your current PEO provider is not suitable and cannot meet your expectations, then obviously it would be best to move to a new provider that may be more suitable.

Here are a few pointers that are important to review regarding your current PEO:

1) Does your current PEO make many mistakes? The entire point of partnering with a PEO is to reduce risk and exposure, and ensure compliance. If your PEO is consistently making payroll discrepancies and not producing paperwork on time, then it’s time to entertain making a change.

2) Are you taking advantage of all the HR services your PEO offers? Many times companies will purchase a suite of PEO services they don’t even use or know exist. Educating yourself on the service offerings, may assist you in utilizing them.

3) Is you’re current PEO helping your business streamline its operations, and operate more efficiently? If dealing with your PEO causes more headaches than working without one, chances are it’s time for a switch.

4) Does your current PEO respond to your needs in a timely fashion?  In a healthy and conducive PEO-client relationship, communications should be quick, responsive and proactive. Your common goals should be smoothing out any potential issues.

5) How is the PEOs technology? Can you generate the reports needed? Is the onboarding and off boarding process efficient? PEOs that invest and constantly update the latest techniques and software will save you time and money.

6) Now here is an important one – Are your invoices and billing transparent and understandable? If you don’t understand how your PEO fees are broken down, then you may be overpaying. It is important to fully understand your PEOs billing methods.

7) Are your service fees, taxes, workers compensation and health benefits pricing competitive. We recommend an annual or bi-annual PEO Evaluation in order to review these questions and determine whether you need to restructure your PEO partnership.


ARC Consultants is a PEO consulting firm, we broker out PEO services for all the leading PEO companies. We have exceptional knowledge in the industry, and all the latest products. With our expertise and knowledge, we are able to better understand our client’s needs and concerns and assist them in navigating through the complexities of making the correct decision in partnering with a PEO. We assist our clients in finding them the PEO that best suits their specific needs, as well as, negotiate on their behalf and service them throughout our relationship. We maintain exceptional relationships with our PEO providers and thereby we have the ability to service our client’s needs and advocate on their behalf.

Reach out to ARC Consultants now, so we can start assisting you in finding the solution that’s just right for you……

Published On: August 11th, 2016 / Categories: PEO / Tags: , , , , , /