Defining a PEO Broker: Who They Are & Why You Need One
How Hiring a PEO Broker can benefit everyone
What is a PEO?
A PEO – Professional Employer Organization – provides comprehensive human resources services for small and medium-sized businesses. Their extensive services include payroll processing, employee benefits packages, tax administration help, compliance guidance, and risk management services. Essentially, they are your HR Department, standing in for you so you can utilize your in-house staff to do what they need to do without worrying about the administrative responsibilities of HR. – PEO’s are a great way for ambitious companies to streamline their HR in a responsible, outsourced manner while focusing on the bottom line.
What is a PEO Broker and what do they do?
A PEO Broker is an invaluable resource when it comes to choosing a Professional Employer Organization. The broker acts as a middleman in the relationship between an employer and their PEO. The PEO Broker streamlines the entire process of researching, reviewing, negotiating, selecting, and implementing a PEO. They utilize their experience and expertise to help companies choose a PEO that is the right fit for their specific business, considering their specific needs, location, budgets, and preferences. There is no fee to the employer in using a PEO Broker, as the service is paid by the PEO. If you are searching for a PEO, there is really no downside to using a broker, yet the upside includes tapping into the knowledge of a seasoned professional, being able to compare PEOs against each other instead of being held captive, and saving lots of time and money by not going through the process yourself.
If you aren’t using a PEO now, a broker can help you determine if it’s the right time to start by examining costs and benefits for your organization. If you’re already using a PEO, a broker can help you analyze their services and decide whether it’s time to switch to a different PEO who can serve you better.
The PEO RFP (request for proposals) process can flow more quickly and easily with the assistance of a PEO Broker. You can onboard a new PEO more efficiently and effectively when a broker is on your team. And remember, they are on YOUR team.
Important steps a PEO Broker manages for you:
- Asks questions. A PEO Broker asks the employer questions about their company, staff, objectives, and current and past HR support.
- Completes research. Identifies best potential Professional Employer Organizations, reads reviews, investigates features and customer service, and enters information into a competitive analysis.
- Asks more questions. A PEO Broker interviews PEOs on your behalf, ensuring they meet the requirements outlined by the employer and broker.
- Checks references. A PEO Broker requests and follows up with references of any PEOs under consideration. The broker is looking for a level of customer satisfaction and alignment with promised features.
- Negotiation and Recommendation. A PEO Broker negotiates with the PEO on your behalf for the best rates. They present their recommendation when complete.
- A good PEO Broker helps facilitate the implementation of a new PEO for the employer, making sure all tasks are completed and everyone understands their responsibilities going forward.
- Periodic check-in and relationship facilitation. A good PEO Broker will check in to ensure things are running smoothly, answer any questions you may have, get involved directly with the PEO if necessary, and help with renewals or going through another comparative analysis process.
In summary, if an employer is ready for help managing their HR solutions, or even if they are unsure whether they are at that point yet, it is worth their time to meet with a PEO Broker to have an exploratory conversation.
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