There are many core assessments that need to be reviewed when considering partnering with a Professional Employer Organization , commonly referred to as a PEO. There are also many different types of PEO’s who offer a wide range of services or benefits. Some PEO’s are experts in workers’ comp, compliance and safety, while others focus on HR, employee management, and group benefits. There are PEO’s for white collar, for blue collar, and everything in between.  Because the PEO industry is ever expanding it can be difficult to source and choose the best fit for your business model. That is where we come in. As industry experts, our job is to present you with pricing and services from the PEO’s that will make the best business partner for your business. Our goal is to save you time and money. The best part? There’s no fee for our services.

We believe that just about every small to medium business can benefit from a PEO partnership. MartinoWest is here to support you so give us a call  and we would be happy to do the groundwork for you. But if you choose to go at it alone, here are 13 steps to consider when choosing a PEO:

1. Assess Your HR Needs:

• Start by evaluating your current HR and workforce management needs. Consider areas such as payroll processing, employee benefits, compliance with employment laws, and other HR-related tasks.

2. Understand PEO Services:

• Familiarize yourself with the range of services PEOs offer. These services typically include payroll and tax administration, benefits administration, HR compliance, risk management, and more. 

3. Compare Costs:

• Compare the costs of using a PEO with the expenses you currently incur for managing HR in-house. While PEO services come with fees, they can often be more cost-effective due to economies of scale and expertise.

4. Consider Compliance and Legal Aspects:

• If your business struggles with HR compliance or faces challenges in keeping up with ever-changing labor laws and regulations, a PEO can help ensure that your business remains compliant.

5. Evaluate Employee Benefits:

• If providing competitive employee benefits is important to your business, a PEO can often provide access to a wider range of benefits and cost-effective options, including healthcare and retirement plans.

6. Assess Time Savings:

• Think about the time and resources your business can save by outsourcing HR tasks to a PEO. This can free up your team to focus on core business activities.

7. Industry Expertise:

• Some PEOs specialize in specific industries or niches. Consider whether the PEO has experience working with businesses similar to yours.

8. Ask for References and Reviews:

• Request references from other businesses that have used the PEO’s services, and research online reviews and testimonials. This can give you insights into their reputation and customer satisfaction.

9. Seek Customization:

• Ensure that the PEO can tailor its services to your specific needs. Your business may have unique requirements, and it’s important to work with a PEO that can accommodate them.

10. Consult with Experts:

• Consider consulting with HR professionals or legal experts to get their input on whether a PEO is the right choice for your business.

11. Calculate ROI:

• Evaluate the potential return on investment (ROI) of using a PEO. Consider how much money and time you can save, as well as the potential benefits of accessing better employee benefits.

12. Review Contracts and Terms:

• Carefully review the contract and terms offered by the PEO. Ensure you understand the pricing structure, termination clauses, and the scope of services provided.

13. Conduct Due Diligence:

• Ensure that the PEO is financially stable and has a solid track record. You’ll be entrusting critical HR functions to them, so reliability is essential.

Ultimately, the decision to use a PEO should align with your business goals and needs. If you find that a PEO can help you save time, reduce HR-related burdens, enhance compliance, and offer competitive benefits to your employees, it may be a valuable solution for your business.

MartinoWest specializes in PEOs and bundled products. Give us a call and we can work together to find the best solution for your company.