If you're unsure how to find a professional employer organization that matches your company's needs, a PEO broker may be the solution. Whether you're a small business with a tight budget or a medium-sized business with an expanding payroll, you have options. And the right PEO broker may be able to help you save time, money and frustration in your quest.
Here we'll explore what factors to consider when choosing a PEO broker and how to navigate the process with confidence.
A professional employer organization, or PEO, provides human resources outsourcing services to small and medium-sized businesses. When a company works with a PEO, the PEO provides a comprehensive human resources seolution to the company. PEOs can help with various HR services, including:
PEOs operate under a co-employment model in which the PEO, as a co-employer, is the employer of record for tax purposes and is responsible for collecting and remitting payroll taxes for employees on its platform. The client maintains control over workforce decisions, like hiring, firing, compensation and culture. According to the National Association of Professional Employer Organizations (NAPEO), PEOs co-employ more than four-million workers and work with 173,000 businesses across the country.
A PEO broker is a professional who helps businesses find and select the right PEO solution for their needs. The broker acts as an intermediary between businesses and PEOs. They assist with evaluation, comparison and negotiation processes to help that businesses find the best PEO to help with their HR functions.
On behalf of their clients, PEO brokers handle critical tasks that employers might not even realize are necessary. Even those who do understand what's necessary may not have the time and expertise required to effectively accomplish it themselves. Here's a look at how PEO brokers may help their clients.
A PEO broker initially meets with a prospective business client to assess its needs, challenges and objectives.
Based on the client's needs, the broker researches PEOs that can offer the services the client is looking for. This requires staying updated with the offerings and capabilities of various PEOs in the market.
Once the broker has shortlisted PEO candidates, they obtain quotes and craft proposals on the client's behalf. These outline such things like the PEO services, PEO estimated admin fees and costs, and the benefits each one offers.
The broker presents these options to the client, explaining the advantages and disadvantages of each. They provide guidance on which PEO might be the best fit based on the client's requirements and goals.
PEO brokers can negotiate on behalf of the client to get the best possible terms, prices and services.
Once a business decides to work with a PEO, the broker may assist in the transition process, ensuring that the implementation of services is smooth.
Many PEO brokers provide continuous support, serving as a point of contact between the client and the PEO. They may help address concerns, modify service terms, or even switch PEOs if need be.
PEO brokers stay informed about changing compliance and industry trends. They keep clients abreast of these changes and may advise on necessary adjustments. PEO brokers may also educate clients about best practices, new technologies and relevant changes in compliance.
A large part of a PEO broker's role involves building and maintaining relationships with both PEO providers and clients. This helps in the quick resolution of issues, better negotiations, and smooth operations.
Since they deal with sensitive company and employee data, maintaining confidentiality and adhering to data protection norms is crucial.
A proficient PEO broker can deliver numerous advantages to a business, including but not limited to the following common benefits.
Experienced PEO brokers are knowledgeable about the PEO industry and can quickly identify the best options for a specific business. Not all PEOs are going to be the right fit for your payroll or HR needs. So a broker can help you more knowledgably and confidently navigate these waters.
Business owners need not spend valuable time researching and contacting multiple PEOs, as brokers streamline this process.
PEO brokers might secure better rates due to their relationships with PEOs or by understanding the negotiation process better.
A good PEO broker should provide objective advice. Their top priority should be to match businesses with the most suitable PEO.
When looking for the right PEO broker for your business, you'll want to be selective. Not all brokers are going to be a good fit. Start by looking for those with a wealth of experience in the PEO industry. Make sure they come recommended with strong client references that speak to their ethics, confidentiality and post-sale client support. As your business grows, you'll want your broker's knowledge and connections to scale with you.
Transparency is also key. A trustworthy broker will be upfront about their fees and commissions and use modern tools to streamline processes. This transparency should also translate to communication and keeping you regularly updated on market trends and compliance changes.
It's also beneficial if they have a vast network of PEO contacts, demonstrate solid negotiation skills and have reputable affiliations within the industry. Conduct interviews with multiple brokers for a comparative perspective that can help ensure a good fit.
If you're interested in working with a PEO provider, PEO brokers can be helpful in facilitating the process. But let's say you already know exactly what you're looking for in a PEO. If your "must-have" list includes payroll administration, benefits administration, compliance, risk mitigation and HR-related tasks, TriNet is likely your best solution. As one of the leading PEOs in the business, TriNet provides comprehensive HR solutions and payroll services and expertise, helping to take the burden off organizations and HR teams so time and resources can be better spent elsewhere. Speak with a representative today to learn how your business can benefit from TriNet's specialized platform and expert services.
This communication is for informational purposes only, is not legal, tax or accounting advice, and is not an offer to sell, buy or procure insurance.
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