If you have decided that a Professional Employer Organization (PEO) is a smart choice for your business, the next step is to determine what specific goals you want to achieve.
With so many companies to choose from that specialize in specific industries, markets and states- which PEO company is the best choice for you?
Basic Differences in PEO Companies
For example, a contractor that needs to keep workers' compensation insurance costs to minimum has a totally different objective than a physician's office in the need of a strong employee benefits package. This is where the search can be difficult.
Some PEO companies don't even offer employee group healthcare benefits. Their niche may be strictly in the construction and trades industry with an offering of competitive workers' compensation rates and payroll.
You'll also find what I would call "hybrid" PEO companies that target blue and gray collared employers with limited benefit packages so they can say they offer all the bells and whistles, too.
The final category would be PEOs that really target the white and gray collared industries with strong benefit and human resource services. These PEO companies will also provide more "extras" like pay cards, special reports and employee assistance programs.
Truly Comparing PEOs
Within those basic tiers of PEOs, there are still many factors that separate each. Many in each category, for example, have workers' compensation policies that only cover the employees in the state they operate from. Some may cover the state of their home office and a few surrounding states, with others offering nationwide coverage.
Health insurance and benefits need to be carefully selected, as well. Great Blue Cross and Blue Shield rates aren't worth much if you happen to be in an area where the doctor and hospital coverage is limited. A cut-rate plan that requires your employees to drive an hour to see the doctor ends up being more of a nuisance than a benefit.
As you can imagine, the overall costs and fees will vary per group. The goal is to really drill down to your business needs and work from there. If you need help or just have questions, call us. Our information is free and helpful.
ELQ Can Help
ELQ was created in 2001 to help businesses choose a Professional Employer Organization that fits their unique needs. Please call if you're interested in seeing what advantages a PEO could do for your business.
We can be reached by calling 1-888-582-8388 between the hours of 8:30-5:30 EST.
