While most businesses contact us because we’re a nationwide PEO brokerage, sometimes we’re asked – “Why should I use your services instead of calling PEOs directly?”
Here are a few reasons why our services have been valued by businesses for over 20 years, and a few recent examples of how we prevent employers from choosing the wrong PEO company.
For starters, “working directly with a PEO” means working with someone in their salesforce. Someone who most likely has company benefits an expense account, and of course is paid to sell you their services. As a PEO brokerage, the PEO company doesn’t incur those costs when working with us and can offer lower pricing to your business.
More importantly, with over 900 PEO companies across the country specializing in different industries, employee size groups, and unique service offerings – it could take days or even weeks to find a potential provider for your business.
Here are three recent stories of companies we’ve helped, who originally chose the wrong PEO company:
State Licensing Problem for an IT Contracting Service in Texas
This fast-growing company based in Dallas started with 5 employees in Texas and one in Oklahoma. Soon after starting with a PEO, they added an employee in Louisiana. As their search for talent led them to Tennessee to find a qualified candidate, their PEO informed them they were not licensed in that state for tax and workers’ compensation purposes.
The problem could have been avoided had the PEO salesperson initially asked, “Do you intend on hiring employees outside of Texas, Oklahoma, and Louisiana – the only states we’re licensed to do business in?” With the majority of PEO companies only licensed to work in their state of origination, this is an issue for many employers who reside close to bordering states and a question that should always be asked.
The owner of the IT business was frustrated, because they’ve been unable to hire and grow with this PEO’s limitations. Soon after our conversation, we helped them access a PEO with nationwide coverage and licensing, along with the benefit offerings their company needed to hire top talent.
Wrong Health Insurance for a Non-Profit in West Virginia
Using a PEO service for this group checked all the boxes in being able to outsource employment administrative burdens, along with accessing Fortune 500 type benefits. Problems occurred when their employees started learning that they had limited doctor options with their United Healthcare plan
This is another preventable situation- had the PEO salesperson just said, “Our United plans won’t be a fit for your area.” Instead, the employees were forced to manage with this issue for a year, seeing new doctors in locations further from their homes.
Within a few weeks after meeting the client, we were able to enroll this group with a PEO that offered an Aetna health plan with a broader network - and even saved them money on their administrative fees.
Excluded Class Codes for a Construction Company in Florida
The General Contractor for this business started services with a PEO having employees performing trim carpentry, drywall, supervision, and administrative work. The PEO services were great until the GC wanted to add a framing and roofing crew to his expanding business.
Unfortunately, the workers’ comp insurer for the PEO company doesn’t allow for those class codes and work under their policy. The employer had already interviewed candidates and had them ready to work these new positions. Now in emergency mode with contracts on the table and candidates ready to walk, the GC began making numerous calls for a solution before finding our company.
Within a week, we helped him access a PEO who could insure this work and enrolled his employees for coverage. Even better, he saved money compared to his previous provider, with no down payments or policy fees to start.
There are so many benefits and great services that a PEO can provide. But just as any business is unique to another, so is each PEO. We’ve researched and vetting hundreds of PEO services and HR companies from across the country since 2001 – that’s what we do! As an independent resource, we’ll take the time to understand your business needs and ask the questions that make a difference in services and costs.