Is Your PEO Taking Good Care of You?
By Chris PetersonFirst published Updated
The short answer
A good PEO answers quickly and accurately, runs payroll and tax filings correctly, puts qualified HR professionals on your account, trains your people on compliance and resolves HR issues fast. If yours doesn't and won't fix it, compare it against the market; sometimes the answer is renegotiating, sometimes switching, sometimes staying.
When you trust your HR to a professional employer organization (PEO), you expect smooth sailing on employee relations, pay, labor law compliance and everything else employee-related, plus prompt, professional service from the people assigned to your business.
Sometimes a PEO doesn't measure up. Calls go unreturned. Answers are unsatisfying. Problems never get followed up. Or the PEO doesn't have the expertise to manage your employees well.
What should you expect from a good PEO?
- Quick, accurate answers to your questions
- Correct payroll and tax filings
- Qualified, certified HR professionals on your account
- Regular, effective compliance training for employees
- Fast resolution of HR issues
If you aren't getting these and your PEO isn't interested in fixing it, it's time to look at other options.
How do you assess your PEO?
Customer service
A common complaint from PEO clients is calls and emails that go unanswered too long. Slow answers are frustrating; wrong answers are risky. Poor guidance can bring fines for mishandling a labor situation, or leave you without the right insurance.
Does the cost match the value?
A PEO should provide the services your business needs at a fair price. If you haven't had an analysis done in a while, the cost may have drifted out of line with the value. A full look at the PEO market and the open market shows where you stand; that's the analysis PEO Consultants does, and sometimes it shows your current PEO is the best value.
What's the risk if you don't change?
Changing HR providers isn't easy, but lost productivity from chasing your PEO, and the risk of wrong answers, can outweigh the hassle of switching. The upside is reliable, prompt HR support, and possibly lower costs.
Most PEO contracts need written notice before you leave, commonly 30, 60 or 90 days, and many renew on their own if you miss the window. January 1 or the first day of a quarter is usually the cleanest start date.