Whenever we hear the question, “Is a PEO right for my company?” we follow up with another question:
What are your business challenges? Do they include:
☐ A feeling of being overwhelmed by HR administrative tasks
☐ Employees asking challenging questions about their insurance, benefits, or pay
☐ Too much time spent on persistent, headache-inducing HR issues
☐ A limited amount of time to handle HR tasks
☐ A lack of expertise for solving HR challenges
☐ The nagging feeling that you’re “letting things go” when it comes to compliance and regulatory requirements
☐ Subpar (or non-existent) benefits that are frustrating your employees
☐ An overwhelming patchwork of HR vendors and platforms that are hard to manage and cost too much
If one or more of these things sounds familiar, then now is the time to consider outsourcing to a Professional Employer Organization, or PEO.
But where do you start?!
As New England’s premier PEO for small to midsize businesses, we at GenesisHR know a thing or two about what the best PEOs have to offer—but we also know that picking the right PEO for your business can feel overwhelming.
You’re investing a lot of money (and trust) into the PEO you choose, so you want to make sure you choose wisely.
Which PEO is right for my company? 3 Questions To Ask
1. What are your employees’ credentials?
You wouldn’t trust your luxury vehicle to a first-time mechanic, and you wouldn’t hand your newborn baby to an inexperienced babysitter. So why would you place your company into hands that don’t have the expertise to navigate all your HR challenges?
Most small and midsize businesses don’t have one single hire on staff who can handle the entire HR universe, and one-off outsourcing these providers is expensive. As the employer, make note of each of your employees’ specialties. Ask about their competencies in benefits, payroll, compliance, and regulations, and even the number of years they’ve worked in HR. Then, use that list (or the holes you find) when searching for a PEO.
Each of these areas has professional designations that can be obtained through organizations like SHRM. These designations will also indicate to you that the PEO company you’re investigating knows what they’re doing.
At GenesisHR, we earn our clients’ trust by bringing to the table competencies and designations from various professional organizations under the HR umbrella, including The Employer Services Assurance Corporation (ESAC) accreditation.
2. What is your company’s experience level?
Beyond looking at individual credentials, you’ll also want to identify the experience level of the PEO company as a whole.
- How long has the PEO been in business?
- What is the average tenure of their staff?
- How long do clients stay with the PEO?
- Does the company provide references and testimonials?
3. Are you a Certified PEO (CPEO)?
IRS-designated CPEOs are held to very strict financial reporting requirements. They must file their taxes accurately and on time, and manage their business finances well (so the business remains healthy and won’t disappear overnight). CPEO designation is difficult to earn: Of 900 PEOs in the industry, fewer than 10% hold CPEO designation. GenesisHR is proud to be among the 84 firms nationwide that were included in the first wave of approvals for Certified PEOs.
Download the entire checklist below to find the right PEO match for you.
These three questions are just a sample every employer should be asking as part of the interview process for finding a PEO. To get the entire printable checklist, click below to download it absolutely free.