10 Questions to Ask When Hiring a PEO
Have you decided to hire a PEO? If you’re still undecided, consider the basics of PEO’s here and the pros/cons of PEO’s (link). If you are, it’s time to find a PEO that is the best fit. But how to determine this? Business News Daily’s Guide to PEO’s includes a list of things to look for in a PEO. 10 questions to ask when hiring a PEO are listed below.
- As your business grows, will the PEO be able to grow with you? For example, will the offerings be a one-size-fits-all package, or will the provider tailor a program to your needs?
- Does the PEO provide all of the services you currently want and may want in the future?
- Will the PEO team administering services for you be trained to know federal, state and local labor laws that could impact you and your business? Given today’s ever-changing regulatory environment, it’s more essential than ever that businesses ensure compliance.
- What kind of user access does the PEO offer? Will your employees have online access to payroll and benefits administration? Do they have mobile apps to make it easier to see payroll stubs and other HR information?
- What does the cost structure look like? Each PEO has its own method of billing and pricing. Be sure you have a good handle on exactly what that entails so you can budget accordingly.
- Is the PEO financially stable and secure? You don’t want to partner with a PEO that is in danger of going out of business.
- What kind of commitment does the PEO make to customer service? Will you have your own dedicated team of support members, or will you have to call a 1-800 number every time you need help?
- Is your PEO accredited? PEO accreditation provides assurance that you are working with a secure provider.
- Is the PEO licensed? Some states require licensing for PEOs. Others require registration. Some require neither. Find out what the rules are in your state, and if applicable, verify that the PEO is compliant.
- Does the PEO have positive referrals? Referrals help you look past a PEO’s marketing and sales lingo to get the real story. Ask fellow business owners who have used PEOs whether they would recommend the service and why.
Make Your List, Check it Twice
Does your potential PEO meet all these requirements? If the answer isn’t yes, reconsider. If your PEO fails to fit your company’s needs, lacks a license/accreditation, and proves unstable, re-consider their hiring. You need a PEO that enhances your business, not put it at risk. Scrutinize these questions and carefully consider who your company should partner with.