Demand for Professional Employer Organizations (also known as Employee Leasing Companies) continues to soar with double-digit increases over the past decade. But how do you find the best provider for your business without feeling like you’re a contestant on The Amazing Race?
It really comes down to two options: start contacting multiple providers or utilize a broker. The reality is both the broker or direct salesperson will be compensated for their services, so why use one over the other and who will give you the best bang for your buck?
While there are great direct salespeople, they have just one company to sell – the one they work for! You may spend hours making calls to try and find one provider that services your industry, works with companies your size, or offers the types of benefits you need.
Some employee leasing services specialize in high-risk industries such as roofing, steel erectors or arborists with steep work comp insurance discounts. Others favor low-risk professions like medical offices, restaurants or light manufacturing, promoting employee benefits, HR and governmental compliance services as their value proposition.
The majority of the over 700 PEO providers only service the state that they’re located in and do not provide “A rated” workers’ compensation insurance. So what if you have employees in other states, need help creating employee handbooks, require job-costing reports, employee pay-cards, or a time and attendance system?
These are just a few of the many differences that separate these outsourcing companies.
An experienced PEO broker knows the industry, the providers, their history and who does what well. Working with a reputable, independent agent helps you control employment-related costs in several ways:
Pricing. PEOs utilize brokers over a direct sales force to be competitive in the marketplace; eliminating insurance costs, cars, computers, office space and more. Therefore, a PEO broker always costs less than going direct.
Controlling annual costs. A business owner’s payroll, workers’ comp rates, state and federal unemployment insurance fluctuate. A broker can help by using this data and your claims history experience in negotiating new rates. A direct salesperson is more likely to share in the additional revenue with their employer.
Accountability. A professional brokering agency keeps in touch and needs to know that the leasing companies they refer are delivering on their promise. The agent has owner’s and manager’s numbers to quickly solve problems and address any issues that may arise.
I’ve seen first-hand the impact employee leasing can have on an employer. We’ve played a part in helping many small business owners increase profit margins by double-digits and secured coverage when no one else could.
Using a Professional Employer Organization could be the best decision you ever make for your business. You’ll get help with that decision by using the experience, knowledge and unbiased communication from a PEO broker.
Since 2001, Employee Leasing Quotes has helped thousands of business owners answer the question – “What can a PEO do for me?” Give us call, we can help. 1-888-582-8388. firstname.lastname@example.org