Why Use a PEO Broker?
On a regular basis, business owners should evaluate their current situation in terms of payroll, employee benefits, workers compensation and human resources compliance. What options are available and how do the costs compare?
One option is to use a PEO (Professional Employer Organization). A PEO has many advantages in handling these functions. What is a PEO?
If considering a PEO, the employer can obtain proposals individually from each PEO. When an employer wants to obtain proposals from several different PEOs without using a broker, they have to talk to one sales consultant per employee leasing company. By doing this, they will be asked to provide extensive data regarding pay rates of all employees, insurance policies, overhead costs, credit background, workers' compensation loss runs, and often health questionnaires to each sales consultant. After all this work, the PEO may be uncompetitive or may decline to quote. Each sales representative will give a biased opinion of their own company and may present their company's advantages in a way that makes it difficult to compare apples to apples with the competitors.
By using a PEO broker, the business owner only has to give out this confidential information needed for a quote to one person. The broker has thorough knowledge of the companies he/she represents and can give an unbiased opinion of each of them. Since the PEO broker knows the strengths and weaknesses of each PEO, he/she can determine which one is appropriate for the business owner.
One option is to use a PEO (Professional Employer Organization). A PEO has many advantages in handling these functions. What is a PEO?
If considering a PEO, the employer can obtain proposals individually from each PEO. When an employer wants to obtain proposals from several different PEOs without using a broker, they have to talk to one sales consultant per employee leasing company. By doing this, they will be asked to provide extensive data regarding pay rates of all employees, insurance policies, overhead costs, credit background, workers' compensation loss runs, and often health questionnaires to each sales consultant. After all this work, the PEO may be uncompetitive or may decline to quote. Each sales representative will give a biased opinion of their own company and may present their company's advantages in a way that makes it difficult to compare apples to apples with the competitors.
By using a PEO broker, the business owner only has to give out this confidential information needed for a quote to one person. The broker has thorough knowledge of the companies he/she represents and can give an unbiased opinion of each of them. Since the PEO broker knows the strengths and weaknesses of each PEO, he/she can determine which one is appropriate for the business owner.