When it comes to growing businesses, using a Professional Employer Organization (PEO) makes sense, PEOs remove the administrative headaches from the business owners’ plate, allowing more time to focus on growing their core business. Professional Employer Organizations provide valuable services to business owners including benefit administration, payroll management, and human resources expertise.
Professional Employer Organizations help more than 175,000 small and mid-sized businesses every day. Many business owners do business with PEOs each year because the unique PEO model works. Do you have the right PEO? Don’t get stuck with a PEO that isn’t working for your business. Know the warning signs of a poor PEO relationship so you can make the change to a PEO that can better serve your business needs.
When it’s Time to Reconsider Your PEO
1. The PEO is Providing Subpar Service
If you do not like the level of service you are receiving from the PEO, it may be time for a change. In the PEO model, the PEO takes care of the backroom operations. Some signs that you may not be receiving the best service include the following:
- You are having a difficult time getting in contact with the PEO
- You do not know who your key contact or account manager is
- Your payroll is frequently incorrect or late and taxes are not paid on time
- There are problems with insurance plans and other benefits
When looking for and working with a PEO, service is key to your growing business’s success. The co-employment relationship should be honest and transparent between the employer and the PEO – make sure the interactions are positive and productive.
2. The PEO is Not Local
Doing business with someone who is in the same state can have many benefits – especially when it comes to the PEO relationship. A locally owned and operated PEO allows for more interaction between the PEO, the business owner, and the employees. This helps to foster a relationship that is built on trust and transparency. Representatives from the PEO are able to attend in-person open enrollment meetings and help one-on-one with new employee onboardings. A huge benefit of working with a local PEO is accessibility. Local PEOs offer the ability to quickly respond to customer questions and offer resolutions, based upon local market conditions.
3. The Return on Investment is Lacking
The goal for business owners who partner with a PEO is to help increase the business’s productivity and profitability while adding highly competitive benefits for employees at the lowest possible cost. One of the advantages of using a PEO is that it can help owners save money on the benefits they offer their employees. Since PEOs work with many employees from different clients, you can take advantage of the buying power they provide when searching for group rates on health insurance, retirement plans, and other employee benefits. These rates are generally significantly less expensive than if you were to seek them out on your own. If you are paying too much for services that do not add value, it may be time to reconsider the PEO you are working with.
Focus OneSource is Here to Help
Focus OneSource is an Iowa domiciled Professional Employer Organization. We are proud to be a local business with a mission to support growing businesses in Iowa by helping them increase productivity and profitability through a transparent and productive relationship.
Unlike other Professional Employer Organizations, Focus OneSource is owned and operated in the great state of Iowa. A relationship with Focus OneSource means all of your key contacts within the PEO are located in Iowa. Our high level of quality and attention to detail remains a top priority and we pride ourselves on exceeding our client’s expectations.
We fully believe that the PEO relationship is the best solution for growing businesses. Statistics show that businesses that partner with a PEO have an annual return on investment of 27.2% and are 50 percent less likely to fail.
If you are using a PEO that is not meeting expectations, don’t give up! Instead, do your research and find a PEO that your businesses’ best intentions in mind.
Interested in learning more about the benefits of working with an Iowa domiciled PEO? Call Focus OneSource today at 515-369-7597. We’ve got you covered.