It May Be Time to Reconsider Your PEO – Here’s Why

When it comes to small and mid-sized businesses, using a Professional Employer Organization (PEO) makes sense. PEOs remove the administrative headaches from the business owners’ plate, allowing them to focus on growing their core business. Professional Employer Organizations provide valuable services to business owners including; benefits administration, payroll processing and tax administration, human resource consulting, and so much more.

Professional Employer Organizations help more than 175,000 small and mid-sized businesses every day. Many business owners choose to 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 a 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 of the small business they are working with. Some signs that you may not be receiving the best services 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 success. The co-employment relationship should include close interaction 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 as you have many benefits. Especially in regard to the PEO relationship. The PEO is built on the co-employment model which may be a new concept for some employees and business owners. 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 hire a PEO is to help increase the businesses productivity and profitability, while adding highly competitive benefits for employees at the lowest possible cost. One of the main reasons business owners seek out PEOs is the value that they offer. Running and maintaining a business is expensive and the PEO model allows business owners to gain access to benefits and services that would otherwise be out of reach. The unique PEO model groups these services into a package deal at a price point that is more attainable for small businesses. If your small business is paying too much for services that do not add value, it may be time to reconsider the PEO you are working with.

How Focus OneSource Can Help

Focus OneSource is an Iowa domiciled Professional Employer Organization. Not only are we locally based, but  like our clients, we are also a small business. Who understands growing business more than fellow small business owners? Focus OneSource is proud to be a local small business with a mission to support growing businesses in Iowa by helping them increase productivity and profitability through an enjoyable 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 in Iowa. Our high level of quality and attention to detail is 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 growing businesses that use PEOs can see 7 to 9 percent faster growth in the business 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 really has your back. 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.

Alaina Riley
Marketing & Wellness Coordinator

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