There are over 900 PEOs in operation today, providing services to some 175,000 small and mid-sized businesses. With such a wide variety of PEOs from which to choose, it can be challenging to find the right one for your particular company. Your choice will largely determine whether your partnership yields an above- or below-average ROI — in other words, an ROI more or less than 27.2%.
How can you make an informed decision and reap the benefits of such a partnership? In very simple terms, you need to search for PEOs that provide exceptionally comprehensive and personalized services. In this regard, there are at least seven key factors that need to be on your radar.
Simple Pricing
Far too many PEOs today hide their fees beneath deceptively low "flat rates." They may add extra "monthly fees," "service charges," and other line items that drive up your company's overall cost, leaving you without the savings you originally anticipated.
In contrast, the best PEOs will only charge one type of fee: dollars per employee per check. Other than paying taxes, there should never be additional charges in an agreement with your PEO.
Smooth Onboarding
All too often, onboarding with a new PEO is a complicated, time-consuming, and tedious process. Many PEOs require their newly acquired clients to re-enter loads of information or submit a mountain of paperwork as part of the onboarding process. In effect, they penalize the client for exiting a previous relationship with another PEO or payroll processing company!
The onboarding process from a superior PEO should be smooth, easy, and stress-free. For instance, the PEO's software should be intuitive, with a fairly short learning curve. There should be easy integration between the PEO's platform and your current system, with support specialists on the PEO's side standing by to help.
If transitioning to a new PEO feels like a ton of work, then you haven't found the right PEO yet.
Dedicated Specialists
Today, many PEOs have account executives that fall into the proverbial "jack of all trades, master of none" category. They may have some limited knowledge of payroll processing, safety training, or benefits administration. However, they don't have the in-depth expertise required to troubleshoot complex problems or manage client expectations effectively.
You should search for a PEO that retains dedicated specialists on its staff, ready to provide support, training, and troubleshooting.
Applicant Tracking and Job Posting
The streamlining of the hiring process is a huge component of any PEO's purpose. Look for a PEO that has the technical infrastructure needed to make your recruitment strategy and tactics much easier.
For example, a best-in-class PEO will offer HR software supporting the entire employee lifecycle, including the hiring stage. The PEO's platform should be capable of creating customized screening questions according to the parameters of the open position without making you switch interfaces. Moreover, the PEO-provided software should make it easier for your team to create the ideal candidate profile, which will help your recruiters search for top talent.
Time-Keeping Solutions
Attendance tracking, time-off requests, scheduling updates — these functions are often scattered across several platforms, resulting in time inefficiencies for administrators and workers alike. However, an exceptional PEO will provide a unified time-keeping solution in the form of integrated time and labor tracking software. In combination with an employee self-service portal, it will be easy to monitor your employees' time and attendance, review time-off requests, and transfer the recorded data to payroll for processing.
Employee Handbook Creation Within 60 Days
Over the first two months of their relationship with the client, far too many PEOs set small (even inadequate) goals for themselves, such as basic onboarding and a high-level review of payroll objectives. While there is something to be said for taking it one step at a time, the question must be asked: Why do these PEOs proceed at such a slow pace? Is it possible they lack the necessary resources to do more, or do they lack the experience?
In contrast, a best-in-class PEO will provide a new client with a tailored, professionally-made employee handbook, a detailed drug testing policy, a safety manual, and customized payroll reports — all within the first two months of the partnership. That bespeaks true efficiency.
Return to Work Programs
The return to work program that a prospective PEO will implement is one final factor to consider. Workers’ compensation insurance can skyrocket if claims are not managed correctly, and the PEO does not perform due diligence by following up with each claimant. On the other hand, an exceptional PEO will provide an effective return to work program that minimizes the costs associated with workers’ comp claims without jeopardizing the health and safety of your workers.
Why Choose Zamp HR
The reality is, most PEOs today provide a very basic set of services, such as payroll processing, benefits administration, and legal advice around compliance. However, such services are just the tip of the iceberg when it comes to a PEO's true potential.
Unlike other PEOs, Zamp HR fits all of the requirements mentioned above. Moreover, because Zamp HR is locally based, we don't have to roll overhead expenses for nationwide offices into our base rates. In summary, our expertise, coupled with our reasonable pricing, has resulted in a 98% retention rate among our clients. To learn more, reach out today.
