Choosing the right PEO

A professional employer organization (PEO) can help your company handle all of its human resources and could be the boost your company needs . If you’re seriously considering partnering with a PEO to help with everything from compliance to benefits, a little research can go a long way. Here are a few things you should look at when determining which PEO to partner with:


PEOs can be great for small to medium sized businesses because they allow businesses to get much needed assistance on complicated human resources tasks and focus their efforts on the growth and profitability of their business instead. Of course, this only works if the PEO is affordable. Before digging deep into costs, it’s important to know how the pricing structure works. PEOs typically charge two different ways, often a percentage of total salaries (3-8%) or as a flat per-employee-per-year fee. When reviewing costs, determine which structure works best for your company and compare PEOs based upon the services they provide and the fees associated with these services.


A PEO is not meant to replace your HR department, but to serve as an extension of your business. Thus, finding a service that integrates well with your current processes can be a determining factor in the selection process. If your process is not refined, PEOs can provide consistent administration and often times improved technology resources. When picking a PEO, you should ask about the technology they offer and whether or not they will continue using programs that you have already purchased.


Get a feel for the type of service and level of service that each PEO will provide to you. Some PEO arrangements will have a dedicated service team that you can contact and speak with over time whereas others may charge extra to speak to a live representative or use call centers to answer questions.

Additional services like training can also be available under certain PEOs. These services can be very valuable to smaller organizations because they provide great opportunity for professional development and ability to maximize the current workforce.

Other notable considerations

  • Expertise & experience – Determine the level of expertise within the internal staff. The PEO will be handling important documents and services, so a good understanding of your industry along with your geographic area would provide a big benefit.
  • Tailored benefits – Does the PEO fit the needs of your employees? It’s a good idea to speak with your employees before selecting a service and determining what their needs are, as these needs can vary.
  • References – Professional references are always reassuring. Speaking with clients who have had success with the services you will adopt allows you to determine if the service will be right for you.

Ultimately, many factors should be considered before jumping into an agreement with a PEO and this is not a decision that should be taken lightly. To determine if a PEO is right for your company, or for help in electing the service that best fits your company’s needs, Contact Us !