Common Questions and Misconceptions About The PEO People
Four Common Questions and Misconceptions about The PEO People:
With our business model, as in most industries, misconceptions abound. Breaking down the myths and truths of The PEO People is one of our favorite conversation starters that simultaneously builds trust in our mission – so we explore a handful below.
1) As the consumer, there must be an obligation or commitment on my part when working with The PEO People.
Let’s break this down by the two options; you either have a PEO currently, or you don’t.
If you are NOT with a PEO:
- You have an existing insurance broker (and it’s hopefully working well.) We do not ask for a broker authorization – we are not insurance brokers.
- We provide quotes and PEO industry comparisons. Transparency is the name of the game.
- We only shop the Buying Group Market – a totally different channel from the private market. Your current broker will not be privy to your quote search.
- Your broker may also shop carriers for you, so you may compare their quotes against PEOs. This allows you to make a fully informed decision that best serves you, your employees and your company.
If you have a PEO now:
- We set our sights on one goal: Finding you objective, viable and efficient options that align with BOTH of our goals. If we fail to find an alternative appealing enough to switch your current PEO management, we do not get paid.
- You recognize switching firms is an effort – and your existing vendor may even lower your rates. Several brokers ask for a piece of that savings. The PEO People does not.
2) Will my broker know that we are getting quotes from you as well?
We feel the need to reiterate this one, as most employers have a wonderful relationship with their broker. They do NOT shop in the PEO market that only we are able to access; the public market they use is entirely separate. In the PEO market, we are the brokers that shop the PEO market.
If we operated as another insurance broker getting quotes, the shopping process would become very stressful. This separation keeps The PEO People’s process virtually stress-free.
3) If you don’t charge a fee, how do you get paid as a for-profit organization?
It’s simple: We are paid if you pick one of the PEO services we have recommended. You do not pay us a fee directly. Just like your insurance broker, we are paid by the PEO. This is built into each proposal.
Our payouts are up to 80% less commission than your insurance broker receives from your current carrier – one reason they do not shop our market. More importantly, this market is “not just health.” We integrate a substantial grouping of top-tier HRIS; Payroll; Human Resources; Property and Casualty Insurers; and other benefit coverages. While it might sound too good to be true, this often can come at a much lower price point than your current coverage. It is simply a totally different field, comprising different knowledge, procedures, and contacts (hence why a provider might try to talk you out of a PEO solution.) We meticulously compare all vendors and give you the honest pros and cons of each.
The rates you receive through our firm are far less than when quoted directly from the PEO itself. We cut out direct sales managers – costing you around 25% – and carry those savings over to our clients. Our FAQs dig deeper into the time required to shop for PEOs – but the significant savings to our clients makes the labor-intensive search well worth the process. About 74% of the time, our proposals save our clients enough to move forward in changing to a PEO or from their existing PEO, ultimately making their lives far more manageable.
4) Don’t PEOs pay you differently, and doesn’t that affect how a broker recommends one vendor over the other?
PEOs do pay differently, but it is The PEO People’s policy that compensation is not a factor in any of our recommendations. We disclose all fees.
Some of the highest paying PEO’s brokerage fees stem from companies we do not recommend. Our objectivity has fostered our esteemed reputation, thanks to our in-house team of “relationship people” – and we are very proud of the integrity on which it was built.
Have we left off any PEO concepts you still can’t wrap your head around? Let us know here!