How have PEOs Changed?
July 11, 2019
Question: I shopped PEO’s before and they didn’t work – so what’s different now?
Well, that depends on a few things such as when you shopped them last, among a variety of other factors.
SBE479 Legislation CHANGED EVERYTHING:
Several years ago, the Federal Government passed an act which made the total industry far more professional (which is ironic of course, considering that the P in P.E.O. stands for Professional) but the truth is it wasn’t too professional back then.
Technology Changed EVERYTHING:
In the past, most PEO‘s were not really fully integrated. The systems just really didn’t work well together even if they were the same platform, and most were simply a patchwork of systems.
Now many – but definitely not all – have fully integrated systems that:
- Are user-friendly, easy to implement, and seriously help with running a business.
- Include everything from Onboarding to Applicant Tracking, Health Insurance to Benefits, Administration, Pay as you Go Worker’s Comp., Organizational Management, Performance Management, Planning, Attendance, FMLA, etc.
Health insurance costs continue to rise, and carriers have left the market
These massive buying groups can now save even more money in purchasing benefits than they used to! Sometimes up to 30% for the same plans and often the same carriers (same with Workers comp and sometimes with SUTA as well). Click here to start getting quotes from multiple PEOs.
Not only do they save you money over the first year, but they continue to have Lower Renewals than the private market.
HR COMPLIANCE AND LAWSUITS HAVE CHANGED
From the Employee side: everybody is suing everybody about everything. Sexual harassment, FMLA, Overtime, discrimination of all kinds, Equal Pay, ACA, wrongful termination, wrongful hiring, wrongful looking the wrong way, etc…
From the Government side:
Fines and penalties from the DOL, IRS and OSHA for everything from the ACA to you name it – are being enforced for real finally. Ahhhh.
FROM THE PEO SIDE:
Many PEO’s, but absolutely not all, have dramatically improved their assistance in HR to reduce your liability, and included a comprehensive EPLI that will give you and your firm legal and insurance protection for most HR lawsuits. Remember – under the federal act they are liable too, so their job is to make sure you don’t get sued at all.
PEO Sales practices:
This is one of the few things that hasn’t changed. They still have direct salespeople that sell only that company. They are paid more the more they charge (so, of course they still overcharge you). They still switch companies all the time. They still disappear after the sale.
THIS IS NEW ALSO – This industry now has middlemen that actually tell you the truth! They save you money, cut out the expensive direct sales-y sales rep, and pass on the wholesale rates they get from the PEO’s. In addition to that, they know who is good and bad and why – and they’ll save you tons of time making sure you don’t pick the wrong one!!
Who is THEPEOPEOPLE.COM AND SBE479.ORG?
We are the industry leaders in PEO brokerage. We wrote the books on how to shop for PEO’s, The Secrets the industry doesn’t want you to know, and we get the best prices for our clients (don’t forget – we’re better then if you try the direct route because of our wholesale prices). We have tons of happy clients and exclusively do this, so you know we’re the experts!
We’re the only ones who get you a fair price, guaranteed!