How do you know you’re not overpaying for your current PEO services.
Your employees will love working with a Personal Employer Organization because it gives them a “point man” that acts as a third-party but has their best interests in mind. A company’s budget is always a concern, of course, so it’s imperative that you prevent overpaying for PEO services.
We always want to be straightforward with clients, so let’s look at how you can keep the cost of PEO services reasonable.
Research the PEO Company
Partnering with a PEO, or an employee leasing company, should always begin with going to Yelp and looking at a few reviews. Another important step is to check out the PEO company’s Better Business Bureau rating. Vested HR, for instance, prides itself on both of these factors.
On Yelp, you’ll find numerous positive reviews and our BBB rating is A+. If you want more, feel free to check out our client testimonials.
Ask What Sets Them Apart
As an aside to the previous point, you should ask how they conduct their services and how they would handle specific situations. Basically, what you need to know is what sets them apart from their competition as it relates to things like workers compensation, payroll services, payroll tax management, etc. This can also give you a good idea of their confidence and overall aptitude.
Know Your Precise Budget
Okay, when we use the word precise, perhaps we should say “mostly” precise. You should always have a little bit of wiggle room. The point, though, is that you need to have a very good idea of your budget for the PEO services. This will help prevent you from paying more than you should or, perhaps most importantly, more than you can.
It is our goal to help you lower your operational costs.
Obtain All the Costs Upfront
It may sound odd, but companies will sometimes jump into a service – whether it’s PEO or otherwise – without understanding all of the costs upfront. A reputable PEO company will explain to you all of the costs involved long before you officially engage their services. By going over all of the financial details that will include PEO HR services, payroll administration, employee benefits, workers compensation and day-to-day operations, it’ll be easier for you to save money and avoid overpayment.
Ask Questions About Services
The cost of PEO services often comes down to more than just the monetary amount involved. Yes, the money part of it is absolutely important and the crux of this discussion, but if the services leave something to be desired, then a lower cost might not be worth it. The PEO should be able to provide great benefits for employees and for your business as a whole as they enable you to more effectively run as a business.
Ask the Company to Negotiate
Your company isn’t the only one that might have a little wiggle room in the amount that certain services are charged. Although it does depend on the PEO services involved, the size of your company, the number of employees, etc., there may be some room to negotiate. Just remember that it never hurts to ask and even a small discount can free up a little money to go towards your business elsewhere.
Provide Accurate Information
If you want to keep the cost of PEO under control, then you need to provide accurate information. If you leave anything out, the PEO company will need to ask for clarification before the process can be complete. This can cause a delay, which means that it’ll take a bit longer before you start saving money and improving efficiency. In a situation where you’re concerned with divulging certain pieces of proprietary or financial information that’s being requested, feel free to write up a non-disclosure agreement.
Look for Full Transparency
The cost of PEO services should always be clear when you officially partner with them. Any good PEO company will offer you full transparency in the services they offer, how those services work, and the price that you’ll be paying. If they avoid questions or seem to intentionally make things unclear, that’s not the PEO company for your business.
Always Be Open and Honest
If you feel the cost of PEO services is too high with the company you’re currently using, don’t just start shopping around elsewhere. PEO companies understand that businesses often have tight finances, so you should always feel free to be open and honest with them. The same goes for any concerns you have about how they’re conducting certain services.
Contact Vested HR to Learn More About the Cost of PEO
Vested HR provides exemplary PEO services with full transparency of the pricing structure and our services. If you have any questions about the cost of PEO services or would like to receive a free consultation, reach out to our office at (727) 474-2114 today.