Is Your PEO Company Working in Your Best Interests?

For small and medium-sized businesses, engaging a Professional Employer Organization (PEO) is practical. Outsourcing human resources functions, such as payroll and payroll tax management, and employee benefits, allows business owners to focus on core business operations. But there’s a tipping point when filtering your HR operations through a PEO company no longer makes good business sense and defeats the original purpose. 

If it’s been a while since you evaluated the effectiveness of your current PEO’s services, it may be time for a PEO audit to determine if your current PEO company is really making a difference. Here are a few PEO challenges to look for:

Your Current PEO Company Does Not Have the Human Factor

Working with a large-scale PEO that has thousands of clients can be a bit of a catch-22 for small and medium-sized business owners. While these massive organizations have a deeper well of services, resources, and experience, they don’t always have your best interests in mind. Most of them are likely to have a one-size-fits-all approach to helping companies grow. They also rely heavily on technology to manage their client base- losing their human element.

Client companies frequently run into trouble with PEOs that don’t match their company culture or fit with the expectations of their specific industry. If you feel like a number to your PEO, it’s time to find the ‘right sized’ PEO. One that provides premium, personalized services synonymous with a small PEO but has the technology and expertise that many of the larger PEOs offer.

Your Current PEO Company is More Focused on Their Goals

You hired a PEO to help you tackle your HR headaches and grow your business. At the same time, your PEO relies on your business to expand and grow. Still, your PEO company should never put more focus on its goals at the expense of your growth. But some PEOs commit to achieving the next goal that they put their needs before the client’s. You should definitely switch PEOs if they are missing out on the bigger picture and aren’t working in your company’s best interests.

Your Company Culture is Deteriorating

Companies that have both a PEO and an in-house HR team sometimes find themselves in a culture clash. One of the biggest benefits of partnering with a PEO is that it allows your internal team to focus on building up your team and creating a positive work environment. However, some resentments may arise when a third party is brought in to handle some functions of your internal team. If your PEO company is not providing you with a competitive advantage or there’s strife within your team, you may want to consider other options.

Your Employees Dread Calls with the PEO

A relationship with a PEO is like any other relationship; if there are constant issues, then there’ll be an emotional toll. When you outsource your HR functions to a third-party company with multiple clients, speedy resolutions aren’t always the norm. But if the PEO lacks proper channels of communication or things aren’t working between your company and theirs, you and your employees may dread the need to make important phone calls.

Whether you’re looking for answers or just checking in, you may feel as though your PEO isn’t listening to you. Delayed responses and confusing communication can affect employee morale, which can lead to high turnover rates. Your PEO should make you and your employees feel relaxed and ensure your business needs are being met. You should feel as though each conversation with the PEO leads to effective solutions.

Your PEO Isn’t Providing Competitive Benefits

The employee benefits landscape is constantly evolving. The rates, package details, and perks change each year, and better benefits packages pop up. Inadequate or low-quality health insurance and other benefits are the reason many employees leave their jobs. If you feel like your PEO isn’t giving you access to competitive benefits packages or workers’ compensation insurance, then they aren’t making a real difference and you should consider other options. 

You Have to Part Ways to Get the Results You Want

If your current PEO isn’t measuring up to your expectations, it may be time to consider a better alternative. Choose a PEO company that meets your needs, works in your employees’ best interests, and is committed to helping you achieve your goals.

Vested HR is a leading PEO serving business owners in Florida and across the nation. We are committed to providing employers and managers with industry-leading products, services, and PEO solutions that keep employees happy and motivated. We become a true partner to your business and use a human-focused approach that will help your business thrive and stay on top of a competitive and dynamic market. Contact us today to schedule a consultation. Let us take care of your team so that they can take care of your customers.