There are more than 400 PEO service providers in the US, so how will you find the ones that are best suited for your company?
PEOs provide a vast array of PEO services, so you must look to find the PEO that has all the required components on your checklist.
It is also important to shop around before you decide on a specific PEO. This way you can make sure you have a competitive pricing for the level of service.
Getting multiple quotes from the respective PEOs is not an easy task as it requires you to fill out different sets of forms per each PEO from your selected list. To make things worse, PEO proposals can be extremely lengthy and difficult to compare to one another since there is no standard proposal format among them.
Often PEOs bundle rates and one cannot breakdown the various components such as worker’s compensation, state unemployment rates, or administrative fees. This is where a PEO broker can really help make this process easy and can find you the right PEO that will handle your business needs well.
Who Is a PEO Broker?
As the PEO’s desire to expand their client base across more industries and States within the US grew, many PEOs found it most advantageous to team up with an additional salesforce (brokers outside their own organization).
PEOs decided they would share a percentage of revenue with an outside salesforce rather than pay more salaries internally. However, not all PEOs allow brokers to offer their services.
There are some national PEOs, such as ADP Totalsource, who only work with their own internal salesforce or with a few advisors who agree to only recommend ADP Totalsource to all their clients. They have spent tremendous advertisement dollars to make their name known and currently they are the biggest and most well-known.
Advantages of working with a PEO BROKER
1. Exposure to more options and Faster Results.
Most clients when working on their own would have to perform a very time-consuming level of research to figure out which PEOs they should contact. It is likely they would not connect with all the right PEOs because it is very difficult to gather all the right information. With a PEO Broker, clients can find the right PEO much faster and get more options that they likely did not know existed as the PEO broker has already done all the due diligence for the client.
2. Free legwork.
A PEO Broker will gather all the necessary data from the client which is the only work the client has to do. After the PEO Broker has received all the information, he or she identifies all the parameters in the data to match the client to the right PEOs. Then the PEO Broker gathers quotes from the PEOs and handles all the back and forth with them.
The client sits back and lets the process run seamlessly from this point on which is handled by the PEO Broker.
PEO brokers are compensated only by the PEOs so all this legwork is free to the client even if the client decides not to partner with any of the PEO options presented.
3. Less hassle.
Because the PEO Broker handles the back and forth with all the PEOs, clients are not bombarded with emails and calls from the PEOs trying to get them to sign up. In other words, the client has no sales pressure.
4. Better rates.
PEO Brokers have maintained long-standing relationships with the PEOs. These relationships allow for PEO brokers to communicate to the PEOs what it is they need to do in order to gain the client’s business. In addition, the PEOs know there are other PEOs competing for the client’s business so they tend to go the extra mile for it. These two factors translate into better rates for the client.
5. Expedited process.
PEO Brokers have established quoted and implementation processes that reduce wasted time. In addition to that, well-established PEO brokers have solid relationships with the PEOs where they can request expedited quotes whenever tight deadlines are present.
6. One set of forms.
If a client were to quote 3 or 4 PEOs on their own, they would have to complete 3 or 4 different sets of forms. With a well-established PEO broker, you will only have to complete one standardized set of forms minimizing the initial amount of time needed on your end.
In conclusion, a well-established PEO Broker will provide you with more PEO options, better rates, less hassle, and only one set of forms, expediting the process and doing it all for free.
One last thing to remember is that not all PEO brokers are equal. We recommend working with an experienced and reputable broker. One that can provide you with a true apples to apples comparison.