A BROKER’S PERSPECTIVE ON HOW PEOS CAN RETHINK THEIR MARKETING APPROACH

PEOs can be a valuable partner and solution for businesses for a variety of reasons. These include scalability, efficiency, adaptability, and, at its core, allowing the employer to focus on their business.

But how does an employer understand which PEOs might be the right fit? PEOs deliver a compelling sales pitch and value proposition, so how do you identify the appropriate PEO of choice?

There are four key areas for PEOs to consider when marketing themselves to potential clients.

1. TRANSPARENCY
Not all PEOs are created equal, and neither are their proposals. It can often be difficult for employers to ascertain details in the proposed contracts, such as the administrative fee and what it includes. Most employers look for add-ons such as time and attendance, recruiting, and training. Having these as part of your initial proposal as additional services, with the fees attached, would proactively address employers’ initial concerns. Also, any mandatory coverages or add-ons in your proposal should be highlighted upfront. The goal is to make it easy for the employer to identify the fees in consideration.

Another area where the issue of transparency has come up is in data protection and data sharing. The new trend where PEOs are limiting access to census data, plan summaries, and invoices is a practice that fuels a negative perception of the PEO industry. For example, citing the Health Insurance Portability and Accountability Act as a reason to not release information is factually incorrect, as PEOs, brokers, and the employer all qualify to have access to the data. Furthermore, when an employer seeks an alternative to their current PEO provider, they are compelled to notify their current partner. This can likely translate into an unfriendly working relationship that fuels a negative perception of this industry.

More streamlined access to their data reduces the hurdles for employer clients and their consultants to effectively market their program for an alternative provider.

2. SERVICE MODELS
Not all service models are created equal, and each PEO uses slightly different terminology to describe those services. Clearly identify the nature of your model. For example, clarify if it is self-service, technology-based, or if you require the use of a call center for initial inquiries. Define the roles and responsibilities of the personnel attached to the customer service team so employers know whom to contact for their questions.

3.TECHNOLOGY

Within our PEO practice, we have seen an uptick in client requests for assistance with payroll processing. Two common payroll errors we have seen firsthand are with LLCs when partners are taking distributions and during bonus allocation which needs a payroll exception for taxation purposes. It is not enough to pitch a blanketed ability to process unique payroll scenarios; instead, provide examples of distinct solutions you solved that pertain to your prospect.

Describing how payroll is processed with timing is crucial, as is the standard available reporting package versus custom report building. Employers can be complex and unique; so are their payroll and reporting needs. Inspire them to have confidence in your platform’s ability to seamlessly deliver their needs.

4. BROKER AND CONSULTANT PARTNERSHIPS

The PEO industry has embraced the role of the trusted advisor and continues to make strides in building and fostering those relationships. PEOs would likely continue this trend by prioritizing building client relationships rather than focusing on transactions. The ongoing relationship with the client and their advisor is essential. Companies are looking for ongoing communication support for their own employees and options for continual education about benefits and plan coverage. Implementing quarterly service check-ins to work jointly on renewal releases enables the PEO and the consultant to continue demonstrating the partnership and commitment to their mutual client’s best interest.

Lastly, if PEOs wish to continue expanding their broker footprint, investing in broker-consultant partnerships can support that objective. Some PEOs vary in their prioritization of these relationships. Brokers seek ease of access to their PEO partners to build on their success while minimizing administrative challenges like broker representatives, direct sales force, or underwriting challenges. As a PEO, you can be the solution. For example, to address underwriting challenges, having a shorter approval process to determine if a fit exists would be a tremendous asset to the employer and broker community. This streamlines the process when identifying possible provider partnerships.

Most brokers understand that the PEO industry was built on the B2B model. However, there is great opportunity to pivot and adapt, embrace change and evolution, and continue their success while prospering alongside their broker partners. Leveraging these tenets as part of their marketing strategy can go a long way to realizing that success in the future.