EMPOWERING PEO SUCCESS: MAXIMIZING STRATEGIC IMPACT THROUGH EXTERNAL INFLUENCERS

When a company signs up with a PEO, two major parties are involved: the company or client and the PEO provider. While a PEO evaluation and implementation can be handled among those entities alone, it’s not the best way to go.

We’ve found that when clients enlist help from skilled and knowledgeable external parties, their chance of choosing the right PEO for them goes way up. Besides being an invaluable source of advice and information in the PEO selection process, outside entities work to smooth the data-gathering and implementation process. They can help clients get started on the right foot.

We talk to business executives all the time who have been told that a PEO might be worth investigating. Often, they’ve read an article on the subject or seen some ads. Everyone has lots of questions, naturally. They want to find out if a PEO is right for their company and decide for themselves if the benefits outweigh the cost, just as with any other business decision. Where do they turn to get their answers? In our experience, it’s external influencers and trusted advisors. Typically, not the PEO.

PEO shopping is something most companies should avoid doing on their own. It’s foreign territory for the most part and can be horribly time-consuming. A big reason for engaging a PEO is to stop spending so much time on administrative tasks. So why would company executives want to waste weeks researching and comparing PEO firms when a better approach exists?

UNDERSTANDING THE ROLE OF OUTSIDE INFLUENCERS IN PEO SELECTION

Outside influencers, like our company, play a pivotal role in the selection process by offering expert guidance. They streamline the process, ensuring clients match with a PEO that meets their unique needs. Their insights can be invaluable, especially if the clients are unsure about what to look for in a PEO.

PEO advisors assess a client’s business requirements and recommend PEOs that address specific areas important to the company. This targeted approach saves time and reduces the risk of selecting a PEO that may not fully align with the business objectives. Clients that collaborate with professionals who understand the intricate details of PEO relationships enjoy clarity and confidence in their choices.

Company executives might not have the specialized insights required to navigate the complex PEO landscape. A knowledgeable advisor can identify the best PEO options, considering factors such as industry-specific needs, compliance requirements, and employee benefit packages.

By leveraging the proficiency of an external resource, clients can avoid common mistakes that arise from a lack of experience.

HOW EXPERT ADVISORS BENEFIT THE PEOS

Outside influencers can help PEOs garner a wider distribution within regional markets. An external partner can give a PEO immediate access to networks of insurance brokers or CPAs-relationships that would take a PEO years to develop on their own.

PEO industry experts from outside the PEOs have a unique perspective on what the clients say they want from a PEO. Armed with this information, a PEO can adjust their offerings or develop new features with the confidence that they will appeal to their customers. A PEO aiming to expand into a new geographic area, for instance, would be well-advised to prominently advertise coverage from popular regional employee healthcare benefit providers. A PEO consultant who works with companies in the region can supply the PEO with this valuable information up front.

PEO services are a competitive marketplace. Creating the right presentation for a client can be the difference between success and failure. Because they deal with so much information about a myriad of topics important to all parties, knowledgeable external resources help everyone when PEOs partner with them.

UNLOCKING COST SAVINGS WITH THIRD-PARTY CONSULTANTS

Engaging a third-party consultant in a PEO selection process leads to significant cost savings, a benefit backed by testimonials and real-world examples. Our clients tell us they save between 30% and 60% in areas such as employee benefits, workers’ compensation, and unemployment insurance premiums.

Real world PEO experience varies greatly among individuals billing themselves as PEO consultants. Misinformation offered by less-qualified third parties reinforces a mysterious negative connotation that must be corrected. Educational opportunities like outreach programs and webinars, aimed at bringing PEO resellers up to speed, can make a huge difference in what they tell business owners and their management teams about PEO solutions.

Knowledgeable advisors compare various PEOs to find the best fit, ensuring clients don’t overspend on unnecessary services. PEO consultants produce precise cost estimates and comparisons, which help clients make informed decisions and avoid costly mistakes.

An advisor partner can negotiate better terms. Familiarity with industry standards and leverage in the market often results in more favorable contracts. Clients enjoy cost savings and better service terms, enhancing the overall satisfaction and effectiveness of the PEO relationship. Consultants arrange and manage meetings with potential PEOs, ensuring that discussions remain focused and productive.

Clients of trusted advisors or outside influencers may reach out to the incumbent PEO if they encounter service challenges. If they don’t get a response, their next call is likely to be the external influencer. The advisor must have ready access to all the internal PEO resources to resolve the situation quickly. Failure to do so can cause clients to shop for a new PEO at contract renewal time.

In our case, as a third party to the CSA, we ask PEOs to include us in their service operation. This strategy is tremendously beneficial for year-over-year client retention. Plus, we are more likely to place increased volumes of business with PEOs that work closely with us as partners. We know the clients will be well supported.

With the right PEO, smaller organizations can provide employees with Fortune-500-style benefits. Such offerings enable smaller businesses to attract top-tier talent who might otherwise gravitate towards larger corporations with more robust benefit packages.

Most people in our industry reading this edition of PEO Insider® know that clients with PEO-supplied competitive benefits increase employee satisfaction and loyalty, reducing employee turnover. This is especially true for smaller organizations.

A stable workforce lowers employee acquisition costs, as businesses spend less time and resources on recruiting new talent. Retaining seasoned employees also reduces training expenses associated with onboarding new staff. These savings may not show up as line items in the company balance sheet, but they contribute to the long-term success and growth of smaller businesses.

Often, it’s client operational efficiencies, the “soft dollar savings”, that are never quantified in a black and white proposal, where external Influencers shine. The client trusts the external influencer more than the PEO salesperson to objectively validate and quantify investments in the PEO administration fees.

OUTSIDE INFLUENCERS: A CRITICAL ENTITY IN THE PEO ENVIRONMENT

Clients and advisors like accountants or insurance brokers all profit from investing in assistance from professional PEO consultants. At every step of the process, knowledgeable experts work to bring parties together, coordinate efforts, and create PEO arrangements that work for everyone involved.