These days, employee leasing is becoming a norm, and that is the main reason for the emergence of Professional Employee Organizations or PEO’s. However, to choose a reputed PEO for your organization, you must do a lot of homework and try following these ways to hire a PEO for your firm too.
Best ways to select a PEO for your firm:
1. Set aside the roles of a PEO: A PEO would be doing a lot of HR works – from handling your firm’s recruitment to management of risks, employee payrolls and even functioning as a co-employer for small sized companies to medium or even big sized companies.
2. Not temporary staffing agency: A PEO will not be just hired for helping you to recruit employees in your company. In fact, after the employees are hired, the other administrative works of discussing health insurance packages and other employee benefits will also be handled by such organization.
3. Meet all the PEO companies: It is essential that you take time to visit the PEO companies in their office and know for yourself about their credentials. A look through their portfolio should help you identify and relate to how well they would be suitable for your own company.
4. Looking for online memberships and other liaisons: Do take time to ensure that the PEO you are planning to hire, are certified by the organizations like Employers Service Assurance Corporation (or ESAC). You shall also check if the vendor you are planning to have as your PEO also has been audited by the CPA.
5. Get sound references: Fellow industrialists shall know the exact company or the kind of PEO you shall need and shall be offering you recommendations too.
6. Look through their past experience: If you look through their portfolio, you shall know if they have similar work experience and were successful or not.
7. Know how employee benefits are funded: Are the employee benefits going to be fully insured or funded completely? Get complete information from the PEO.
8. Get the fee breakdown in writing: You shall ask for the fee that they charge and that too in writing.
9. Negotiate the fees: You are most welcome to negotiate the fees, in case you are otherwise satisfied or are willing to have them on board.
10. Be careful about the contract: Have your lawyer with you when the contract is signed that assigns them their duties and the fee allocation. It is very much essential that you read and know clearly the kind of liability they carry and the way they shall help in running your business too.
One cannot be too cautious all the time, but a little bit of caution would surely help any company get the best deal. So, take care and hire the best PEO for your firm.