Guidelines for selecting the best Professional Employer Organization (PEO) for your business
When you’re considering partnering with a Professional Employer Organization (PEO) you must know how to select the best one. Delegating some of your business functions is a major decision that you should consider carefully. For this reason, it’s essential to know how to spot the proper service provider.
In this article, you’re going to learn everything you need to know about how to select the best PEO for your business. In addition, you’re going to understand the most essential aspects a trustworthy PEO has. Let’s observe:
- Guidelines to choose the best Professional Employer Organization (PEO) for your business
- Why is compliance a major aspect in a PEO?
- What range of benefits should you consider in a PEO?
- What kind of service does the PEO offer?
- Why should you consider a SLA when working with a PEO?
- What client and professional references do the PEO have?
- Why is Connect Resources your best option for PEO services?
1. Guidelines to choose the best Professional Employer Organization (PEO) for your business
Working with a Professional Employer Organization (PEO) could improve your business in several ways. However, before deciding to enter this partnership it’s crucial to understand how to choose the perfect agency.
As a business owner, you need to have the best ally for your organization. With a PEO you can delegate your HR functions but it’s important to look for a reliable provider. If you want to make a wise decision, you need to know the characteristics of an outstanding PEO.
1.1 What is a PEO?
Before choosing a partner it’s important to know what you’re looking for so you can establish your expectations. A PEO is a service provider that can help you in several areas which are the following:
- Attract, select and retain a productive workforce
- Manage the risk associated with your employees
- Relieve your business from HR burden
- Provide expertise and management of time-consuming administrative tasks
- Ensure regulatory compliance with laws and regulations
1.2 Why should you select the best PEO?
Delegating some or all of your HR functions could be the best for your business. However, it’s not without risks; therefore you should choose the proper service firm if you want to reach success.
There are several evaluations you can carry out when you’re considering a partner to help you handle your administrate tasks.
But, why should you look for the proper PEO? Let’s observe the following reasons:
- Receive a customized service that fits your needs
- Have a dedicated team that help you reach your strategic goals
- Get an outstanding management of your HR responsibilities
- Have a better understanding of your requirements and receive the proper solution
As you can see, selecting a PEO is not something you should take for granted. You should look for the best agency that understands your needs. For this reason, Connect Resources could be your best option.
2. Why is compliance a major aspect in a PEO?
When you’re looking for a Professional Employer Organization (PEO) you should look for experts in compliance. As a business owner, you need to comply with local laws if you don’t want to incur in any liabilities.
Since in the UAE there are many regulations and they’re being continuously updated, you should handle compliance with care. For this reason, a PEO could be the perfect solution for your business in this matter.
2.1 Expertise in compliance
If you consider the Professional employer organization pros and cons you should put a focus on compliance. When you’re selecting a service provider for your business you must have a partner that ensures total compliance. As an organization, you should follow the rules regarding employment, benefits, taxes, contracts, and many more.
How can you choose the perfect PEO in terms of compliance? Let’s observe the following:
- Look for a PEO that has a strong legal team that adapts rapidly to changes in regulations
- Ask the PEO how they keep up-to-date with local, state and federal laws
- Check if the PEO has a team dedicated to deal with local authorities
- See if the PEO offers a dedicated team to assist you with your compliance concerns
- Check if the PEO offers compliance support when you develop your processes
If you’re able to find a third-party that ensures compliance you can have a lot of peace of mind. Hence, you can focus on your core business activities while the PEO ensures legal compliance.
3. What range of benefits should you consider in a PEO?
One of the major reasons why businesses opt for a Professional Employer Organization (PEO) is because they’re looking for a better range of benefits.
Although there are several PEOs and all of them offer better benefits, not all of them offer the same. For this reason, you should take a closer look at the range of benefits the PEO offers.
If you’re the owner of a small or medium-sized business, partnering with a PEO could be the perfect choice for you. You can obtain outstanding benefits at a better cost since this is a great advantage that PEOs offer. Hence, you can look for a solution that fits your workers’ needs.
3.1 Better benefits with a PEO
If you look for the Top 10 PEO companies you’re going to see that they have something in common: better benefits. When you opt for a PEO model you get the opportunity to have access to benefits that otherwise were only available to large corporations.
How can you evaluate the range of benefits of a PEO? Let’s observe the following:
- Check the programs the PEO offers
- Compare the several offerings you get from the different PEOs
- See if the program fits the needs of your employees
- Ask about the types of employee benefits the PEO provides
- Check if the PEO offers valuable additions to the program such as employee assistance programs
3.2 Why are benefits important?
Perhaps you’re wondering why you should consider the range of benefits when choosing a PEO. It’s important to have access to better benefits and a vast array of options you can choose from.
In addition, it’s important to consider the cost-effective solution PEO offers to your business. Thanks to this business relationship you’re going to be able to offer a better package to your employees and thus you’re going to retain them.
4. What kind of service does the PEO offer?
Asking about the kind of service of the Professional Employer Organization (PEO) is the most important aspect. Therefore, you should ask the following to the PEO you’re considering:
- Do you offer a customized service plan?
- Is the service completely scalable?
- Can I add or remove services as needed?
- Do you offer a service package suited for small businesses or startups?
- What is the range of benefits you offer?
- Are your plans flexible?
- Are there any hidden fees?
4.1 PEO services
A PEO offers a comprehensive service aimed to help your business have a relief with administrative burden. Therefore, it takes care of basic human resource tasks. Although there are several services, you should ask the PEO which one they offer and it should be completely clear.
Some of the most common PEO services that are great for your business are the following:
- Administration and management of benefits
- Compliance with government and authorities
- Processing and administration of your payroll
- Recruitment processes
- Safety programs
- Tax filing, management and compliance
- Training and development
- Workers’ compensations
- Management of employment issues
4.2 Why do you need a customized service?
Since the PEO handles several areas of your business, you should look for a provider that understands your needs. It’s important to look for a PEO that has a dedicated team of experts that can assess your requirements.
Once you express your request, the PEO can offer you a comprehensive service that will be the perfect solution for your business. This way you ensure you get the most out of your business relationship. Hence, your organization will have an outstanding performance in terms of HR, payroll, benefits and risk management.
5. Why should you consider a SLA when working with a PEO?
Since a Professional Employer Organization (PEO) offers a service for your business you should see if they’re willing to write an SLA. Also known as Service Level Agreement, it’s an important document that specifies the scope of the service and the responsibilities of each party.
What is the content of an SLA? Let’s observe the following:
- Services provided
- Scope of the PEO in terms of assistance, consulting and guidance
- Responsibilities of each party entering the agreement
- Provisions to cancel the term of the contract
As you can see, it’s a crucial document that drives the entire relationship. Therefore, if the PEO doesn’t offer it, you have to look for a provider that does it. It’s essential to look for a PEO that offers an SLA because this will help your team and will set the expectations.
6. What client and professional references do the PEO have?
An important aspect to consider when selecting a Professional Employer Organization (PEO) is the references. You should look for client and professional references before partnering with the service firm.
6.1 References for a PEO
Keep in mind that the Top 10 PEO companies are those that have been offering their service for longer time. Stay away from those PEOs that don’t have an established track.
Some of the factor you should consider in this matter are the following:
- Check if the PEO has worked with companies in your industry
- Ask if they have managed organizations like yours in terms or company size or specific goals
- If the PEO has a website check the reviews leaved by former clients
- Check the PEO’s social media profiles so you can read more about them and see their brand
- If possible, speak to former customers or partners to have an outside perspective
If you carry out this background research you’re going to be able to verify the information you’ve gathered. Hence, it’s important to get another opinion regarding the PEO you’ve been considering.
3.2 Accreditations and performance
Since PEOs are a highly regulated industry, there’s another important aspect you should take into account. You should check for their accreditations to ensure they’re a trustworthy firm. Some of the considerations you have to look for are the following:
- Check if the PEO is member of an association
- Review the PEO’s certifications
- Check the PEO’s performance and examine its auditing, if possible
As there are Professional employer organization pros and cons you should look for a service provider that has a good reputation.
7. Why is Connect Resources your best option for PEO services?
Once you know the essential aspects you should look for in a PEO you may be wondering which agency could be the best one for you. Here in Connect Resources we can be your best ally. Our team of specialists will assist you in each HR task of your business.
We can provide you a comprehensive service that fits your needs. Our HR experts will take care of everything while you focus on your core activities. We have been assisting several companies in a variety of industries so we can help you.
Would you like to contact Connect Resources for PEO services? You can call at +971 433 166 88 or send an email to [email protected], and you’ll talk to one of their representatives that will gladly answer all of your questions.