Confessions of PEO Broker – Pt. 1

In the intricate world of Professional Employer Organizations (PEOs), a PEO broker’s journey is welcomed with a tapestry of experiences, challenges, and triumphs. As the popularity of a PEO starts to grow throughout the country, we must educate businesses of all their options instead of just some of them. The purpose of this blog series is to provide insight into situations that occur during the quoting process, decode complexities that arise, and of course, the results, among other topics. As a PEO broker, my mission is to create a relationship between the business and the PEO. Here, I share the confessions of those initial forays into the dynamic realm of PEO brokerage through my experiences.

Out of respect to the PEO partnerships and clients that I have, I will not be providing specific names or companies.

Breaking Free from the Misconceptions

In the realm of business, the term “PEO” has occasionally carried a subtle but persistent negative connotation. Perhaps it’s the misconception that a Professional Employer Organization (PEO) implies relinquishing control of your business or adding a layer of complexity. However, I think you would be surprised to know that the industry has grown and adapted since the idea was initially created. Imagine I told you that I could sell you a universal tool, this unique tool could handle the same tasks as every other tool in the toolbox, it will cut the time and energy it takes to do those tasks in half, and you would never need to buy another tool again. Would you buy it? I truthfully think you would be insane not to. That is what a PEO is to a business. It empowers a business instead of restricting them!

Sharpest Tool in the Shed

Navigating the complexities of running a business is no easy feat. If it were a walk in the park, “corporate” would be a word that would be forever lost in the dictionary. Think about how daunting it is to manage the responsibilities and relationships involved with these aspects of the business: payroll, workers compensation insurance, employee benefits, taxes, 401(k)s, recruiting, compliance, etc. Now, consolidate all of that into one vendor, one payment, and one relationship. But wait… there’s more.

At its core, a PEO is a powerhouse of support, addressing critical aspects of business management. To be clear, the synergy of a partnership is not just a transaction; it’s a shared commitment. If you think a PEO will be handling all your responsibilities, you are mistaken. From payroll processing and benefits administration to regulatory compliance and risk management, PEOs function as an extension of a company’s HR department. This allows you as a business owner or employee to focus on bringing value to the business rather than spending time on necessary tasks that are required by good ole Uncle Sam. Just when you think it can get any better… there’s more!

Embracing this concept isn’t just a strategic move; it’s a financial one in most cases. If any PEO is pitching you on savings, you should know that they will never actually know unless, as a business, you have provided the requested documents to move forward with a quote. Although that is true, even if it doesn’t save you money, I can assure you that it will save you time. If there is anything I have learned from joining the workforce, time = money. I will get into more detail about how costs are saved in future blogs, but just to be clear, a PEO will provide a predictable cost structure, enabling businesses to allocate resources more effectively, and focus on their core competencies.