You may have some clients who are so tired of human resources issues that they want to outsource some or all of their employees.
One way to give those clients administrative relief may be to hook them up with a good professional employer organization, a company that will act as the employer for your clients employees.
But finding the right “co-employer” is easier said than done. What your client needs is the PEO equivalent of a low-price, off-the-rack suit that fits as if it were custom-tailored. Otherwise, the results could be disastrous.
Here are some ways to separate the wheat from the chaff.
1. Make sure the price makes sense.
In the PEO market, a price that looks too good to be true probably is too good to be true. A PEO that advertises an unrealistically low initial rate may up its rates 6 months down the road.
2. Find a PEO with a benefits package designed especially for workers who resemble your clients current workers.
A PEO that mixes your clients healthy, well-behaved bookkeepers and secretaries with other employers hard-living riffraff almost guarantees that your clients health insurance rates and workers comp rates will skyrocket.
Along the same lines, even something that sounds as if it ought to be pretty basic, such as payroll, ends up working much differently for some types of workers than for others. Payroll for a successful sales rep will not be the same as payroll for a factory worker who earns the minimum wage.
3. Demand a solid benefits package.
To make the cut, PEO candidates should offer a benefits package that:
–Provides coverage for new hires soon after they start working.