Talking to your groups about the differences between working with you versus a PEO.
Introduction
An increasing number of American businesses are exploring Professional Employer Organizations (PEOs). Your groups are likely receiving phone calls and emails about how affordable and hassle-free PEOs are compared to other options, like your agency. The truth is, PEOs do help businesses solve some of their most time-consuming problems. But, as a user of Ease, you’re equipped to address those same problems.
In this 101 Lesson, we dive deep into why working with you and your agency is just as effective as working with a PEO. This information, which we’ve summarized in this flyer for employers, can be used to frame conversations with groups and prospects.
What is a PEO?
A PEO is a firm that provides a service under which an employer can outsource employee management tasks such as employee benefits, payroll and workers compensation, recruiting, risk/safety management, training, and development. PEOs are able to do this by hiring a client company’s employees, thus becoming the employer of record for tax and insurance purposes. This is also known as co-employment.
An increasing number of employers are exploring PEOs since the passage of the Affordable Care Act (ACA). The ACA requires any employer with more than 50 employees to offer insurance, and PEOs have taken advantage. Their status of co-employment enables them to offer better rates since health insurance premiums are determined based on number of employees and the number of those employees who use the health insurance.
What are the key differences between you and a PEO?
If your groups ask you about PEOs, we recommend clearly explaining the differences between how you and a PEO handle common benefits situations.
Below are our recommended talking points.
Talking Point 1: Technology
Technology is utilized in different ways.
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Talking Point 2: Optionality & Expertise
The way in which PEOs are constructed may allow for lower premiums and deductibles, but there is less expertise and flexibility.
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Talking Point 3: Managing Changes
It’s not easy to switch from one solution to another. It’s important for a business to think about their company not just today, but 5 to 10 years in the future. There are factors to consider from both perspectives.
Brokers | PEOs |
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Talking Point 4: The Role Of HR
Neither you, nor a PEO, truly eliminates the need for HR staff.
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We hope this lesson gives helps you the next time your groups ask about the differences between a broker and a PEO.
Don’t forget about this flyer we made for your prospects on the differences between your offering and a PEO’s offering.