The latest statistics from NAPEO (The National Association of Professional Employer Organizations) show that roughly 15% of all employers with between 10 and 99 employees use PEOs to meet their human resources and accounting needs. This represents more than 175,000 companies and businesses. But when choosing the right PEO, it is often necessary to work with a PEO brokerage service like NetPEO.
Brokers work with client businesses to create a master plan of services they need in the HR and accounting departments. While most companies will find that the best option is to outsource their entire HR and accounting departments to a PEO, some may only wish to use a PEO for select services. Luckily, NetPEO allows client business owners to select the services they want to use on an a la carte basis so that no business owner has to be uncomfortable paying for services they do not want.
Creating a Plan for Your Business
The first step in connecting a client company owner to a PEO is to create a comprehensive plan of the needs of that business. This will allow the broker to pair the client with a PEO that can service those exact needs. For example, one of the issues that a brokerage service like NetPEO will look at is the services that the company requires.
Services Offered By PEOs
PEOs in our nationwide network offer many varying services to client businesses. These can range from mundane paperwork issues to the development of policies. Examples of the services provided by our partner PEOs include:
- Payroll administration
- Recruitment strategies
- Development of employee harassment policies
- Risk mitigation
- Compliance with federal and state labor regulations
- Workers’ compensation claims
These are necessary services for businesses, but having a full-time, in-house staff can become far too expensive for new and small business owners. To save money and time, it is often best to sign a co-employment agreement with a PEO so that they can begin providing those services to you at a lower rate.
Another way that a PEO broker like NetPEO can help is by finding a PEO that suits the payment structure that best fits your company. Primarily, there are two payment methods used by PEOs, and a business may be partial to either one.
- Percentage of Payroll: this is often useful to companies that have a lot of low-wage workers or that want a payment plan that will grow as their business grows.
- Flat Rate Per-Employee-Per-Month: this payment method is more useful to companies with few workers on higher wages or that want a more consistent plan for yearly budgeting purposes.
By using a PEO broker, you can find a PEO that offers services that you need with the payment structure that works best for your budget. Less guesswork is involved when you align yourself with the industry veterans at NetPEO and the more than 200 years of combined industry experience held by our nationwide network of partner PEOs.
NetPEO Can Help You Through the Co-Employment Arrangement
One of the key distinguishing aspects of using a PEO is the co-employment relationship. Though the term may sound strange to business owners, co-employment comes with little to no risk and many benefits. In simple terms, co-employment allows the PEO to become a legal employer of your employees so that it can administer the services reserved to an employer, such as payroll management and the provision and administration of employee benefits packages.
Business owners do not lose control of their company in any way when engaged in a co-employment relationship. They still have the final say in hiring and firing decisions; they dictate the services that the PEO performs; they maintain control over the direction of their business. In fact, co-employment comes with benefits like better, cheaper employee benefits packages. Since a PEO is a co-employer with all of its client businesses, its pool of employees is much larger than any single company’s. This means that it has better bargaining power to attain high-tier benefits and can spread the cost of those benefits out over a larger group of individuals, lowering the individual cost.
Unlike many other brokerage services, NetPEO sticks with you throughout the duration of your company’s co-employment agreement with our partner PEO. We regularly contact you to learn about any issues you may have and solve them, showing our dedication to client satisfaction.
Speak With a Trustworthy PEO Broker Today
At NetPEO, we have achieved a 95% client retention rate and all of our clients say that they are either satisfied or extremely satisfied with our PEOs’ services. These statistics put us at the top of the PEO brokerage industry.
If you are a business owner, particularly with between five and 100 employees, finding a PEO may be vital to the success of your company. Get in touch with one of our representatives today by calling us at (678) 376-1212 or filling out the form on our contact page. We will get back to you within 48 hours and begin discussing a service plan for your business.