When a small business owner turns to someone for help with their HR challenges, they need to have confidence in their new partner. If you partner with a PEO, you trust them to handle some of the most sensitive information your company manages: your employee’s personal information.
The need for trust in your PEO partner is the primary reason it is so important for a PEO to have audited financial statements. You need to be able to believe that your partner is keeping up with the best accounting practices and can give some insight into the likelihood that it will remain financially solvent during the tenure of your partnership.
If you need help finding a PEO partner you can trust, NetPEO is ready to assist you. Our PEO brokers rely on a highly vetted network of trusted partners to provide businesses just like yours with the HR outsourcing solutions they need. To schedule your free initial needs analysis, call us today at (678) 376-1212.
Financial Best Practices for Trust and Transparency
When you work with another company, you should feel confident that the company adheres to its industry’s best practices. When it comes to best practices within the PEO industry, the National Association of Professional Employer Organizations (NAPEO) recommends that every organization has an independent financial audit performed by a CPA.
Having audited financial statements allows a PEO to show its partners that it is well managed. An audit by an independent CPA will show that the company is following the generally accepted accounting principles (GAAP) for good fiscal management.
Likewise, audited financial statements may be required by state law. Depending on the state your business is in, your PEO may not be able to be licensed or registered without independently audited financial statements.
Trusting Your PEO Partner
While they are a step in the right direction, independently audited financial statements shouldn’t be the only thing you use to determine whether your potential PEO partner is reliable. Financial failures and fraud can still occur at businesses that receive independent audits.
In addition to asking to see their audited financial statements, you should also ask for:
- A meeting with all the representatives that you’ll be working with
- Experience of the organization’s staff, particularly at the most senior levels
- How long the organization has been in operation
- Information pertaining to the training and certification requirements of its employees
- Their certification with Certification Institute for their risk management practices
- How well they retain their internal staff
- How well the organization keeps its clients
- Contacts with their current clients
- Average duration of their client relationships
- Whether they have (or are seeking) Certified Professional Employer Organization (CPEO) status
- Ratio of employees to clients
These factors can greatly impact how well your PEO partner operates. Reticence to provide this information may be a sign that your potential partner has something to hide.
At NetPEO, we want to make sure that you have all the information you need before deciding on a PEO partner. That’s why we work with you every step of the way, from helping you determine your business needs, to arranging a meeting with the organizations you’ll work alongside. We’ll even work with you to solve any issues that may arise during your partnership.
Other Considerations When Choosing a PEO Partner
While trust in your partner is important, so is the quality and selection of the services they provide. Not every PEO will have the services and benefits that fit with your company. When deciding on a PEO partner, you should also consider:
- What HR outsourcing services they offer
- What technology they work with and/or provide your company
- Employee benefit costs
- Options for customizing benefits packages
- How well you and your employees can access your own data (i.e., self-service options)
- Their payment structure (flat fee for each employee vs. flat percentage of payroll) and the total costs you’ll incur
NetPEO’s Commitment to Customer Satisfaction
Navigating the PEO industry can be a tricky proposition for small business owners without a background in the field. Fortunately, you don’t have to handle your search alone.
At NetPEO, our brokers have years of experience guiding companies just like yours to the right PEO partners. We help you assess what your business needs are and what services are most likely to help your business grow.
As a PEO brokerage, we’re in business to help you. We vet our service providers to make sure that you’re working with experts in the HR outsourcing industry. Our dedication to clients has earned us an industry-leading 100% client satisfaction rating.
To experience the NetPEO difference for yourself, call us today at (678) 376-1212.