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How to Achieve Higher ROI From Your PEO Partner


If you are already partnered with a professional employer service (PEO) as your HR solution, you are likely taking advantage of the relationship by offloading your day-to-day payroll, HR management, and compliance tasks to your PEO partner. However, if you’re not aware of the full scope of how PEOs help businesses, you may be unknowingly limiting the amount of value you receive for your investment.

In 2019, The National Association of Professional Employer Organizations (NAPEO) released a study citing a return on investment of 27.2% for the average PEO client, based on cost savings alone.

Pat Cleary, NAPEO’s President & CEO, stated, “We have known for some time now that using a PEO is good for a company in a variety of ways… When you put this new data on costs savings and ROI together with the data we already had on business growth, turnover, survival, and employee satisfaction, it’s clear that there really is no better value proposition than PEOs in the HR space.”

Though these savings are available, you may not be accessing the full value of your relationship. Follow these helpful strategies to achieve higher ROI from your PEO partner.


Take a close look at your organization’s hiring process, paid time off policies, handbook development, staff training, and other aspects of human resources. If your policies are dated, or your processes aren’t clearly articulated in writing, your PEO can conduct a complete audit and overhaul.

The professional HR managers at a PEO understand the myriad details involved in crafting compliant, comprehensive internal policies and procedures. Their expertise is available to you – use it to your advantage.


As your business changes – whether you’re adding new divisions, staffing up new locations, expanding into new states, or reducing your workforce – your PEO can support you before and during your business evolution.

Onboarding large groups of new employees in-state can overwhelm your internal HR teams with benefits paperwork, contract signing, and more. Conversely, reducing the number of staff employees requires swift attention to exit interviews, severance packages, and forms relating to continued health coverage.

Include your PEO in the discussion with your other advisory partners early on. Rules regarding time off, base pay, ongoing education, and other aspects of employment vary from state to state. Your PEO will help you get a head start on changes to your business structure, so you’re not left playing catch-up after the fact.


One of the benefits of using a PEO as your HR solution is offering your employees an experienced, attentive team to answer questions and provide help. Your PEO can implement regular informational sessions and distribute communications to notify employees of the many resources available to them.

From navigating paid parental leave to obtaining medical benefits for a spouse or child to filing a worker’s compensation claim, your PEO should not simply act as a background administrator for HR services – they should provide direct support to your staff.


Health benefits are a major expense for every employer. Use your PEO to discover ways to save money without reducing coverage. At its most basic, partnering with a PEO will likely reduce your benefits costs: the sheer volume of employees insured under a PEO group plan creates more bargaining power with insurance providers. Also, your PEO should compose and compare various scenarios to lower your premiums.


Are your interactions with your PEO limited to basics like changes to payroll or employment status? Reach out to your PEO at least once per month to discuss how their HR services can further support your company. Share your growth strategy and ask for help finding and onboarding new employees. Ask if there are any upcoming changes to compliance affecting your business. If your PEO partner is proactive about communicating with you, make the time to meet with them. If your PEO limits your communication or takes too long to respond to your requests, consider switching to a new partner.


If you have not spent much time using the online tools provided by your PEO, you’re overlooking a valuable source. While most PEOs offer a basic online portal, at Extensis, we’ve made deep investments into advanced technology to continuously improve all aspects of our HR solutions.

HR Cloud is our cloud-based online portal featuring tools, resources, and information for employees and managers. Employees can submit time-off requests, participate in company or compliance-related training, learn more about their health plans, and more.

Managers can process time off requests, create and manage job descriptions, update the company handbook, develop team-building programs, and conduct HR audits, among many other things.

If you’re still wrangling spreadsheets or using disparate systems for various HR functions, you’re missing out on cost-saving efficiencies.


Your PEO partner provides more than HR expertise. They offer a huge scope of practical services, tools, and advice you can put to work immediately for your organization. Subscribe to your PEO’s email newsletter, read their blogs, download their white papers, and communicate your needs.

Taking full advantage of your PEO partnership simultaneously lowers hard costs and increases your HR productivity, resulting in higher ROI.

Would you like to know more about how about how partnering with a PEO supports your business? Start a conversation with our PEO experts today.

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