Understanding the Certification Institute (CI) Designation: What It Means for Customers and Broker Partners
Quick look: Navigating risk management and workers’ compensation insurance is often complex and time-consuming, especially for small and midsized businesses. Professional employer organizations (PEOs) can manage this on employers’ behalf, but their expertise and service quality may significantly differ. Luckily, Certification Institute (CI) certification can help business leaders and brokers identify PEO partners with proven track records and a commitment to helping their customers stay safe, compliant, and supported.
Professional employer organizations (PEOs) offer many advantages to small and medium-sized businesses (SMBs), from alleviating administrative workload to providing access to competitive benefits plans. However, with so many PEOs in the market, evaluating potential providers thoroughly is important.
Whether you’re an employer looking to streamline your human resource (HR) function or a broker seeking a PEO partner to expand your portfolio, credibility and reliability are non-negotiable. That’s where Certification Institute (CI) certification comes in.
CI certification rigorously evaluates a PEO’s workers’ compensation risk management programs and commitment to following industry best practices. This credential can be a major differentiator for PEOs and a source of confidence for brokers and SMBs.
Read on to learn more about what CI certification involves, how it benefits brokers and businesses alike, and other traits to look for when choosing a dependable and trustworthy partner.
What is CI certification?
Workers’ compensation risk management is an essential component of the overall HR solution PEOs deliver to their customers. In fact, according to the National Association of Professional Employer Organizations (NAPEO), on average, businesses save 4% per employee annually on workers’ compensation costs when partnered with a PEO.
CI certification is granted by the Certification Institute, an independent organization that reviews and verifies the effectiveness of PEOs’ workers’ compensation risk management programs. To do so, the Institute assesses how well a PEO helps reduce workplace injuries, control claims costs, and improve outcomes for employees and employers.
To become certified, a PEO must undergo a comprehensive, third-party evaluation of its:
- Risk management policies and procedures
- Claims handling and safety practices
- Loss prevention strategies
- Regulatory compliance with state and federal workers’ compensation standards
- Historical claims performance and results
All PEOs are eligible for certification, and a directory of CI-certified PEOs can be found here.
The benefits of CI certification for SMBs
Workers’ compensation coverage is a top concern for many SMBs. Partnering with a CI-certified PEO shows customers that they’re supported by a proven, proactive risk management approach. Here’s a look at how CI certification positively affects employers:
Safer work environments
CI-certified PEOs can help SMBs create safer working environments, reduce on-the-job injuries, promote employee well-being, and nurture a culture prioritizing safety.
Better claims outcomes
With established claims protocols and best practices in place, PEOs with CI certification are more likely to handle claims efficiently and fairly, helping employees recover and return to work faster.
Increased cost control
Since CI-certified PEOs follow expert strategies to manage workers’ compensation losses, employers may experience fewer claims and enhanced safety performance, leading to more stable workers’ compensation costs.
Elevated productivity
Customers of a certified PEO often experience less disruption and lost productivity due to injuries. Additionally, offloading workers’ compensation and risk management to a PEO reduces their administrative burden.
Compliance confidence
Workers’ compensation laws vary by state, and failure to comply can be costly. Employers can rest assured knowing that their CI-certified PEO has the expertise and systems to help them stay compliant and avoid penalties.
The benefits of CI certification for brokers
Recommending CI-certified PEOs to clients can help brokers strengthen and deepen their book of business in the following ways:
Risk mitigation
Steering clients toward a PEO with CI certification can lower the chance of issues related to workers’ compensation claims, premium increases, or regulatory noncompliance. Additionally, CI certification involves ongoing monitoring to confirm that PEOs consistently adhere to risk management best practices.
A trusted standard
CI certification offers a reliable benchmark for evaluating a PEO’s risk management strength, making it easier for clients to compare options and vet potential partners. This independent verification also helps clients ensure the PEO follows proven best practices to reduce work-related accidents and health exposures and control workers’ compensation insurance losses.
A stronger reputation
As a broker, the strength of your reputation is closely tied to the quality of your recommendations. By suggesting CI-certified PEOs, you reinforce client confidence and demonstrate a commitment to vetted, reliable solutions. As accredited providers have demonstrated a proven process for handling claims and maintaining compliance, your clients can potentially avoid surprises or legal issues.
Added value
Aligning clients with reputable PEOs reinforces your role as a strategic advisor and empowers them to choose a partner that will prioritize their workforce safety and financial standing.
Differentiation in a competitive market
On the surface, PEOs may seem similar. However, CI certification helps distinguish which ones have gone the extra mile to prove their excellence in managing claims and sustaining safe work environments. This can be a strong selling point for any SMB, especially risk-conscious clients.
Other key PEO accreditations to consider
CI certification is a strong signal of quality, but it’s not the only one. Brokers and business leaders should also look for these credentials when evaluating a PEO partner:
- IRS Certified PEO (PEO): A designation from the IRS signaling that the PEO routinely passes strict audits and maintains tax compliance, passes rigorous financial standards, and completes routine background checks.
- Employer Services Assurance Corporation (ESAC) accreditation: Demonstrates a PEO’s “financial stability, ethical business conduct and adherence to operational standards and regulatory requirements.”
- System and Organization Controls (SOC 1) Type 2: An internationally recognized standard for internal controls over financial reporting and data security developed by the American Institute of Certified Public Accountants.
Note: Only 1% of PEOs hold CPEO, ESAC, and CI certifications, including ExtensisHR.
ExtensisHR: big-business expertise, boutique-level service
With many PEOs offering similar services, assessing credibility can be difficult. Industry certifications are a trusted indicator of quality, giving SMBs and brokers a source of truth when choosing a partner.
If you’re searching for a PEO with the trust and expertise often associated with large companies, but with the attention to detail found in smaller ones, ExtensisHR could be the perfect match.
In addition to maintaining CPEO, ESAC, and CI accreditations, these unique qualities help ExtensisHR stand out from the crowd:
- Unparalleled customer service, including dedicated, SHRM-certified HR Managers, an employee support team that picks up the phone in 10 seconds or less, and supplemental support from specialized teams in payroll, benefits, compliance, and onboarding.
- Decades of experience across the board, with our HR Services and Benefit Management teams averaging over 12 and 20 years of experience, respectively.
- Access to a knowledge base featuring numerous on-demand courses on compliance and environmental and workplace safety.
- Complimentary recruiting services, from job advertisement creation to offer letter consultations—all included in our PEO solution.
ExtensisHR’s range of qualifications and dedication to professionalism and customer service sets us apart as a reliable, high-performing PEO partner. For SMBs, that can mean fewer claims, improved safety, and more predictable costs. And for brokers, it means less risk, more trust, and a stronger reputation.
Interested in learning more about how ExtensisHR can improve your business? Explore our PEO solution, or contact us today.
