Ignite Business Growth in 2026: 4 Ways PEO Helps Brokers Succeed

Quick look: 2026 is shaping up to be a pivotal year for employers and a powerful opportunity for brokers. As workforce demands, compliance requirements, and technology expectations continue to rise, brokers are uniquely positioned to guide clients toward the right professional employer organization (PEO) and deliver a smart, scalable HR strategy.

In 2026, small and midsized businesses (SMBs) are facing more complex challenges than ever before, from planning how to responsibly adopt artificial intelligence (AI) to staying ahead of expanding compliance considerations.

Navigating these changes takes time and resources that smaller organizations may not have to spare. This is where brokers can stand out by introducing clients to the value of a professional employer organization (PEO).

As the business landscape continues to evolve, here are four ways expanding your network to include a PEO partnership can help you differentiate your services from competitors and ignite and retain business:

1. Tailor your portfolio for today’s business challenges

Partnering with a PEO has become a strategic advantage for brokers looking to expand their offerings. PEOs deliver a comprehensive HR infrastructure for SMBs that need support with areas like payroll, benefits, compliance, and recruiting. Essentially, PEOs manage a company’s HR responsibilities so business leaders can focus on more strategic goals.

For instance, reports show that roughly 40% of employees plan to explore new job opportunities in 2026. A PEO can help SMBs address this trend in two ways: by offering recruiting services to find and hire top talent, and through access to competitive, Fortune 500-level benefits to reduce their own internal churn. By pairing clients with a PEO, you can show them they can play an active role and make the most of market fluctuations.

2. Reinforce your role as a trusted advisor

Maintaining a partnership with a PEO is a valuable differentiator and secures your position as a full-spectrum advisor. By introducing a PEO when it’s the right fit, you show a holistic understanding of SMB challenges, such as rising benefit costs, compliance complexity, and talent retention, and demonstrate your role as a strategic consultant that sees the big picture.

Brokers who guide clients through PEO options also deepen relationships and increase long-term retention by having a seat at the table during core business decisions. Presenting a PEO as one of several viable models reinforces objectivity and trust, while helping SMBs scale responsibly.

3. Help SMBs evaluate and mitigate risks

New employment laws are introduced every year, and 2026 is no different. In fact, on January 1, 2026 alone, over 50 new requirements took effect.

These updates require proactive planning to avoid noncompliance, and staying informed and planning necessary operational changes can strain a small business. You can help your clients save time and avoid penalties by aligning them with a PEO’s risk and compliance team, which specializes in keeping them compliant with federal, state, and local legislation.

4. Unlock access to the latest technology

Through PEO partnerships, brokers help SMBs tap into HR and AI technology that make running a business easier, without incurring additional costs or planning a deployment on their own.

PEOs often provide platforms for payroll, benefits, compliance, recruiting, and some even offer optional access to employee engagement and performance management tools. Many also weave cutting-edge technology into their own operations, such as supplementing their human-led recruiting efforts with AI-supported hiring programs that screen candidates. They also help companies establish clear usage policies and best practices, ensuring applications are used responsible and legally.

Between June 2023 and January 2025, the share of HR leaders who actively planned or had already deployed AI tools increased by 42%. By connecting clients to the latest technology, brokers can help them keep up with industry peers, sharpen their competitive edge, and manage their workforce more effectively.

Brokers and PEOs: A true win-win partnership

SMB leaders are always looking for ways reduce administrative burden and operate more efficiently. Delegating HR to a PEO’s team of experts creates immediate relief.

As a PEO broker well-versed in your clients’ specific needs, you eliminate the time, research, and guesswork out of finding the right solution. And by pairing clients with the right PEO, you remain involved in additional aspects of their growth beyond benefits.

But not every PEO is the same, and recommending the right partner is important to maintain your reputation. Here’s what distinguishes ExtensisHR from other providers:

• A commitment to service: Each client receives a dedicated Account Manager, HR Business Partner, Payroll Specialist, and Implementation Manager. Plus, worksite employees receive access to our Employee Solution Center, which answers calls in under 15 seconds and solves 90% of cases the same day.
• Complimentary recruiting: Full-cycle hiring assistance, powered by human experts and supplemental AI tools, at no additional cost.
• Boutique-style customization: HR solutions and benefits packages that evolve alongside your clients.
• Proven customer satisfaction: We boast a net promoter score (NPS) of 86 (compared to the industry average of 48), and a 93% customer retention rate.
• Industry-leading accreditations: Including IRS Certified PEO, Employer Services Assurance Corporation (ESAC), and SOC 1 Type 2.
• Well-rounded technology suite: Our mobile-friendly Work Anywhere® platform enables SMBs to manage HR with ease, and clients also have the option to implement 15Five, an AI-powered performance management program.

2026 is full of change. And with the right PEO partner on your side, you can transform it into opportunity, both for your clients and your own book of business.

We’re here to help you and your clients succeed in 2026 and in the years to come. Explore how we’ve partnered with other leading brokers, or contact us today to learn more about a partnership.