Signs Your SMB Client Needs a New PEO Partner
Quick look: PEO awareness and subsequent partnerships have increased over the past few years as brokers and their clients look for fresh HR and benefit strategies to keep them competitive. However, many organizations have begun to realize not all PEOs offer the same level of support. Though the services may be similar, there are tell-tale signs it may be time to make a switch.
Small- and medium-sized businesses (SMBs) look to brokers for advisory expertise, which often goes beyond securing the best benefits. The need has extended to finding a fully managed HR solution, complete with risk and compliance services, as well as recruiting and retention assistance, to help clients reach their growth goals.
Therefore, it’s no surprise the exploration of working with a professional employer organization (PEO) has spiked in popularity. The National Association of Professional Employer Organizations (NAPEO) reports PEO awareness by decision-makers rose by 65% in 2022, reflecting a 44% increase since it first started tracking its growth in 2018.
Connecting SMB clients to a PEO partner has become a competitive advantage for brokers, allowing them to increase their offerings and protect their book of business. However, not all PEOs are the same.
For clients already attached to a PEO, gauge their satisfaction by asking questions and listening to concerns they may have regarding their benefit plans and overall experience. The right PEO fit can be a game-changer for a business, and the wrong one can result in missed opportunities.
As clients’ demands continue to evolve, be on the lookout for common warning signs which could determine if transitioning to a new PEO partner is best for their future.
Poor customer service
Big-box PEOs tend to focus on quantity rather than quality, leaving them strapped for time in giving clients the personalized attention they need to succeed. Slow and automated responses, and generic solutions can all be signs it’s time to move on to a more dedicated partner.
Prioritizing client needs with a friendly, responsive approach is what allows SMBs to streamline their operations and collaborate effectively so they can grow. If there are continual complaints of a client’s current PEO’s non-responsiveness, an increase in turnover, or other operational missteps, it could be time to look elsewhere.
What ExtensisHR offers: With a people-centric approach, ExtensisHR’s team of HR professionals understands the importance of delivering customized HR solutions, both on a day-to-day basis and on a larger, strategy-driven scale. SMB clients can expect a single point of contact through a dedicated SHRM-certified HR manager, as well as a 10-second response time and 97% same-day resolution rate from its Employee Solution Center, both of which prioritize proactive problem-solving and exceptional customer service.
Limited customization
Though PEOs cover a wide range of HR and benefit services, sometimes the offerings follow a one-size-fits-all model and don’t align with the client’s specific demands.
This can become costly due to the non-use of benefits and doesn’t make employees feel confident their demands are being heard. With five generations of employees making up today’s workforce, applying a catch-all solution results in a lack of employee engagement and satisfaction which ultimately affects a company’s bottom line.
Whereas, a PEO partner offering tailored services is tuned into a SMB’s changing needs and can provide better support for the client’s unique business goals and challenges. Ultimately, this promotes higher employee retention and greater company growth.
What ExtensisHR offers: Personalization is a distinctive part of ExtensisHR’s all-inclusive PEO solution. HR and benefit packages are designed to fit each client’s specific requirements while allowing for flexibility to adjust as those needs change. Plus, a human connection versus an automated response makes clients feel prioritized and assured their problems will be solved quickly.
Lack of transparency
The trust of a PEO partner is paramount as HR is one of the foundational parts of a successful business. When fees are unclear and questionable billing practices are in place, it can quickly cause mistrust and financial strain, which can be especially debilitating to SMBs. Also, confusion about which services and support are included (and which cost extra) can feel misleading and frustrating.
What ExtensisHR offers: Clear pricing and communication restore confidence and financial predictability for SMB leaders. ExtensisHR explicitly outlines its services and provides a human-centric approach so broker clients feel well taken care of throughout their entire experience. Furthermore, recruiting and retention services are complimentary, giving an additional edge to their competitive value without having to incur an additional cost.
Outdated technology and tools
One of the greatest advantages of working with a PEO is streamlining HR and benefit administration to save time, costs, and stress. However, a PEO working with outdated technology can limit a client’s ability to effectively manage HR information and gain the insights they need to improve and grow.
If a PEO is not investing in modern tools and technology to complement its service model, it can make managing compliance difficult, putting SMBs at risk. Furthermore, as the industry continues to move toward mobile-friendly work environments, PEOs must adapt accordingly and offer platforms which allow SMBs to access their accounts at their convenience.
What ExtensisHR offers: Through its centralized Work Anywhere® platform, ExtensisHR supports clients’ ability to securely view and manage important HR tasks from anywhere, at any time. There is also access to various functions to consolidate workflows, unify reporting, and build HR sustainability.
Encourage clients to make the switch to a trusted PEO
As awareness of PEOs continues to grow, so will competitiveness. Thanks to ExtensisHR’s industry reputation brokers can feel confident when making the connection to their SMB clients. ExtensisHR maintains a 93% client retention rate and has been named among a select group of organizations with a Certified Professional Employer Organization (CPEO) status from the IRS.
Broker clients deserve a first-class experience at cost-effective pricing. From our comprehensive HR management and benefit services to our friendly and knowledgeable Employee Solution Center, our goal is to support growth and deliver results.
Learn how we help brokers gain a competitive edge through our people-first PEO solution. Contact our team of HR professionals today.
