Quick look: A broker-friendly PEO may sound contradictory since it’s historically been assumed the two are in competition with each other. However, not all PEOs are the same. To serve clients better as well as maintain a strong book of business, many brokers have realized finding the right PEO partner makes all the difference.
Professional employer organizations (PEOs) provide comprehensive HR solutions, including payroll, benefits, and risk management services, freeing up time and resources for businesses as they grow. Due to the nature of this work, there’s been an ongoing misunderstanding regarding the broker/PEO relationship.
Concerns about competition have led to several misconceptions. When, in fact, brokers who expand their network to connect with a PEO automatically provide their clients with added value. With significant changes in the industry, especially over the past few years, the way brokers and PEOs work together needed to change as well. Now, there’s a greater focus on collaboration and customization; ultimately, serving as a benefit to all.
When decisions are based on broad misconceptions, it can lead to missed opportunities with no place to grow. But when the truth is revealed, it’s clear how much a broker-PEO partnership maximizes the potential. Here are five common myths debunked and evidence of how PEO brokers gain an advantage over the competition.
Myth #1: All PEOs are the same
PEOs can choose to sell HR services directly to business owners, implement a broker-only model, or implement a combination of the two. In addition to these differences, big-box PEOs often don’t deliver the same level of service a PEO like ExtensisHR has to offer.
A big-box PEO focuses on increasing the quantity of clients, which inhibits their ability to provide personalized customer responses and solutions. Though the amount or level of services may be competitive, it may not be the most viable solution for all SMBs.
Whereas, a PEO like ExtensisHR focuses on delivering a tailored approach. With a dedicated team of HR experts working directly with each client, it gives everyone a chance to collaborate and strategize what’s best for growth rather than relying on a catch-all solution. In order to save time and money, while also giving employees what they really want, understanding their unique needs is essential. With this heightened level of attention, brokers can feel confident knowing their clients are being prioritized and the strength of their relationship is being maintained.
Myth #2: PEOs take business away from brokers
A broker-friendly PEO is interested in helping brokers build their business, not take it away. Instead of directly selling HR solutions to SMBs, brokers and PEOs work together to support current clients and expand a broker’s portfolio at the same time.
At ExtensisHR, broker commissions are competitive and Broker of Record letters aren’t recognized, which allows a broker-client engagement to remain intact. Not only does this protect their portfolio, it also gives brokers more time to concentrate on client advocacy while administrative responsibilities are handled by the PEO.
Myth #3: PEOs can’t accommodate small businesses
Outsourcing HR services isn’t only limited to large companies. Since HR is a full-time responsibility, a PEO solution is particularly helpful for SMB leaders. It lets them focus on revenue strategies while delegating HR tasks to an experienced team of experts.
Additionally, through a PEO, SMBs have access to premium-level benefits often reserved for bigger companies, making them stand out in recruiting and retention efforts. And with HR, benefit, and risk and compliance services all tailored to meet each company’s specific needs, it empowers businesses to grow and succeed.
Myth #4: All PEOs maintain the same certification
Not all PEOs have the same industry credentials, which can leave brokers and their clients vulnerable to financial liability and unqualified for tax benefits. However, PEO brokers can feel confident when working with ExtensisHR.
ExtensisHR is part of the 1% of PEOs holding an exclusive trifecta of industry credentials: ESAC Accreditation, Certification Institute (CI) for Workers’ Compensation and Risk Management, and is a IRS Certified PEO (CPEO). These distinctions offer an advanced level of partnership credibility when introducing SMBs to a PEO solution.
Myth #5: PEOs aren’t actively part of the employee experience
Outsourcing can feel impersonal when delivering services and nothing more. Though this may apply to some big-box PEO models, ExtensisHR is driven by a service-led, performance-driven approach for brokers and their clients. Understanding and improving the employee experience is part of the level of service involved. This is achieved by tailoring employee benefits, streamlining processes, and implementing advanced technology, all designed to optimize the overall experience.
HR services also include recruiting management, typically offered a la carte by other PEOs, but an automatic part of ExtensisHR’s all-inclusive solution. This added value is significant as workforce demands increase and the talent pool continues to be increasingly competitive. Recruiting and retention strategies must be customized in order to attract and prioritize the best.
Discover the benefits of a broker-friendly partnership
Entering a partnership of any kind requires trust and transparency, which PEO brokers can rely on when working with ExtensisHR. For over 25 years, brokers and SMB leaders have relied on our expertise and cost-effective capabilities. And with a net promoter score (NPS) more than doubling the average of outsourced HR providers, the level of client satisfaction speaks for itself.
The world of HR is constantly evolving and requires a team of experts who is reliable and flexible to accommodate the nuances and new demands necessary to keep businesses compliant and successful long-term. As more brokers and SMBs are becoming aware of the benefits of working with a PEO, the truth behind the misconceptions are shining through.
By simplifying HR solutions and offering full-time support, we protect brokers’ book of business and champion their growth through our services. Collaboration is impactful when everyone is focused on the same goal.
Learn more how our broker-friendly PEO model can help you grow. Contact ExtensisHR today.