Once you make the decision to work with a PEO broker, it's important to obtain pertinent information about the individual you are considering before actually making a commitment. Here are three essential questions that you should ask any PEO broker you might want to hire.
1. Have you worked directly for a PEO and for how long?
Unfortunately, it is possible to run into people calling themselves PEO brokers when all they have is some surface information related to this field. Typically, they have never actually worked as a PEO broker or specialist, so they don't understand the billing at all.
Knowing how long they've worked at a PEO can give you an indication of how good they are. For example, if the people you are looking at have only been in the field for approximately six months or they were fired, then they probably don't have good experience. If you check their LinkedIn profile, you can see just how long they've worked there, giving you a clear idea of the truthfulness of their statements.
2. Which PEO have you worked for?
You could trust your business to the wrong person if you don't find out enough background information. Since the type of PEO they worked for also provides an indication of how good they are, make sure that you ask. Do they work for a national company or a small organization?
Inexperienced PEO brokers don't understand the numbers, including the administrative fees, the hidden costs in higher SUTA, higher than market workers' compensation, how to lay out your current benefits plan side by side with a PEO's options. You want someone who knows how to negotiate from the beginning.
3. Are you a Licensed life & Health insurance agent?
In more than 50% of the cases, the driver to move either to or from a PEO is medical insurance. Because of this you want a licensed agent to show you the various plan designs, perform competitive analysis through spreadsheets and cost comparisons. Using an unlicensed individual to compare medical plans could leave you with large loopholes in your medical coverage when you need coverage the most. Additionally, it's not legal for a non licensed individual to discuss, lay out, explain medical plan designs for open market medical: UNLAWFUL ACTIVITIES BY UNLICENSED INSURANCE AGENCY PERSONNEL. If your broker is doing this and is not licensed, that should be a huge red flag.
Summary
Since you don't want to trust your business to the wrong person, get references and try to verify as much information as possible. You definitely want someone with expertise who is licensed, and the best way to find that person is to ask a lot of questions. Click here to connect with one of our highly qualified experts.
