Choosing between a PEO broker and a PEO salesperson is an important decision. Which one is better for your company? How do you decide?
Once you begin your search, you are going to discover that there are a lot of PEO salespeople and PEO brokers out there. You'll have many choices, but you can narrow it down by deciding which type is going to offer better service for your needs.
Expertise
With both PEO salespeople and PEO brokers, you can get someone who is inexperienced, which wouldn't be good for your company. Perhaps they are new to this field, or maybe, they've been there for a while but just don't understand the intricacies of the process. Find out if they have the background needed to do the job, and whether or not they are credible and reputable. Most importantly since medical benefits are a large driver for clients make sure that you use a Licensed Life & Health Agent. They are the only people that are able to spreadsheet and explain open market medical benefits and complete a comparison. 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 an unlicensed individual is doing this, it should be a large red flag to question how.
Differences between the PEO Salesperson and Broker
PEO salespeople refer you to their company, because that is their job. It is what they were hired to do. They are not going to refer you to 5 different companies, provide recommendations, and let you decide which one to pick. They are simply going to give you one choice. It's the PEO salesperson's job to meet a quota so they may try to fit a square peg in a round hole.
PEO brokers understand the nuances of your company from a needs analysis aspect, and they are familiar with the nuances of the PEOs that they recommend. As a result, they can match your company with a PEO that is a good fit.
Similarities between the PEO Salesperson and Broker
If you are comparing two qualified individuals, one of whom is a PEO broker and the other is a PEO salesperson, then both should have exceptional industry knowledge.
Does It Make Sense to Use a PEO Broker Who Works with a PEO Salesperson?
If a PEO broker pairs up with a salesperson, he can get the answer to any of the questions that he doesn't already have. When a PEO broker partners up with a salesperson, it doesn't cost you any more money because they split the commission.
The Downside of Choosing a PEO Salesperson over a PEO Broker
A salesperson takes you down a narrow path with one choice at the end of it. If you choose a PEO broker who has a broad focus of the market, he will give you multiple options and recommend the best one for you. In many cases the salesperson's commission will be paid in full within 60 days of on boarding a client - that's not a lot of incentive to keep you happy. Most brokers get paid a small amount ongoing as long as your company remains a client. This is incentive for the broker to keep you and your company happy. A good PEO broker will more than offset his commission if he is doing a good job, which is exactly what he is trained to do.
