If you’ve been with the same Professional Employer Organization (PEO) for a while, it might be time to take a fresh look at your options. While your PEO may have served you well in the past, the business landscape, compliance requirements, and PEO offerings are constantly evolving. Shopping for a new PEO every few years can help ensure you’re getting the best value, service, and benefits for your business. Here’s why:
1. Pricing and Cost Savings
PEO pricing structures change over time, and newer offerings may provide better cost efficiency. If you haven’t compared PEOs in a few years, you could be overpaying for services that are now available at a lower cost elsewhere. A competitive market means PEOs are constantly adjusting their pricing models to attract businesses like yours.
2. Better Benefits Packages
Employee benefits are one of the biggest reasons businesses partner with a PEO, and providers frequently update their plans. If you haven’t shopped around in a while, you might be missing out on better health insurance options, improved retirement plans, or additional perks like wellness programs and mental health support. Employees expect competitive benefits, and a better PEO offering can help you attract and retain top talent.
3. Technology and HR Support Upgrades
The HR and payroll technology offered by PEOs has advanced significantly in recent years. If your current provider’s platform feels outdated, switching to a PEO with a more modern, user-friendly system can streamline payroll, compliance, and employee self-service options. Improved technology means fewer administrative headaches and a better experience for both your HR team and employees.
4. Regulatory Compliance and Risk Management
Employment laws and compliance requirements are constantly changing. A PEO that was great a few years ago may not be as proactive today when it comes to keeping your business compliant. Some PEOs specialize in specific industries or have better compliance tools that can help reduce risks and protect your business from costly legal issues.
5. Service Quality and Customer Support
Not all PEOs provide the same level of customer support. If you’ve experienced slow response times, lackluster service, or impersonal interactions, it might be time to explore other providers. A PEO should act as an extension of your team, providing proactive guidance and support whenever you need it.
6. Your Business Has Changed
Your company has likely grown or evolved since you first partnered with your PEO. Whether you’ve added employees in new states, expanded into new industries, or have different HR needs, your current provider may no longer be the best fit. Evaluating other PEOs can help ensure you’re working with one that aligns with your company’s current and future goals.
7. Competitive Market Means Better Options
The PEO industry has become more competitive, leading to improved services, better technology, and more flexible pricing. If you haven’t explored your options in a while, you might be surprised at the new offerings available that could better suit your business needs.
Final Thoughts
Sticking with the same PEO for years without reevaluating your options could mean missing out on better pricing, benefits, and service. The process of shopping for a new PEO doesn’t have to be time-consuming, and the potential advantages—cost savings, improved benefits, and enhanced support—are well worth the effort.
If it’s been a few years since you last reviewed your PEO options, now is the perfect time to explore what’s out there. Your business, employees, and bottom line will thank you.