Using a Professional Employer Organization (PEO) helps deal with the administrative issues that a small or medium-sized organization would have to deal with. This way, the organization does not waste time doing tasks outside its core business. PEOs conduct such tasks as human resource consulting, payroll processing, benefits, and tax administration, among others.
Unfortunately, not all PEOs are the same. Like any other partnership, you may want to check if you are getting value from your current PEO and the shortcomings of their service delivery based on the business model and your human resource needs. Do not be stuck in a PEO that is not working for you.
Here are a few reasons why a PEO transition to another provider may be necessary.
1. You are Getting Subpar Service from the current Provider.
What level of service are you receiving from the current PEO? Is the provider taking care of the backroom operations of your business as they should? Here are some signs that you may not be getting the best services from your current PEO.
- You have a hard time contacting the right person in the PEO.
- Not getting a dedicated service based on your staffing needs.
- Receiving essential services, such as payroll processing, late, or your taxes are not paid on time.
- Always having problems with your employee benefits service providers, such as insurance providers.
- When you have discussed the poor service and the provider seems not to improve.
The reason why you hired a PEO in the first place is to cater to such needs. If the relationship with the current PEO is not productive and positive, it may be time to go for another one.
2. You Are Working with a Non-Local PEO
Working with a service provider with offices in the same state as your business has several benefits. First, there are subtle differences in state laws on employment and taxation. You want somebody that can ensure compliance with these laws.
Secondly, a local PEO enhances the relationship with your business and employees as there are regular interactions with the organization in the normal conduct of business. Besides, the PEO representatives can attend your enrolment meetings and orientation programs for new employees. They can also respond quickly to your questions and offer workable solutions based on your immediate environment. Check if the company has offices and other clients in your locality before making the switch.
3. There Is No Return on Investment
Most organizations hire a PEO to increase their profitability, lower employee turnover and enhance productivity. It also helps them maximize employee benefits at the lowest possible cost. Therefore, this is a relationship based on value.
Many businesses find it expensive to hire staff to do the tasks they outsource to a PEO. As a result, they expect to get good value for the money they paid to the PEO. However, if the services are not worth the amount you are paying for them, such as being too low, too expensive, lacking some basic features, or having issues with the actual delivery, it may be time that you switched to a new PEO.
4. They are Not the Right Fit
Is the service you are getting right for your business? Is the current deal catering to your new staffing needs since the company scaled its operations? Are you receiving the quality and level of support you would naturally expect from the service provider?
It is expected that a PEO will provide services tailored to your needs. Needs evolve as the business grows or new challenges set in. The PEO must fine-tune the services based on changing needs. Unfortunately, some packages are rigid and do not respond to your new needs. If you are stuck in such a relationship, it may be time to transition to a provider that actually offers value for money.
5. You Need to Embrace Technology
As businesses evolve, automation becomes a necessity. Otherwise, you will have to contend with mistakes and delays, which often lead to legal consequences and higher operating costs. When it comes to staffing and employee management, several innovative technologies can make your work easier.
You should consider a technology-savvy PEO to handle your staffing needs. It should provide you with a platform that makes it easy to complete various staffing-related functions as you do your daily work. However, if the service provider does not embrace technology, it may be time that you jump ship with a provider that does.
In the same breath, check what third-party additions you can integrate with whatever platform the PEO offers. It facilitates communication with them as you complete various tasks such as accounting, payroll processing, and employee assistance programs.
6. Poor Communication and Unavailability
What are the service provider's preferred communication methods? Are they available via email, in-person, or instant messaging platforms? Is communication working for your organization? What needs to be changed? If the communication is poor, you will not likely make any headway as a business. Consider switching to a better provider.
Is the service provider available when you need them? Do you have to wait for them to deal with immediate problems in service delivery? Does their schedule fit your business's running times? Do you need support during weekends and off-business hours, but it is not available? If your schedule and the support you require are unavailable when you need them, it may be time to switch to a provider that offers one.
So, where do you start?
Leaving a PEO takes time, planning, and effort. However, a good service provider will help with the onboarding process to ensure that your services are not affected by the switch. Ensure that the service provider you pick has the benefits that you lacked in the earlier one.
ScalePEO offers a wide range of HR services, including benefits, compliance services, payroll, and human resource management, all packaged into one service. We tailor the services to meet your unique business model and staffing needs. Grow your business today by switching to our platform today.