5 Questions to Ask Before Hiring a PEO Consultant


Have you been too caught up lately? Is the workload too much to handle right now? Well, hiring a Professional Employment Organization (PEO) could be the best solution to lighten your load.  Working with a PEO company can help to alleviate the workload and distractions, and provide a significant number of additional benefits to your company and employees.

Partnering with a PEO will relieve you from many transactional HR-related responsibilities, including managing payroll and employee benefits and monitoring labor law compliance. Moreover, outsourcing tasks gives you more space and time to focus on the business’s growth and success and improves overall employee retention. Organizations that collaborate with a PEO company see about 10 to 15 percent less employee turnover.

However, it only happens when you team up with the right PEO partner. To help determine the best fit, we suggest you ask the following questions before sealing the deal.


1. What degree of support do they offer?

Will your PEO partner be available on an immediate and as-needed basis to provide help and support when you encounter an HR issue?  This is undoubtedly an important question you must ask your prospective PEO partner upfront.

In addition to this, make sure to ask if the PEO how they will handle this – will you have real-time, online support or, will you need to speak to a representative over the phone?

You should also ask if the same team will address your concerns each time, or will they deal with someone new each time?


2. What kind of technology or software does the PEO provide?

One of the many benefits of a partnership with a PEO is that you can access the latest available versions of human capital management technology tools. Make it a point to ask about the type of technology they offer and discuss the tools and programs you are already utilizing. Additionally, make sure to discuss if you have particular software or technology requirements – a good example would be their ability to tie their General Ledger software to the payroll system.


3. What kind of Employee Benefits plans do they offer?

In addition to a paycheck, employees seek out a robust benefits package when making a career choice in this day and age. Hence, employees look for a PEO that has wholesome and powerful packages to offer at the best possible rate.  The benefits package for an employer needs a selection of top-notch health and life insurance plans, a sound savings plan, as well as a vacation package.  Before making your final decision on a PEO, inquire about which carriers they partner with and the packages they can provide. This will provide insight into whether you will be able to secure a total rewards package that aligns with your employees’ expectations.


4. What’s their reputation?

What are people saying about them?  Generally, there are testimonials available on their website, or you can check Google reviews.  Or, you may simply ask them to provide referrals.  It would be best if you were specific about the types of referrals that could be meaningful to you, whether it is a company in the same industry or the same size.


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