A PEO is Professional Employer Organization. This concept can incorporate all the normal features of employee payroll, work comp and benefits under one umbrella. Often, they are marketed as streamlined solutions to manage an Employer’s Human Resource (HR) needs. While we disagree with the ability of a PEO to remove HR managerial duties, in some instances a PEO may help an employer accomplish cash flow and insurance cost objectives.
However, nothing is without a cost. Two important considerations when looking at a PEO for your organization…..
First, PEO concepts do possess large fee structures that are often misrepresented at the time of sale.
Second, in some cases, placing an employer group into a PEO may cause the group to be removed from having creditable loss run data for future marketing uses. This may be a good or bad thing depending on the specific risks within a group.
As the PEO market stabilizes, Assurance ltd. works alongside the employer to find the best PEO to fit their needs. We presently have relationships with over ten national and regional PEO markets on a wholesale basis. We are happy to compare these options alongside your current PEO vendor. Contact us with any questions regarding how a PEO might or might not work for your organization.
Identify your Benefit Spend:
We are happy to implement SimplifyACA to analyze your current PEO to expose its current total FEE exposure.