Do you enjoy the benefits of partnering with a PEO, but you aren’t sure you’re getting everything you were promised in the beginning? If you currently partner with a PEO, you know there are a wide array of benefits you gain through the partnership. When you partner with GMS, you will receive access to our experts in the fields of payroll, employee benefits, human resources, and risk management.
Making the switch to a different PEO may seem mundane, but it’s important to ensure the partnership with a new PEO is the right fit. Continue reading to learn how simple it can be to switch from one PEO to another.
Step 1 - Define Your Reasons For Switching PEOs
The most important step in switching from one PEO to another is determining the reason why you want to switch. Make a list of pros and cons of your current PEO. The types of services and support you want not only have a direct effect on which PEO is right for you but also impact the transition process.
Consider asking yourself the following questions to fully understand your reason(s) for switching.
- Are you receiving everything you were promised at the beginning of your partnership?
- What services is your current PEO offering you?
- What services do you feel are lacking (if applicable)?
- How fast do they respond to your correspondence and through what channels are they accessible - email only, phone, fax, and so forth.
- What red flags, if any, have you experienced that need to be addressed?
- How often does your HR account manager facilitate onsite visits?
- Do your employees have easy access to their payroll information?
- How flexible is your medical plan for your employees?
- Are your claims being handled properly and in a timely manner?
- How often do you review your workers' compensation rate?
Step 2 – Find The Right Fit
If you’re considering switching PEOs, you may ask yourself how beneficial it will be for your business to continue a partnership with a PEO. When determining the right PEO for your business, consider your ever-changing business needs. What are your current challenges? Do you anticipate any changes to your business that could impact which services you need?
Not all PEOs are created equal. Some are brand new to the PEO market, while others have been around for quite some time. With that said, every PEO offers different services, and some may be a better fit than others. Do your research and ask questions to grasp a better understanding of each business.
Step 3 – Cost And Value
PEOs are dedicated to helping businesses grow, so we understand the commitment involved in a partnership. However, having already worked with a PEO, you understand the value a PEO can offer your business. Most PEOs have an enrollment fee that can run up to a couple of thousand dollars for your company. Consider looking for a PEO that is transparent about pricing. You will most likely have a first meeting with each PEO you are interested in. If they aren’t upfront and honest and can’t give an explanation behind the pricing, that’s a red flag right away. Your costs of doing business may be increased unintentionally due to ineffective HR processes. Decreased productivity, high employee turnover, less impressive employee benefits, and more, are ways your ineffective HR practice could be hurting your bottom line.
Step 4 – Partnership Overview
Since you’ve gathered information about top PEOs you are interested in partnering with, it should be clear which organization you want to work with. It’s important to consider the conversation that will be had with your current PEO about parting ways and switching to another PEO. Your previous PEO may require a written notice of termination – a 30-day notice is typical. Create a plan with your team members to ensure a smooth process for the transition of services.
Your new PEO will provide you with a documented plan of what the partnership will look like. They will show you how the transition and onboarding process will look and how they will get your employees settled in with the new PEO.
Step 5 – Onboarding
While PEOs save companies time in the long run, the process of onboarding with a PEO can be time-consuming in the beginning. You must get through the growing pains first before taking advantage of the amazing benefits. There will be multiple steps in the onboarding process consisting of a pre-launch meeting, HR and benefit meetings, and a conversation about payroll. Depending on the PEO you decide on, you should have the option to sign physical documents or submit them electronically if the company is paperless. Once the documents are completed and filed, the implementation process will begin. At the end of the onboarding process, you will have a faster, smarter, and more efficient HR administration process.
Find The Right PEO To Help Your Business
Finding the right PEO to assist with your administrative functions is vital to the success of your business. Managing the many HR functions is the backbone of your business. Researching a variety of different PEOs and choosing the right one can be time-consuming, but in the long run, will provide you with more free time so you can focus on growing your business. A PEO provides you with the administrative support you deserve.
At GMS, our team of experts works diligently with you and your employees to make your business simpler, safer, and stronger. To learn more about how GMS can benefit your business, contact us today.