Are You Feeling Stuck With Your Current PEO? 5 Ways to Know It's Time to Make a Change

Posted by Shawna Smith on August 18, 2020 at 8:55 AM

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Sometimes, a relationship with a PEO sours for reasons that you can't easily put into words. You might not even be sure why it is that you're feeling that way. Something about the arrangement just isn't working for your business anymore. It's important to diagnose why you feel this way, especially if you're considering taking action. Take a look at this list of symptoms that could signal that it's time to change PEOs. 

Sign #1: You are considering hiring another HR representative. 

The cost savings from PEOs come largely from not needing to hire more HR employees. Thanks to your PEO, you should be able to streamline your existing team, making the most of the employees currently in that position without needing to hire someone new.

Is your current PEO providing best-in-class service? Let's find out.

 If there's a need to hire a new HR employee, the PEO is not adapting to your company. You may, on further examination, find that communication has broken down and the PEO does not realize that your needs have increased. Alternatively, you might find that the PEO does not offer the full range of services you need for your business. If you find yourself planning out a new HR hire, it may be time to reevaluate your relationship with your PEO. 

Sign #2: You dread calls with your PEO. 

A PEO relationship is like any other relationship: if it's not good, then there will be an emotional toll. If things aren't working out between you and your PEO, you may find yourself dreading the need to make those phone calls. Whether you're just checking in or you're trying to accomplish something, you may feel as though your account executives or representatives aren't listening to you. Negotiations could feel consistently hostile. You may start to blame each other when things go wrong or feel that your questions and concerns are being ignored.

When you connect with your PEO, you should feel more relaxed, not less. Your PEO is there to should take tasks off the shoulders of your HR team and ensure that the needs of your business are met. You should feel as though each conversation leads to the PEO solving a problem.

Sign #3: Your company culture is deteriorating.

One of the biggest benefits of a PEO is that it can give your internal representatives more time to focus on your company culture. Instead of constantly having to worry about payroll, reporting, or compliance-related tasks, your internal team can focus on building up your employees and creating a great workplace where people enjoy working.

Sometimes, however, you may find that your HR team just doesn't have the expected time to work on your company culture. They may constantly find themselves pulled away to work on other tasks or to take care of other responsibilities. In this case, you may find that your PEO isn't providing you with the important competitive advantage you should experience. Instead, look for a PEO that will help free up your time. 

Sign #4: You aren't attracting top talent. 

In spite of recent changes across the workforce, many businesses are still noticing a significant talent shortage. If you're an employer of choice, you shouldn't have any trouble finding the employees you need to fill those roles. 

A PEO should provide you with the benefits, compliance adherence, and other advantages that will help you attract top talent to your open positions. In fact, this often proves one of the top advantages of working with a PEO. 

Today's top talent cares about the benefits you can offer. When you partner with a PEO, you help increase the likelihood that top talent will be attracted to your business. If you aren't attracting that talent, it could be that the benefits you're able to offer aren't meeting the needs of the top talent in your industry.

Sign #5: Your PEO fails the "Grade Your PEO" scorecard.

It can be tough to compare PEOs without objective criteria. Is your PEO really failing to meet your needs? Will another PEO provide better services that will be more likely to help you meet your goals? With the "Grade Your PEO" scorecard, you can get a better look at how your PEO performs compared to others in the industry. If your PEO fails the scorecard, chances are, they also are failing to meet your needs--and that means it's time to move on. 

Grade Your Current PEO Scorecard

ABOUT THE AUTHOR: 

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Topics: Outsourcing HR / PEO

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Here, you'll find educational resources, best practices, and business tips created for business owners and leaders. We cover topics including human resources management, PEO, compliance, risk management, staffing, and more. Learn more about Questco here.

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