5 Questions to Ask a PEO Before Committing

Most companies wait until something breaks before they start looking at their PEO setup. A high renewal comes in, a payroll error costs someone money or an employee finds out their coverage lapsed and nobody caught it. That's usually the straw on the camel's back.

But a search is lot smoother when you've done some thinking on your end first. Before you sit down with a PEO, walk through these five questions. It will save both of you time and get you a better match faster.

What Is Actually Not Working Right Now?

Be specific. "Our PEO is bad" doesn't give a broker much to work with. Is it the benefits selection, the account support, the platform, the pricing, or all of it? Write down the actual complaints, ideally with dates and examples. A broker can only screen for what you tell them to screen for.

What Do You Need That You Don't Have Today?

This is different from the first question. It's not about what's broken, it's about what's missing. Maybe you're growing and need multi-state coverage. Maybe you're trying to compete for talent and need a stronger benefits package. Maybe recruiting support or dedicated HR guidance would actually move the needle for you. List it out so the broker isn't just replacing your current PEO with a slightly cheaper version of the same thing.

Do You Know What You're Actually Paying Today?

Not the headline number, the real one. Add up admin fees, workers comp, benefits, and any add on services. A lot of business owners are surprised when they see it broken out line by line. You need this number before you can tell if a new proposal is actually better or just structured to look better.

What's Your Timeline, Realistically?

A proper PEO evaluation takes time. Between gathering census data, reviewing proposals, and running the numbers, four to six weeks is typical. If you're doing this 30 days before your renewal deadline, you're going to be rushed into a decision instead of making one. Know your renewal notice period and work backward from there.

Are You Ready to Loop In Your Team?

A PEO change touches many parts of the business. Depending on your size you'll need to loop in all admins that interface with payroll, benefits, PTO and reporting. If you're planning a switch, think now about how and when you'll communicate it to staff. We recommend at least 45 days for an implementation and a well written e-mail with actionable next steps. Part of the rollout next step should include a virtual benefits Q&A that your broker or PEO should spearhead.

Walking in with clear answers to these 5 questions means less back and forth and a shorter path to the right fit. If you want a second set of eyes on any of this before you start reaching out to PEOs, that's exactly what we're here for.