What is a PEO Brokers Role and How They Can Elevate Your Business

For small and medium-sized businesses looking to simplify HR processes, manage employee benefits, and stay compliant with ever-changing labor laws, Professional Employer Organizations (PEOs) have become a must-have. With over 800 PEO providers in the marketplace, selecting the right one can feel overwhelming. This is where a PEO broker becomes a valuable asset.

Acting as an intermediary, a PEO broker helps businesses identify the best provider suited to their needs. Similar to insurance brokers, PEO brokers don’t charge businesses for their services. Instead, they receive compensation from the PEO a company decides is the best fit.

Whether you’re based in Florida, North Carolina, or elsewhere, working with an experienced PEO broker can save time, reduce costs, and ensure you select the right provider. It may sound counterintuitive but using the services of a broker actually save a company money.

In this post, we explore five key reasons why collaborating with a PEO broker like ProHealth PEO Advisors can deliver significant ROI for your business.

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Breaking Down the Benefits of a PEO Broker for Your Company:

1. A Trusted Advisor

PEO brokers bring a wealth of knowledge about the industry, with a deep understanding of the services provided by various PEOs. Since each PEO is unique in their competitive advantage, it’s important to understand the pros and cons of each, including support SLA’s, fee structure and platform technology. This ensures the PEO ultimately aligns with your business goals and objectives.

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2. Save Time and Cut Costs

The process of researching, comparing, and negotiating with multiple PEOs can be time-consuming. The average PEO evaluation time for a 15 employee  business is 13 hours. A PEO broker reduces time by 90% by streamlining the process and  offering a curated selection of options, allowing business owners to focus on what matters most: running their company.

Since PEO brokers are valued by the PEO vendors for their book of client business, brokers often secure better rates and terms. Their ability to foster competition among PEOs can result in a more favorable pricing structure. Additionally, they provide strategic guidance on when and how to negotiate to ensure maximum savings.

3. Objective and Unbiased Guidance

PEO brokers are independent and not tied to any particular provider, so they offer unbiased recommendations based on your company’s specific needs. Their primary goal is to act in your business’s best interest.

It’s also essential to understand their compensation structure. Brokers earn an ongoing commission from the PEO when you decide to move forward with that solution. This commission is separate and does not affect the client’s health insurance or admin fee pricing. A trustworthy broker will be transparent about this and prioritize delivering value over personal incentives.

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4. Open Enrollment Specialist

A PEO broker meets with your employees annually to discuss changes to the benefit package. PEO support reps may often hold a meeting but will be limited to fielding high level general questions since they're not licensed insurance brokers. PEO brokers will provide concrete answers to employee questions and concerns. This strategy encourages employee engagement and helps ensure that staff members are enrolling in benefits that best align with their needs.

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5. Continued Support

Once you’ve narrowed down and then selected a PEO, brokers assist in the implementation process, ensuring a smooth transition for both your employees and HR team.

Their support doesn’t end there. Brokers continue to offer guidance even after the contract is signed, helping to address any issues and ensuring that the PEO remains a good fit as your business evolves.

Final Thoughts

Teaming up with a broker, such as ProHealth PEO Advisors, makes the process of selecting a PEO significantly easier, saving both time and money while securing the best benefits for your specific goals. With their industry knowledge, negotiation expertise, and ongoing support, a PEO broker is an invaluable resource in navigating the complexities in the health insurance and the PEO evaluation process.