As your organization evolves, there can come a point where handling payroll, employee benefits, compliance, and other intensive HR functions in-house is no longer a productive use of your company’s time, and partnering with a professional employer organization (PEO) starts making sense. There are many PEOs out there, and not all of them take the same approach – so what should you look for?
Ask About Customization
HR isn’t one-size-fits-all, and co-employment solutions shouldn’t be either. Many PEOs provide only non-customizable packages. But personalization is paramount for your business and employees to flourish truly. You want a provider that asks thoughtful questions, benchmarks against your industry data, and provides fully customized examples of how they configured tailored benefits packages, payroll schedules, performance programs, etc. Ask, “Can I tailor your services to my needs?” to ensure your PEO offers configurable à la carte services to create tailored solutions explicitly aligned to your priorities, workforce, industry, budget, and strategic goals.
Assess Cultural Fit
Since this is a long–term strategic partnership guiding your people’s operations, value alignment, and collaborative approach matter immensely. Assess the interpersonal dynamics closely through initial meetings and align them with your own. Look for a partner that balances expertise consultation with listening to your perspectives and goals.
Benchmark Potential ROI
By handing administrative tasks to a PEO, businesses achieve an average of 27.3% return on investment (ROI). Conduct side-by-side cost structure comparisons validating proposed service pricing models against quantifiable efficiency gains in your current HR operations. Establish metrics-based ROIs to project over the contract to ensure visibility into return on investment.
Review Tech Capabilities
“What are your technology offerings?” is a paramount question to ask your potential HR provider. In addition, what enhanced tools can the PEO provider offer through their infrastructure, automation, analytics, and so on? Assess opportunities to streamline your operations through easy-to-navigate technology improvements such as your timekeeping, employee self-service, and electronic onboarding software.
The best PEO relationships happen thanks to transparency, alignment, and trust in expertise. AlphaStaff’s team of experts is equipped with the knowledge to provide customization, cultural fit, ROI, references, and technology. Let’s connect to explore how AlphaStaff can maximize your business’s operations!