Blog - 5 Reasons to Drop Your PEO

5 Reasons to Drop Your PEO

You chose to outsource HR activities with the best of intentions. Initially, the appeal was there – 3rd party as much as possible to focus on your organization’s strategic endeavors. Though over time, service problems and costs accelerate to an unsustainable reality. This causes a reconsideration at this juncture; these 5 reasons to drop your PEO are most prevalent:

1. Declining service – when you have questions or need support, and phone calls to the PEO go unanswered, it’s a drag on you and your employee’s productivity. Typically, this occurs due to the PEO being understaffed to serve your needs, lacking experience in your industry, or is a poor structural fit for a business of your scale and ongoing multi-state or international expansion. Service contracts should include access to someone who can answer questions from you and your employees. The organization should cover all the complexities of your industry related to HR, benefits, payroll and recruiting expectations. Often, these inabilities are discovered after the contract’s signed.

2. Rising costs – with a PEO’s initial bundled quote, charges for specific services are often obscured. A la cart services fees may be omitted, realized post-contract (and post-budget allocation).

3. Initial perceived value eroding – when you signed your PEO contract, your scale indicated it was a cost-effective move. Then per-employee fees quickly become cost-prohibitive as your business continues to expand. Cost compounds addressing new regulations affecting your healthcare and other employee needs. Eventually, you outgrow your PEO, and its value to you.

4. Cultural differences resonating – this realization doesn’t appear until after the PEO contract’s signed. If your company’s culture and processes differ greatly from theirs, creating misaligned internal/external teams, the resulting problems are difficult (Impossible?) to overcome, eroding the relationship and diminishing your HCM value to your organization.

5. Poorly fitting arrangement – if your PEO doesn’t take time to evaluate the expanding needs of your company, they’re ultimately unable to meet your unique needs as they continue to arise. The original agreement fit; now you’ve outgrown it.

Advantages Beyond a PEO – a Flexible HR Environment

Today, you have rational and resources available to progress beyond the PEO. An industry trending move is a flexible consulting-system configuration allowing you to receive the proactive consulting services you need, with a convenient cloud-based HCM system to cost-effectively manage the HR aspects closest to you.

Custom Tailored Consulting – You can have affordable, risk-mitigating consulting to suit your specific industry expertise, geographic business process environment and budget. Both fixed-price on-demand remote support and HR as a Service (HRaaS) plans are popular options, as are needs-configured hybrid models extending the abilities of your HR staff. Payroll & Benefits Administration outsourcing is another component that may be added to any consulting arrangement you choose. A tactical, strategic and affordable approach.

HCM Platform – Cloud-based software built to make your HR life easier and elevate every aspect of your employees’ work.

These systems provide:

Human Resources & Benefits – Centralized HR data, automated workflows and powerful self-service benefit enrollment tools.

Payroll & Tax – Automation and validation for FLSA, overtime, wage compliance, tax codes, and other concerns.

Time & Attendance – Save time, reduce errors and securely collect time, via mobile app, biometric, badge, keypad or facial recognition.

Recruitment & Training – Automated tools to hire the best talent — track certifications, licenses, training programs, government requirements, and other expanding needs.

Together, incorporating consulting with a robust HCM system enables you to mitigate risk, achieve ongoing cost savings, optimize your HR abilities and productivity of your organization’s staff. Asure Software provides this configurable mix of custom consulting and a flexible HCM platform, achieving a 25%-50% cost saving advantage over PEO’s. For a complementary consultation, contact Asure.

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