Working with a professional employer organization, or PEO, you can not only cut overall costs, but also free up more time in your day to focus on core business goals and growth. You enter into a co-employment relationship whereby your PEO becomes the employer of record for your team members, yet you remain in control of day-to-day operations and employee oversight.
- Your PEO takes on many time-consuming tasks including workers’ compensation, taxes, payroll processing and/or benefits administration.
- You are still responsible for hiring and firing and other integral functions.
Work in Tandem With Your PEO
To ensure a healthy partnership with your PEO:
Make sure your PEO has a demonstrated history of adherence to professional performance standards.
This begins with responsible financial management of its business. Verify that your PEO’s financial statements are independently audited by a CPA. In addition to being a requirement in several states, this is universally considered an industry best practice. While independent audits don’t prevent fraud or financial failure, they do confirm that a PEO’s financial statements are complete, accurate and fairly presented according to generally accepted accounting principles.
Know the breadth of your PEO’s benefits plan options.
If their health insurance plans are limited to a state-specific carrier, the partnership won’t work if you have employees in other states or plan to expand your business outside of that carrier network. Find out if your PEO has access to multiple carriers and networks in order to accommodate your future business growth.
Check client and professional references.
Look for positive endorsements within your industry and geographic area. These might include testimonials on your PEO’s website and/or client reviews published on or offline. Contact the authors for further information.
Communicate with your PEO to tailor benefits packages to your employees.
Be sure to speak with your workforce and accurately assess their needs. Then, you can liaison with your PEO to meet them.
Partner with Lyons HR PEO!
Lyons HR is an ESAC-accredited PEO. In addition to its other credentials, this means when working with Lyons, you can be assured that tax and benefit dollars spent on staff are timely and properly dispersed to authorities and benefits providers. In addition, Lyons HR’s risk management services are certified as Best Practice by the Certification Institute, an independent oversight authority.