As a professional employer organization (or PEO), you are responsible for helping with day-to-day management tasks, which include human resource (HR) things like employee benefits, recruiting, training and more, according to Accounting Web. PEOs give services to around 156,000 and 180,000 small and mid-sized businesses, which employ between 2.7 and 3.4 million people, according to the National Association of Professional Employment Organization (NAPEO). Long story short, there is a large potential market for your PEO, and you want to make your organization as appealing as possible for your potential clients. As you advertise your PEO, make sure you have the following things handled internally.
Will You Pass a Background Check?
Just like any other employee, businesses like to perform a background check on their potential PEO, according to Centripetal Consulting Group. Interviews, websites and resumes only reveal so much, so many businesses are inclined to dig deeper, especially if they’re going to be jumping into a co-employment situation. No one wants to trust their HR and hiring processes with a company whose credentials don’t line up.
Do You Have References?
Following up with the background check, it’s also important that your PEO has references available for its potential employer. References allow the hiring business test out the merit of the company, and a good PEO should have some raving references to back them. Talk to previous clients and current clients and ensure that they are willing and able to give a solid endorsement to any potential new clients.
In addition, co-employment can be a tricky topic when it comes to insurance. Having a comprehensive PEO Insurance policy already in place will help to demonstrate to a potential client that your organization is reputable and well-protected, and will help them to feel more at ease about bringing you on to handle more sensitive operations.
What is the Overall Cost Structure?
Probably the biggest thing that every business is looking to find out is how much everything is going to cost, according to Business News Daily. Since you’re going into a co-employment agreement, make sure that you have pricing information organized and ready, and communicate it to the business.
Is the Business Accredited?
This follows up with needing a background check and references. People just want to make sure all the bases are covered and that they really know who they are about to be working with. The perfect PEO would have an IRS certification and ESAC accreditation, which you should ideally already have.
Can This PEO Grow With the Company?
For many businesses, it’s important to visualize whether they can see their company working alongside yours in the future. If your PEO can tailor its services to the client’s needs and give support where needed, then they are likely to see that your company is right to pair up with.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.