Helping Your Clients Understand PEOsMar 23 2016, by Sales in
PEOs are gaining popularity among business owners and employers. However, there are still many out there who are unsure about PEOs and what they can do for their business. Starting a new path is always a little intimidating. As an agent, it’s your job to show your clients the true power of PEOs. Here are some things to keep in mind as you help your clients understand the benefits of choosing a PEO.
Inevitably, the first question your clients will ask you is “What is a PEO and why does my business need one?” This is a great opportunity for agents to lay out all the essential information. If your client is a small business owner, stress the fact that PEOs can significantly reduce their stress and streamline their HR process. Your clients are very busy people, so turning all HR functions, including payroll, administration, health and retirement benefits, workers’ comp, state and federal compliance regulations, and even employee training, over to a PEO is a perfect way to lessen the load of running a business. Of course, your clients will be glad to know that they will still have control of their workforce when it comes to hiring, supervising, promoting, or terminating their employees. But a PEO can take the tricky and time consuming HR tasks out of their hands.
Your client’s next question will likely be about cost. How will the cost of utilizing a PEO pay off for their business? Having someone to handle HR stuff sounds good, but your client needs to know exactly what this entails in order to decide that choosing a PEO is a worthwhile investment. Emphasize that PEOs are designed to handle thousands of employees. This gives them the ability to buy insurance and benefit plans for a reduced price or allow the business owner/employer to offer great plans that will attract and keep top notch employees. Your clients will also be working with highly trained HR professionals who are experienced in risk management, payroll, and many other aspects of employee administration. The PEO’s HR personnel have knowledge and expertise that is invaluable to your client’s business. Your client is probably overwhelmed by the constant transformation of state and federal laws. This is yet another area where a PEO will be a lifesaver for them. The PEO can give HR manuals to employees and the policies and procedures within the manual will be kept in line with all these laws and will be updated as needed when the laws change. Having experts who understand ADA, ACA, and EEOC is crucial for your clients if they want to avoid paying huge fines or dealing with a lawsuit.
Whether your client has thousands of employees or just a handful, they can see great improvements in their HR operations when a PEO comes into the picture. Explain the basics of what a PEO is and does and show how the many PEO benefits will function in your client’s unique situation and business. Once you clear up their questions, they’ll be excited to get started.