Managing a growing business is an overwhelming task for most incumbent managers. The number of employees in business grows concurrently with the business. The human resource team may have to outsource a management team to reduce the growing workload. A Professional Employer Organization, often referred to as PEO, is often helpful to businesses when it gets involved in the management affairs of the company.
Workers’ compensation is one of the aspects that remain hectic to managers and employers. All employees on business are entitled to receive protection from work-related risk. Such insurance arrangements must be handled with care because of the essential value they have to the business.
The arrangement for payment of regular premiums is made by the PEO firm involved. It is still the PEO that make negotiations with the insurance companies in terms of the payment to be made. Through the collective bargaining and the ‘pooling’ of risk the PEO firm will ensure that the cost of the insurance gets reduced for its clients. Through the help of the PEO firm, the management of any business is able to reduce on the time wastage, creating more time for the execution of more important task.
Having in mind the PEO plays an important role, it is important to engage a reliable PEO firm. There are several things to consider when selecting a PEO for your company. Majority of the companies that are already in business have a contracted PEO service providers. PEO evaluation is a requirement for the companies to be sure that they will receive top quality service. Read on and get to know of what to look into when evaluating your current PEO.
To start with, you will need to confirm if it still has the approval of the state. Working with a PEO that does not have the approval of the state might expose you to too much risk. An a business, you have the right to request for proof documents of the state approval. Unapproved PEOs may not be trustworthy. Such firms often end up taking advantage of their clients.
The current role of the PEO in risk management in your business is another essential consideration to make. If your PEO is still worthy of the job, the PEO will take into consideration all thing that may pose a threat to the business.
You will also need to reconsider the financial ability of the PEO firm. You cannot continue relying on an insurance brokerage firm that has no ability. As a business you will require a reaffirmation that your PEO still possess the financial ability.