The Benefits of a PEO’s Benefits
As a business owner, an accountant, or whomever the business administration tasks may fall on, one of the main components critical to your day-to-day operations is high-level organization. Accessibility and timeliness are key in making sure that your business runs smoothly. When you partner with a PEO, you’re giving yourself access to a one-stop shop for all your HR needs. With a reliable PEO on your side, you’ll be able to conduct your HR operations on one platform cutting calls and most importantly, costs that need to be made to ensure that all your employees are taken care of from the top down.
When you begin shopping for a PEO, one common expectation is your signed agreement to a master plan. This comes with good news as a master plan can give you and your employees access to a wider variety of affordable healthcare options. In most cases, the PEO master health plan is your best option because PEOs typically have the buying power and maintain a strong relationship with the insurance provider to receive lower than average premiums on large-scale client bases. Often, in the case of larger PEOs, the sizeable client base they hold is worth the same attention as policy plans for a Fortune 500 buyer. The major benefit of a PEO is the availability for you to offer your employees Fortune 500-level benefits will help you in recruiting and retaining top talent in your respective industry.
Signing onto a PEO master plan makes it easier on both parties. The PEO can increase the number of employees under their belt, thus increasing their buying power in the insurance marketplace and potentially lowering costs for you in the future. The PEO is also able to dish out an established medical benefits package without having to approach the open market.
In some circumstances, you may find a PEO that is able to buy in both the open market and private markets to find the most suitable policy plans for you and your employees. They will still retain their buying power, giving you the advantage of more cost-effective options without having to approach the market on your own terms.
If you find yourself committed to your current broker and provider, some PEOs are willing to work with you to find you the best deal or allow you to maintain the same coverage as your previous plan while still offering you other services. However, you may incur a fee or lose in overall savings for not signing on to the full PEO suite.
When you shop for a PEO, pay attention to their master plan. Ask yourself the important questions, such as “Is it scalable to your business’s needs?” “Does it mesh well with the needs of your current talent?” and “Will the benefits attract top talent?”