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    Should You Switch PEOs?

    Businesses are always looking for a way to improve their productivity, increase revenue, and get the best return on their investments. A Professional Employer Organization (PEO), which is basically a company that acts as your outsourced HR staff, can help you do all three—and more. But, not every PEO provides the same level of service and value.

    How do you know if you’re getting the best from your PEO partner? In this blog post, we’ll discuss the major differentiators for PEO providers, and give you tips for finding the best fit for your organization’s needs.

    Cost and Value

    Cost is perhaps the most important consideration for most businesses when they’re comparing PEO services. When thinking about cost, it’s important to keep in mind the overall value that comes with partnering with a PEO, including:

    Scalability—If your business is on the rise and you’re adding more employees, you may benefit from a PEO that can scale pricing accordingly. This is particularly important for growing companies as they continue to expand and hire more staff.

    Flexibility—Does your PEO offer services that your business actually benefits from, or do you get the same cookie-cutter service that all their customers receive? Your PEO provider should take the time to get to know your organization and provide support where you truly need it.

    Accessibility—One of the most attractive features of a PEO is its ability to offer small-and mid-sized businesses access to high-quality health insurance at an affordable price. This helps control costs, and gives your employees access to top-quality health insurance plans through trusted carriers.

    Compliance—Administering your employees’ health benefits can be daunting—especially when you take into account the barrage of employment laws and regulations. A PEO can help organizations navigate the ins and outs of benefits administration—saving them from incurring costly fines and penalties.

    Related Reading: What's the ROI on Using a PEO? New Research Suggests Over 27%!

    Service and Support

    The level of support and service you receive from your PEO partner can make all the difference in whether or not they’re providing a valuable service for your organization. When deciding whether you should switch PEOs, It’s important to understand how they will support your business, including what services they offer, how often, and how easily they can be accessed. When evaluating prospective PEO partners, you’ll want to take the following into consideration:


    What is your organization’s preferred method of communication? Some partners leverage traditional channels such as email, while others offer more tech-forward options such as online chat. Other businesses prefer to conduct business over the phone or in-person (or, via Zoom, in a post-pandemic environment). You’ll want to partner with a PEO that supports your communication framework.


    Does your PEO seek out your feedback and use it to deliver better service to your organization? Not every PEO makes use of their customer feedback to improve their partners’ experience. Other PEOs take a customer-centric approach and go the extra mile to truly understand their clients’ needs. If you feel your current PEO isn’t being a good partner by listening to what your organization’s needs, it may be time to switch.

    Related Reading: What Can a PEO Do for a Business Owner? Ask Dave!

    A good PEO will work with your company as a trusted partner, and have the resources and expertise to ensure the job gets done right. The right PEO can also guarantee that your employees have access to the benefits that they want and need.

    Contact us to request a free consultation.

    Norman Paul

    Norman Paul is CEO of SWBC PEO. He is responsible for overseeing the division’s day-to-day tasks, including payroll, employee benefits administration, workers’ compensation, and HR support for more than 14,000 shared employees in Texas and 40 additional states. Norman also serves as Corporate Counsel for SWBC PEO, providing guidance on compliance issues, overseeing unemployment claims administration, and conducting client training.

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