The entire idea behind Professional Employer Organizations, or PEO’s, is to streamline core business functions like payroll, benefits administration, and compliance, so that small- and medium-sized companies can run smoother with lower overhead.
As an example of how we evaluate PEO’s for their worthiness as an outsourced HR services provider, we’re comparing three PEO’s, each with their own unique company profile. This will help you get a feel for what to expect in the report we provide you after your consultation.
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Oasis Outsourcing is a ‘service-obsessed’ HR, payroll, and benefits administration service provider with an upstanding reputation delivering comprehensive PEO solutions for their clients.
Their service model is client-focused, and they assign a dedicated Relationship Manager to every small- and medium-sized business they serve. This reduces complexity and administrative burden, as a single point-of-contact makes the entire PEO relationship much smoother and more efficient.
- Corporate partnerships with investment companies like Stone Point Capital, LLC and Kelso Private Equity
- Accounting support is provided by one of the biggest names in the industry – Ernst & Young
- Health insurance options span more than five different providers, giving you more choice in the benefits that are made available to employees
We recommend Oasis Outsourcing if:
- You are looking for retirement or 401(k) administration as part of your benefits offering
- You value service and responsiveness more than a big, national brand
- Your company is in the healthcare, education, financial services, retail, or hospitality industries
2. Engage PEO
Engage PEO is unique in the outsourced HR services space because it operates as a brokerage more than it does a service provider itself. This presents a few challenges, but it can also streamline the entire service selection process. A PEO brokerage is typically going to have a broader service offering, but those services are almost always going to be administered by the PEO’s partner providers.
- Engage PEO is recognized as a Certified Professional Employer Organization (CPEO). This certification is compliant with the federal regulatory environment for PEO’s instituted by the Small Business Efficiency Act (SBEA) in 2014.
- Engage is ESAC Certified. This certification is fairly rare, as less than 5% of all PEO’s have it.
- Equitable service offerings on par with bigger PEO’s
We recommend Engage PEO if:
- Industry-recognized PEO certifications are important to you
- You want to save time by working with a brokerage to identify and source individual HR-related services
- You are cost-conscious but not willing to compromise on selection
The CoAdvantage business model is supported by the company’s four core competencies: payroll, benefits administration, risk and compliance, and HR technology. By combining these four components as a complete solution for their clients, CoAdvantage offers a full suite of PEO services custom-tailored for each client.
- A focus on serving small businesses
- Consultative service approach that hinges on your unique goals and business function
- 401(k) administration
- HR mentorship and coaching is available as part of the overall service
We recommend CoAdvantage if:
- You are a small business experiencing rapid growth, or you are expecting to grow in the near term
- Your needs are basic, and you want a PEO that offers just the fundamentals for your employees
- You could use some help in understanding best practices for HR, payroll and benefits administration
How to Choose the Best PEO
Some small- or medium-sized business make their initial foray into the world of PEO’s without understanding what is available in the market. This is completely understandable, as most business owners are focused more on running their businesses than they are evaluating outsourced HR, payroll, and benefits administration service providers.
The major differences between these three PEO’s lie in their size and specialties. Smaller businesses with less sophisticated needs might be best suited to CoAdvantage, whereas businesses looking for more of a PEO broker would likely find Engage PEO to be an ideal fit.
As you can see in the comparison above, we take the time to identify the key features that are most important in a PEO, doing the heavy lifting for you so that you can make the most informed decision possible.
To determine which PEO is right for you, get started now with a free, 15-minute consultation with one of our PEO specialists. You’ll receive your free report of the seven PEO’s that best suit your company.