Questions to ask a PEO
Important questions to ask a PEO before hiring them.
How long has the PEO been in business?
Longevity is a key factor in reviewing indicators in how the PEO operates its fiduciary responsibility and service levels. At StaffScapes, we have been in business since 1996.
Do you specialize in specific industries?
Some PEO’s will specialize in specific industries such as restaurants or banking. At StaffScapes, we will evaluate each company on its own merit. However, in general, high risk industries such as construction do not always meet underwriting guidelines.
Will I be assigned to one person or a rotating team of individuals?
It depends. Many large PEO’s have high turnover in addition to large departments that handle the client workload. In these situations, a team is often assigned on a rotational basis. The StaffScapes team is comprised of employees who are dedicated and whom offer a track record of several years of service—some even close to or over 10 years. Given this, we are able to offer dedicated individuals to handle your account. Each employee also has a cross trained backup to assist you should your primary contact not be available.
Do you charge a flat fee or by percentage of payroll?
PEO’s will typically review the account and ask key questions regarding needs, risk, history and current rates to submit request to underwriting. Often, a flat fee is quoted. StaffScapes chooses to remain flexible to meet the needs of its clients and their future plans. Therefore, we may offer either a flat fee or percentage, whichever is best for both parties.
Are any of your team members certified?
Certification is an indicator of commitment to the industry and in our opinion shows a dedication to a career and not just a paycheck. StaffScapes frequently sends its employees to seminars to update the current certifications already achieved. Staff members are certified through SHRM, the Society of Human Resource Manager, the American Payroll Association and maintain licenses for insurance and benefits.
What is your commitment to future technology?
As technology continues to advance, offering convenient apps and the ability to conduct transactions via smartphones and other wireless devices will most assuredly be a part of our daily processes. StaffScapes is above all concerned with security and will do its best to stay current with the times but will only introduce new methods once we are comfortable with the necessary protections that are in place.
How do you handle problems with paychecks?
In addition to asking how problems are handled, we believe that asking a prospective PEO about error percentages, specifically those that are material to the satisfaction of its clients is equally if not more important. If they can not produce a factual or even guesstimate of these numbers, perhaps they are not as concerned with service as they should be.
StaffScapes tracks any client issue and reviews the data as a team periodically to ensure that processes in place are working and that clients receive error free payrolls and up-to-date advice. We are proud to say that our rates are lower than one percent when reviewing reported errors. Any errors that do occur with paychecks are investigated and rectified.
When was the last time you were audited?
Independent audits ensure that your money is being handled responsibly and that required tax payments are being made as promised. Third party oversight is a necessity and StaffScapes complies with independent audits of its records.
What forms of protection do you offer, such as liability, monetary etc.?
Making sure that the prospective PEO is protected for the unplanned is a key factor in the ability to withstand issues and continue operation. We advise you ask for confirmation and consider speaking with advisors. StaffScapes maintains policies for general liability, ELPI and workers’ comp.
Please describe your benefit offerings.
A key area employers often seek to help attract and retain a qualified workforce is benefits. An advantage of working with a PEO can be the ability to offer enriched plans at reduced rates that individual small businesses typically do not have access to. StaffScapes advises a full review of benefit offerings prior to making a decision.
As an example, StaffScapes offers dental, vision, life, AD&D, EAP, AFLAC, 401k and access to several health plans as part of our benefit program.
May I speak to a few clients and employees regarding their experiences with your PEO?
Talking with current and even former clients and/or employees should give you a great perspective on how your prospective PEO will handle your account and take care of your Human Resource and payroll needs. StaffScapes offers several individuals willing to speak with you about our services and client satisfaction.
How long have you had your current relationships with your benefit providers?
We have been working with our benefit providers for over 15 years. Asking about the relationship your prospective PEO has with their third party partners and how much turnover they have had with providers can give you an idea as to the sound business operations of the PEO. If they have changed providers frequently, this may indicate issues with service, finances or lack of ability to offer participation due to non-desired benefit offerings.
What additional fees do you charge other than for payroll?
When evaluating options, be sure to compare Apples to Apples when looking at pricing. Some PEO’s charge additional amounts for employee W2’s, new hires, terminations, handbooks, and other services. StaffScapes includes many of these services as part of their standard fee.
What service structures are available to me? Is co-employment my only and best option?
Some PEO’s will offer various levels of service choices to fit your needs. Ask the provider to describe what they offer and have them help you assess what will work best for you. In general, most of the clients StaffScapes serves work well with the PEO or co-employment model. However, ASO (very similar to the PEO model but does not include co-employment) options are available.
What organizations are you members of? Do I have to obtain written authorization from the employee for deductions?
As a Member in good standing with industry organizations, PEO’s have access to legislative information and updates that will impact your business. Active participation we find is fundamental in being proactive to changes that must occur rather than reactive. StaffScapes is a Member of NAPEO, the National Association for Professional Employer Organizations and SHRM, the Society for Human Resource Management.