Best Practices: Top 3 Reasons ADP Clients Often Switch PEOs in January

You renewed with ADP and just got your new rates. They undoubtedly went up, but the question is did they go up more than you want to pay? Luckily, signing a renewal does not lock you in for the next 12 months. There is a 30 day out option in your ADP contract, and the truth is now may be the best time to start shopping the market and strategizing for a January transition. Why do ADP clients like to make the switch in January? Without the pressure of an upcoming renewal, you can focus on your company's needs and take the time to fully evaluate your options.

1) It's better to avoid shopping with the herd

Most ADP clients are doing their due diligence and shopping the market before their renewal. The problem is that the PEOs can be defensive in the pricing due to the large demand. Shopping after renewal gives you more leverage with the competition.

2) Time to strategize and evaluate options

Without the pressure of an upcoming renewal deadline, you can make your own timeline and focus on what option will best fit your company's needs. With your renewal rate determined, it's time to reevaluate your costs and examine how they stack up with what's available both with PEOs and non-PEO options. Has your employee benefit participation changed? Maybe your rates should be lower because you downsized and several employees opted out of the health plan. Or maybe you have grown and are coming close to outgrowing the PEO model.

3) Align with medical in January

As long as you are looking, getting a January start date that aligns with a medical plan makes the transition and timeline easier for employees, your accountant and your HR contact.

Questions to consider when shopping PEOs

So now you have decided to price shop your options. It's best to understand exactly what you were getting with ADP and what issues are most important to you. Some points to consider:

• Do you receive an itemized bill that shows exactly what you are paying for?
• What level of service do you need from a PEO?
• Do you have a single point of contact with the PEO?
• How easy is it to get your concerns addressed?

You Don’t Have To Go This Alone

Shopping for a PEO doesn't have to be a time-consuming process. A PEO broker, like PEO Spectrum, does all the work to help you find the best solution at the best price to fit your company's needs. Using PEO Spectrum, we provide a completely free detailed financial analysis of your current costs, breaking down your invoice so you can see the line-by-line costs and how they compare to the top competitors that fit your needs. We work with each PEO on your behalf to cut down your time by 80%. Want to learn more? Contact us today to get started.