If you are the business owner asking themselves if you are too big to work with a PEO then congratulations! Most entrepreneurs have never realized the dream you are living in right now. You should be proud of yourself. With growth comes a lot of challenges along the way. Chances are you are nodding your head in agreement whilst thinking of all the bumps in the road youâ€™ve hit before you got to where you are today.
There are two kinds of businesses who consider whether or not they are too big to work with a PEO. There are the ones who have never worked with a PEO before but are really strained by trying to manage it all themselves, and those who are already working with a PEO and wondering if the savings is now upside down.
Not Too Big To Work With A PEO If You Are Over 50 Employees
Many think the magic number for needing to take HR in-house is 50+ employees. In many cases that might have been true before. HR is complicated now. Healthcare puts an interesting spin on how to make internal HR and benefits management happen on your own. For instance, healthcare benefits costs are at an all time high. What a small to medium-sized business could afford to offer for healthcare benefits to their employees is not what it was 10 years ago.
Managing everything HR related in-house also means hiring someone to help you manage it all. Hiring the right person for the job requires knowing what it takes to be a good HR manager. Do you know how to hire a good HR manager? What kinds of qualifications should you be looking for?
Then there is having to offer and pay for all the benefits on your own. That is usually an expense that isnâ€™t factored into having HR in-house.
If you have been working with a PEO, what you stand to lose besides all of the above is the expertise youâ€™ve been taking advantage of that helped you grow to where you are today. PEOs are able to offer the kinds of HR consulting that companies over 50+ really need to keep things running smoothly.
As your organizational chart continues to branch out, there will be new things to consider as far as organizational management from an HR perspective that a PEO canâ€™t help you with if you decide to do HR on your own.
What To Do If You Feel Like Youâ€™ve Outgrown Your PEO Contract
For those who already have PEOs and are feeling like itâ€™s just training wheels and now you are ready to start riding off on your own, maybe what is really needed is realigning your contract with services that meet the needs of your now larger organization. Some PEO contracts are multi-year and companies sign them to lock in a better savings over time. But what worked 3 years ago may not be what you need now.
Two ways of solving this problem are negotiating with the PEO you already have or seeing what other PEOs may work better for a larger organization. Not all PEOs are the same. Have you spoken with your PEO about what else you can do for your business now that youâ€™ve grown?
Sometimes PEO customers have been with a PEO so long they may not realize theyâ€™d have better service and/or greater savings with another one. It is sometimes good to see if the grass really is greener on the other side, especially if you are a medium-sized business. What does it hurt to see if you can save money on services or gain more benefits for the same price?
PEO Brokers Help Companies Who Need To Know If They are Too Big To Work With A PEO
If you ask you any PEO if your business is too big to work with them of course they will enthusiastically say, â€śNO!â€ť Perhaps that question is better poised with someone who has no stake in whether you work with a PEO or not. Maybe you are too big, maybe not. Asking an expert in the field without any cost to you could end up helping you find a huge savings.
You donâ€™t have to make a big mistake by firing your PEO to find out youâ€™ve created a huge mess in your organization by trying to do it on your own. Talk to a PEO broker like PEO Spectrum and get this question answered with confidence.