Opinions on PEO (Professional Employer Organizations)

by a professional

1 month ago

For smaller businesses, I'd be interested to hear anyone's feedback on using PEOs to outsource HR functions and reduce costs on benefits. I've done some research, but getting feedback from anyone who has used one would be great, including which PEO and any pitfalls to watch out for. 

Here are some things I'm wondering about:

1) What it's like to break up with one when you outgrow their services or want to internalize for more control? 
2) Is there contract language to be aware of? 
3) Is it better to go with an Administrative Services Outsourcing (ASO) agreement?
4) Is there a PEO companies that currently stand out above the rest?

Thanks!

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investor from University of Pennsylvania - The Wharton School

Thank you ^^Searchfunder member‌ ^^Searchfunder member‌ and ^Searchfunder member‌ for the tags. Regarding the questions in the original post: 1) Usually there is a notification period of###-###-#### days to terminate a PEO agreement. Sometimes a PEO can have an initial term of 1 year and then after the initial term, the client can terminate with###-###-#### days notice. 2) Regarding contract language to be aware of, you will want to read the agreement carefully as some PEOs can include additional fees in their agreement that you need to be aware of. 3) ASOs can be a great option for a company. One of the key distinctions lies in the insurance. Your medical insurance and workers comp as an example would be through the PEO which can be advantageous or sometimes not advantageous. You just have the run the numbers. 4) www.aspenhr.com :))

1 month ago | like reply | 0 likes

investor from University of Pennsylvania - The Wharton School

I know the industry really well - both PEOs and ASOs. Let me know if you want to chat. Happy to help!

1 month ago | like reply | 0 likes

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