3 Signs it’s Time to Leave Your PEO Insurance Provider
COO & Co-Founder
COO & Co-Founder
Professional Employer Organizations (PEOs) are great when a company is just getting off the ground. At an early stage they deliver two major benefits:
However, at a certain point, it makes sense to switch because there are typically huge cost savings and duplicate or inadequate services.
The biggest telltale is cost. PEOs charge a per-employee administration fee for their services. Those fees can reach into the hundreds of thousands of dollars, all in the name of cheap health insurance! There are tons of ways to skin health insurance cat in the small and large group markets that will dramatically reduce this spend.
Another sign is the PEO’s built-in services start becoming duplicative. This happens when a company hires a full-time HR or People Operations manager. This hire will replace some of the built-in PEO support services offered to staff.
Finally, as a company grows, the demands on internal payroll, accounting, and HRIS systems become much more sophisticated. For example, integrated human capital and performance management systems can make a huge impact on scaling, but are rarely offered by PEOs. The demands tend to outgrow the capabilities of most PEO’s leaving managers wanting for “better systems”. This leads managers to adopt best-of-breed software tools that overlap with the PEO’s services.
Ultimately, companies end up paying huge admin fees for systems and support that they’re not using.
Decentralizing the HR suite can be intimidating for managers that have grown up with a PEO insurance provider. However, when done with the help of experienced benefits brokers and systems consultants, the transition is quick and (almost) painless.
Be sure to keep an eye out for these signs as your company grows to take advantage of big cost savings and the chance to get best-of-breed tech services when you switch off your PEO. Talk to us if you have questions! Email us at email@example.com at any time. Or create an account here to get a quote!
Have you ever wondered how you can save money on your group health insurance plan? Ever wanted to find a way around paying those high premiums and save your company money? Well, Igloo Health is here to guide you through the process of medical underwriting in the current marketplace.
What is a BOR? It’s your “Broker Of Record.” This is an insurance industry term that many people don’t know about, but it could be the most important thing to learn as a business owner. Understanding what a BOR does (and what they can’t do) can give you peace of mind. Have you ever been promised
What if we told you that the price you pay for your monthly premiums wasn’t the most important thing to pay attention to when choosing health plans? That might sound a little crazy but the reality is that there are critical factors to look into besides premium. Ever wonder why you were stuck with a
A lot of people will tell you how happy they are with their current health and benefits broker and rave about how fantastic of a job they’re doing. Still the question remains: “is he really doing the best job he possibly can?” These same people will claim how their broker is the nicest guy in
Most business owners don’t take the time to factor in the fluctuating costs of health insurance renewals. Luckily, we’re here to think ahead for you. In the past, renewal pricing has been pretty standard across all states and carriers, with an average bump of about 5% or so. Unfortunately since Obamacare, that’s not the case. As
Is it possible to change employee health insurance mid-term? It’s one of the most common questions I hear. Most people assume that once you sign a healthcare contract, you’re locked into that plan for the next 12 months. Well, I’ve come bearing good news: that’s not necessarily true. Actually, switching healthcare plans during the term year