5 Important Steps to Consider Before Hiring a Professional Employer Organization (PEO)

August 15, 2022

Just like how you need to acquire a taste for certain foods, picking a good Professional Employer Organization (PEO) is exactly the same. Finding something that caters to your distinguished taste can be a bit difficult. This is especially true if it has the added notion of providing your company with the promise of a bright future.

When you bring a PEO to manage your employees, you’re basically handing over half the reigns to your business. However, that doesn’t mean all employer organizations are bad. Instead, it is important to ensure you’re hiring a good and reliable PEO. In this blog, we’ll list the top five steps you should follow when looking for a professional employer organization.

How to Choose a Compatible PEO?

Although uncommon, there have been cases where a financially unstable PEO has done more damage than good. From increasing their rates to refusing to pay employees, the internet is cluttered with such horror stories. Perhaps this is why it is necessary to focus on the customary precautions before finalizing a PEO. Below are five essential steps you should take prior to making any decisions:

1. Verify Their Credentials
Make sure that the organization you’re leaning towards is either licensed, registered, or accredited to a state or federal level. Verifying the credentials of a PEO that claims to be ‘respectable’ is essential because you do not want to be dealing with an uncertified organization.

2. Ask for References
Similar to how a company asks its employees for references, a PEO should also provide their customers’ references for their customers. When researching, ask them for three to five recent customers’ contact information. Moreover, you can also request a list of all their potential clients for an in-depth inspection.

3. Check Their Online Presence
Social media is the hub for all kinds of information. Rather than consider it stalking, think of it as looking for any suspicious activity that stands out. This will help to give you a good sense of their corporate personality. You can also look for online reviews to get further insight.

4. Evaluate Their Financial Security
If the PEO you’re going for is a publicly traded company, you can easily find their financial statements online. However, if it is a private organization, request a copy of their most recent audited financial statements. All of this will give you a clear idea of how a PEO’s internal system works and how accurate their calculation is.

5. Conduct a Background Research
Lastly, conducting in-depth background research on your potential PEO is crucial. From social media to court records, the smallest bit of information can be of big help. See how many employees they have, what their credentials are, how many years they have been active, etc.

Looking for a Reputable PEO in Houston, TX?

All in all, before hiring a professional employer organization, make sure you have enough credible information. Run it by multiple sources to confirm the authenticity and verify their credentials yourself. Furthermore, if you want to hire a PEO with a good history and score, contact ElevationHR at (281) 353-8847 today.

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