Choosing the Best PEO
Does the PEO focus on the construction industry? If not, you may experience some frustrations down the road as “white” collar PEO’s don’t necessarily understand the construction sector nor do they typically want to work with clients who need to have high risk workers comp coverage. Like most industries, PEO’s focus on helping clients in certain types of business categories they are capable and competent in, so it’s important to partner with a PEO who understands your specific company needs.
Do they currently work with clients in the same or very similar trade as your company? If so, you can be reasonably assured that they have dealt with the types of questions or concerns that your individual company may have. This is critical to know at the outset to be sure the PEO is comfortable with the risk associated with the type of work your company does.
How long has the PEO been in business? This is very important to know early in the quoting process and gives you a good indicator of the longevity of the company. Does the PEO have a demonstrated history of adherence to the industry’s professional performance practices, including responsible financial management of its business? Check to determine if the PEO’s financial statements are independently audited by a CPA.
Is the PEO a member of NAPEO? (National Association of Professional Employer Organizations)
If so, for how long?