Some insurance agencies and/or agents still view PEOs as their adversary and not their ally. I would truly appreciate input as to why?
I get it---when an agency has not aligned itself with a credible, professional PEO broker and they lose business to a PEO, they get angry. But whose fault is it really? PEOs have consistently gained market share over the years and for just reasons. PEOs do not sell workers' compensation insurance, but rather an entire "package of value-added services" that most businesses, large and small, are in desperate need of in today's ever-changing, complex business world. This "package" just so happens to include workers' compensation insurance as one component.
The value-added services also include, but are not limited to, regulatory compliance (federal & state), unemployment management, a vast array of benefits and/or administration of the client's existing benefits, loss control & safety, payroll administration, tax pay & file (both federal & state 940s & 941s), W-2s at the end of the year, Human Resource Consultations (the broadest category of them all), Labor Law & Employment Law Consultations, etc.
The PEO service model is a vast and complex model that few really understand completely. As a result, many miss the real thrust of the value-added services. PEOs contractually assume most of a businesses’ "non-productive", non-revenue-generating" employer-mandated tasks. This transition frees up the employer's time, energy, and available money, and allows the business owner & their management team more time and money to grow. At the same time, they are able to concentrate on what they got into business to do in the first place, which was NOT dealing with a growing slew of government regulations (both federal & state) as they relate to having employees. These tasks all have a negative impact on a company’s bottom line!
We, like all reputable brokers we know, welcome your questions. We are here to help agencies, agents, and prospective clients make "informed" decisions as to whether or not a PEO service model is right for them.
Let us hear from you----we value your input!
Steve W. Brown, Vice President of Sales & Marketing
PEO Brokers Group
