Health insurance is one of the essential and necessary benefits businesses provide their employees. With the job market being fierce, benefits can be a deciding factor if an employee takes a job with you or another organization. It is essential to be knowledgeable about the health insurance options and what partnership will work best for you when you need to make the final decision.
Professional employer organizations (PEOs) can step in as lifesavers with the plethora of services they offer, including benefits administration and insurance coverage. A PEO can streamline the whole process of having access to health plans through their benefits broker that will be beneficial to your employees and your business.
It’s normal to be at crossroads when deciding whether to opt for your own fully insured plans or employ a PEO’s services. It’ll be beneficial to know why PEOs come in handy and why they might be the best idea based on your circumstances. Here are the pros:
As they work with a large group of employees, PEOs can provide access to benefits your employees would otherwise receive working in a larger company, even as small business employees. Your business will have access to more options and more competitive health insurance plans due to your PEO’s benefits broker. For employees with various needs, they will see this as a great benefit to their workplace experience.
You won’t have to deal with the issues and headaches that come with health insurance administration. By working with a PEO, there’ll be better ways to manage and streamline the administration of health insurance so that it is off your plate and you can focus on the more strategic elements of the business. From the initial selection to the enrollment and yearly renewal, you can count on the PEO to thoroughly handle the entire carrier process and relationship. No angry emails here, my friend.
PEOs provide support if you decide to make changes as they are experts in managing group health insurance. There won’t be any unpleasant surprises as they will ensure they provide you with any necessary information on what to expect while doing their routine checks and if there are changes how it may affect costs and plan administration. It’s like having a benefits bodyguard with you 24/7 – always protected.
Benefits are crucial to employees’ total compensation package as this is one of the things they look out for in a company. Through the excellent service your PEO can provide, your employees will be happier, satisfied, motivated, and more productive, meaning higher employee engagement, satisfaction, and workplace culture for your business.
Though PEOs come with the advantage of having variety, you need to ensure it’s the right fit for you and your workplace. Here are some other elements to consider when making this decision:
They say the greatest things in life are free, but unfortunately, that is not the case with a PEO service partner. With a PEO, there are required administrative fees that need to be paid to support their services. You will need to commit to charges per month, per employee, or a percentage of total payroll. Depending on your budget, you can find an affordable PEO provider and provide the value to your business that you need.
With the PEO securing the benefit options on your behalf, you may have less of a hand than you would otherwise. If the PEO decides to switch plans, there’s very little you can say and do, even if you have grown accustomed to any health insurance plan provided by them. With some service providers, they offer a range of flexible options so that you only pay for what you need and nothing more. Finding that prince charming of a provider is key to ensuring that you get your glass slipper.
Before making a decision, you need to be aware of what every option will entail. Interestingly, it’s hardly the case of one being better than the other as a lot depends on your business’s specifics. Finding a PEO that will meet your business needs can be tasking and tricky. Still, the right service provider will ensure you are clear on all the benefits and lay out the choices available to feel comfortable and understand the decision you are making.