7 questions to ask when choosing a PEO.

Position::Human Resources - Professional employer organization - Brief Article

Contracting with a professional employer organization (PEO) to handle all of a company's human resource functions is a viable solution for many businesses. PEOs are full-service human resource organizations that manage the day-to-day administrative functions of small and medium-sized companies.

Before you enter into any agreement with a PEO, ask these questions:

  1. How long has the PEO been in business and does it provide references?

  2. Does the PEO have fully insured benefits (medical and workers' comp)? Are the benefit plans offered properly funded and backed by a reputable insurance company?

  3. Does the PEO have a stable financial history?

  4. Does the PEO have a license, if it operates in a state with licensing laws?

  5. Is the PEO accredited by the Employer Service Assurance Corporation (formerly the Institute for the Accreditation of Professional Employer Organizations)? This is an independent body that is nationally recognized for its establishment of professional responsibility standards...

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