PEO Spectrum Inc.

Yes. Often our clients are in the middle of shopping PEOs when they realize how much time it will take, and how complicated the buying process can be. We live for the opportunity to demystify the PEO industry for clients and make the process safer, faster, and ultimately better.

Large Companies: If a customer utilizes a PEO’s multi-employer health policy 99.9% of the times they will not share medical claims history with the client. This makes it very difficult to leave a PEO and find a stand-alone health insurance policy because when a company has 100+ employees medical claims history is a critical element of the underwriting process. There are certainly work-arounds but it creates difficulty. All Companies: All vendors can do a poor job. Since 2009 we’ve worked with many 1000s of PEO customers. There are all-stars and duds at every PEO. All PEOs can provide a wicked pricing increase. As is the case with all vendors, the best thing a client can do to avoid issues is to increase their education level on the industry they are buying in; get multiple quotes from vendors, demo the technology, meet the service people, and utilize advice from experts and peer businesses who have been there done that before.

Health Insurance: Through buying in bulk and regulatory arbitrage PEOs can often save a client 40% on their health insurance premiums. Workers Comp: Through buying in bulk, safety management, and risk reduction methods PEOs can often save a client 25% on their workers comp premiums. State Unemployment Tax: Although this is becoming less prevalent, PEOs can lower a companies SUTA costs through utilizing their larger, more stable State Tax ID #s. Vendor Consolidation: The integrated HR platform that PEOs provide can displace an assortment of non-integrated vendors such as 401(k), HRIS, payroll services, labor attorneys, compensation studies, performance reviews, etc. Streamlining Processes: Often a PEO’s services can allow less people to do more. It is a myth that if you hire a PEO you can let go of all internal HR resources. However if you have an HR department of 5, perhaps it can operate with 2-3 while working with a PEO.

PEO Spectrum has the ability to compare every PEO in the country. We constantly monitor the services, transparency, accreditation, and stability of PEOs and our clients often work with the top 100 PEOs. If a PEO refuses to work with “brokers” (the exception), we can still guide our clients on procuring their own quotes and we will simply add the quote to our PEO Comparison process so that the client can compare all PEOs on an even playing field.

No. PEOs have notoriously high attrition rates in their direct sales force which leads to very high customer acquisition costs. Often newly hired PEO salespeople (and they’re not inexpensive!) don’t make it to their 2nd year of employment because although PEOs are becoming more popular, it is still very difficult for salespeople to identify qualified customers for their specific PEO and ultimately win their business. Conversely, PEO Spectrum offers PEOs free business development services until they actually gain a customer. In fact, some PEOs have abandoned a direct sales force altogether and rather develop business through channel sales and referrals. Combine this with our proprietary methodology to create competition for our client’s business and our discount programs with PEOs and clients consistently pay less with PEO Spectrum.

PEO Spectrum’s primary compensation are referral fees from Professional Employer Organizations (PEOs). For clients that use our PEO Comparison service and end up working with a PEO, whichever PEO wins that particular client’s business pays PEO Spectrum a referral fee. This usually means that the salesperson of the winning PEO receives less commission, but ultimately it is a win for the PEO because they have a new client. If a client utilizes our services but doesn’t work with a PEO, the service is still absolutely free.