I have been trying to help PEO’s understand insurance for a year. But hey, obviously, its a difficult subject and not everyone is going to get it. But PEO’s need love too.
I agree with Gill Fin about looking at the source of the article.
However, PEO’s can and do fill a need. Ten years ago PEO’s erroneously sold their solution on cheaper Workers Compensation and cheaper group health rates. When adverse selection caught up with those PEO’s most went in the tank. The smart PEO’s sold and continue to sell their solution on the value added HR piece, and the consolidation of vendors.
PEO’s can be helpful to start-up companies and companies that reach certain employee count thresholds. Often the decision comes down to hiring a full-time HR person or outsourcing to a PEO. PEO’s do cost money, so be wary of PEO salespeople who sell their solution as a way to “save money”.
I believe the ultimate goal should not be looking for ways to increase revenue in a soft market but to offer something to clients that could potentially really help them.
We have been rescuing groups out of PEO’s for years. Comp mod, one renewal trend fits all, cookie-cutter services. No, not a slanted, biased article at all…
Hey guys, I think you’re missing the point. This article is not about PEOs being a good or a bad thing for the market. It’s about marketing; understanding and responding to the needs/desires of our clients. In that respect, PEOs seem to be doing a better job — they are growing by 20% and we’re not. We can take a lesson from them.
Isn’t this whole PEO thing exactly what started CNA’s slide back in the 90’s? Someone explain where this is really headed?
I have been trying to help PEO’s understand insurance for a year. But hey, obviously, its a difficult subject and not everyone is going to get it. But PEO’s need love too.
Source: The Total HR Network
http://www.totalhrnet.com
I agree with Gill Fin about looking at the source of the article.
However, PEO’s can and do fill a need. Ten years ago PEO’s erroneously sold their solution on cheaper Workers Compensation and cheaper group health rates. When adverse selection caught up with those PEO’s most went in the tank. The smart PEO’s sold and continue to sell their solution on the value added HR piece, and the consolidation of vendors.
PEO’s can be helpful to start-up companies and companies that reach certain employee count thresholds. Often the decision comes down to hiring a full-time HR person or outsourcing to a PEO. PEO’s do cost money, so be wary of PEO salespeople who sell their solution as a way to “save money”.
I believe the ultimate goal should not be looking for ways to increase revenue in a soft market but to offer something to clients that could potentially really help them.
Required HR reading: “PEO’s: A sloppy way to get out of running your own business or the decline of the roman empire?”
My entire book is based on selling the services of PEO’s to various small business people.
There are good PEO’s and Bad PEO’s, experience in the industry can help you determine good from bad. (I have twenty years)
If you wish to talk about PEO, drop me an email.
Michael@empleasemarketplace.com
Thanks…..
We have been rescuing groups out of PEO’s for years. Comp mod, one renewal trend fits all, cookie-cutter services. No, not a slanted, biased article at all…
Hey guys, I think you’re missing the point. This article is not about PEOs being a good or a bad thing for the market. It’s about marketing; understanding and responding to the needs/desires of our clients. In that respect, PEOs seem to be doing a better job — they are growing by 20% and we’re not. We can take a lesson from them.