How to Pick a PEO Service That Suits Your Business Needs


When in business, it is important that you pick a team that isn’t only “good,” but you want a team that can work together well and can come together to create innovation and solutions to move projects forward. If you aren’t well-versed in the laws of California or are lacking the right team in HR, looking into PEOs in California is a great option. In this article, we are going to talk more about how to pick a PEO service in California that suits your business needs.

Defining Your Needs

Before you jump in head first, you need to figure out what your needs are. Having a clear definition of your needs will allow you to make decisions faster while still making wise decisions for your company. You may want to put these down in a document, write them on a whiteboard or put them in a slideshow so you can come back to them in the future or share them with your team.

How do you want to work with the PEO?

Before you start working with a PEO, you need to understand what their expectations are and how they work. Some companies are very hands-on and take care of everything, others position themselves more as a resource and available to consult with your company, and some will meet you in the middle to be both high tough and self-service depending on your needs.

Besides the way that you are going to work together, you also want to determine which parts of your business you need the PEO’s help. The core of work that is done by these companies is human resource work. You may also need help with benefits admin, worker’s comp and risk management and payroll admin. Make sure the PEO you are considering working with offers all of the services that you need. If you can find a one-stop shop that will help you with all of your challenges, this will allow you to decrease confusion and increase productivity.

Ask Questions That May Be Uncomfortable

If you’re new to business are don’t enjoy asking the hard questions, you need to get used to it now. If you can’t ask the hard questions, you are going to have a difficult time in business. Here are some things that you need to ask your PEO before you bring them on.

What is your unbundled fee schedule?

Instead of looking a couple of numbers on a sheet and taking what you get with your pricing, make sure that you ask to see an unbundled fee schedule that will break down everything for which you are paying. If you see something on the list that you aren’t sure about or that you don’t need, you can always ask them to eliminate that part of the service or explain what the charge is.

If you look at a bundle fee schedule, you will not get the full break down and may be paying for things that you are not in need. Don’t take the PEO company’s word. Make sure that you do proper checks.

How long do you keep clients?

You want to find out how long their clients normally stay with them. If they have a track record of only keeping clients for a short time, this might be a sign that they don’t work well with others, or it could be something else altogether. If you notice a lot of short stays with the company, don’t be shy to ask about why their clients aren’t staying on for longer periods of time. They may have had some issues outside of anything the PEO company could do, and if you don’t ask, you will never know.

Company Track Record

As you move forward with your due diligence, you should look deeper into their track record. Has the PEO worked with companies that are similar to your company in size or needs? If they have little or no experience with your type of business, you want to ask further questions to ensure they understand how to work with your specific business.

Different industries require attention to different laws and regulations so ensuring that your PEO is well-versed in these areas is important. If they haven’t had experience, find out how they plan to research and make sure they are up to date and how they will make sure your company is compliant.

Ask for Referrals

Speak with some of their happy clients. They shouldn’t have anything to hide so ask to speak with a couple of their clients to see what their experience has been with them. You can also ask for success stories that might not be willing to take the time out to talk. The more proof that you have that this is a good company, the better.


Now that you understand how to choose a great PEO for your company, you can take the weight of the world off your shoulders. Instead of dealing with challenges in HR, you can get back to business growth and the areas in which you enjoy working. Having a group of professionals that understand how to keep your company compliant and moving forward with happy employees will allow you to have peace of mind so that you can focus on continuing your business and building a great place to work in California.

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About the Author

Gary J. Wilkinson

Gary Wilkinson, internet marketer in UK, England

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