PEO
Partnering with the right professional employer organization (PEO) can significantly ease your business's administrative workload. However, not all PEOs are created equal. If your current provider isn’t meeting your expectations, it might be time to assess their performance and consider switching.
7 Signs to Switch PEO Providers
Below are five key signs that your PEO might not provide the best-in-class service your business deserves.
1. Lack of Flexibility in Services
A one-size-fits-all approach simply doesn’t work for most businesses. If your PEO insists on rigid processes that don’t align with your unique needs, they fall short. Your provider should accommodate your individualized requirements, tailoring their services to handle the specific administrative and HR tasks that are crucial to your operations. Flexibility is essential in areas like benefits management, payroll processing, and compliance.
If your PEO isn’t adjusting to your specific goals and demands, they aren’t delivering optimal value.
2. Unexplained or Non-Transparent Billing
Hidden fees are a common frustration with some PEOs. If your provider’s invoices include vague "administrative costs" or surprise charges, trust could be broken down. Transparent pricing is a hallmark of a reputable PEO. They should clearly outline the costs for each service they provide, giving you a complete understanding of your monthly bills. If invoices are inconsistent or filled with unexplained charges, it’s a warning sign that your PEO isn’t operating with the integrity your business deserves.
3. Lack of Compliance Expertise
Staying compliant with employment laws and regulations is critical for any business. If your PEO struggles to provide expert guidance on compliance matters or fails to keep your company informed about changing laws, it can expose your business to significant risks. This lack of expertise is a clear indicator that it's time to explore options with a more reliable partner.
4. Poor Alignment with Your Business Goals
A PEO partner should do more than handle administrative tasks. They should also align with your broader business objectives and actively support your growth. If your current provider lacks an understanding of your goals or fails to offer strategic benefits like HR compliance support or workforce planning, they aren’t fulfilling their potential.
The right PEO will work closely with you to contribute to your success, adapting its expertise to help you stay competitive in your industry. If this isn’t happening, it’s a sign that you’ve outgrown your provider.
5. Limited Access to Technology and Tools
If your current PEO is not leveraging modern technology or providing tools like employee self-service portals or advanced reporting systems, it may hinder your company’s efficiency and growth. A lack of innovative solutions can signal that your PEO is not keeping pace with industry standards or your evolving business needs.
6. Time-Consuming Payroll Processing
One of the key roles of a PEO is to simplify processes like payroll management. However, if your current PEO requires you to spend excessive time on manual tasks for payroll processing, it might be time for a change. For instance, payroll processing that takes up to two days with their previous PEO is not something businesses should put up with.
At Lone Star PEO, we leverage advanced, integrated systems that streamline the entire process, cutting down payroll time to as little as 20 minutes. This lets you focus on core business activities rather than getting bogged down with administrative workloads. Don’t compromise on efficiency when a faster, more innovative solution is available.
7. Excessive Hidden Fees and Charges
Price transparency is non-negotiable when working with a PEO, yet many providers fail to deliver this. One common trend is PEOs charging “a la carte” fees for basic services, inflating the overall cost with surprise line items that can cost thousands or tens of thousands of dollars per year in unexplained extras.
Lone Star PEO prides itself on keeping our services inclusive with upfront pricing. While a few additional fees may apply for specific services, most of what you’ll need is included at no extra cost. Reducing hidden and unnecessary expenses, coupled with our highly competitive base pricing, has allowed some clients to save over $60,000 annually by switching to us. If cutting back on excessive charges while maintaining top-tier support sounds appealing, it’s time to reconsider your current provider.
Why Lone Star PEO is the Right Partner
At Lone Star PEO, we pride ourselves on delivering unmatched HR management and compliance expertise. Our team stays ahead of the curve on employment laws, ensuring your business remains protected and follows best practices.
With a commitment to personalized support, we handle your HR needs efficiently so you can focus on growing your business. If you're ready to partner with a PEO that puts your success first, contact Lone Star PEO today to learn more about how we can help you achieve your goals. Don’t settle for subpar service when your business deserves better.
Make the switch to a PEO that works for you.
