In the quest to understand the decision-making process between a PEO and a traditional payroll provider, we reached out to top executives and HR professionals. From having better health benefits for employees to finding an all-in-one solution, we have compiled seven insightful responses to guide your decision-making process.
 

• Better Health Benefits for Employees
• Cost-Effective Options Won Us Over
• Extensive HR Services Assures Compliance
• Managing Multi-Jurisdictional Compliance
• Scalability Tipped the Balance Toward PEO
• Payroll Automation Led to Traditional Provider
• All-in-one Solution Sealed PEO Choice

Better Health Benefits for Employees

As our company has continued to grow, the owners and I have had a difficult time deciding whether to stick with our current payroll provider or switch to a PEO. However, after exhaustive research and dozens of introductory phone calls with various firms, we finally went with a PEO.

The primary decision factor for us boiled down to health benefits. The PEO we selected can provide our employees with better healthcare benefits at a lower cost compared to what we previously offered. Ultimately, we think this will help us attract and keep talent in the long run.

Janelle Owens, HR Director, Guide2Fluency

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Cost-Effective Options Won Us Over

The decision to choose between a Professional Employer Organization (PEO) and a traditional payroll provider can be complicated. It is important to consider several factors before making your final choice. One of the primary factors that influenced our decision was cost.

We compared the costs associated with each type of provider in order to identify which option was the most cost-effective for our organization. After researching, we found a PEO provided more comprehensive services than a traditional payroll provider at a more affordable rate. This made the decision to choose a PEO an easy one.

Martin Seeley, CEO, Mattress Next Day

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Extensive HR Services Assures Compliance

The choice between a professional employer organization (PEO) and a traditional payroll provider depends on several factors, such as the organization's specific requirements and priorities. The required level of HR support and expertise was a major factor that influenced our decision.

In our case, we chose a PEO because of the extensive HR services they provided besides payroll processing. Typically, PEOs provide a variety of HR services, including benefits administration, employee onboarding, help with compliance, and HR consulting.

Our company needed to outsource payroll and HR to streamline operations and maintain compliance, so this was helpful. We could free up internal resources and focus on strategic objectives by working with a PEO to access a team of HR professionals who could advise and support us on HR problems.

The PEO's knowledge of complex employment laws, employee benefits, and HR administration relieved our HR personnel and assured compliance.

Murat Yashar, Director, House of Worktops

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Managing Multi-Jurisdictional Compliance

We chose a PEO over a traditional payroll provider because our business operates in multiple states. The PEO's strength in handling multi-jurisdictional compliance convinced us.

Dealing with different state laws and regulations can be tough, but a PEO has the expertise and infrastructure to manage it all. This way, we don't have to worry about keeping up with each state's rules, taxes, and employment requirements.

A traditional payroll provider might struggle with the complexity, putting our business at risk of penalties. With a PEO, we can focus on growing our business while knowing that our HR and payroll are in capable hands.

Normand Chevrette, President and CEO, CME Corp.

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Scalability Tipped the Balance Toward PEO

In the infancy of our solar installation venture, the choice between a professional employer organization (PEO) and a conventional payroll provider was one we grappled with immensely. With our aspiration to grow rapidly, scalability tipped the balance in favor of a PEO.

I recall a particular instance that reinforced this decision. Our business experienced an unexpected surge in orders during a local renewable-energy campaign. Suddenly, we needed almost to double our workforce.

Had we opted for a traditional payroll system, the administrative burden of such an expansion would have been daunting. But, with the PEO's infrastructure already in place, we absorbed this growth with ease. This experience solidified the conviction that our choice of a PEO, with its inherent scalability, was indeed the right one.

Haya Subhan, General Manager, Solar Panel Installation

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Payroll Automation Led to Traditional Provider

We went with a traditional payroll provider because we didn't need all the additional services a PEO can provide. Instead, we have an in-house HR team that handles all the basic employee management functions; we just wanted to find a solution that would automate the payroll process so that HR didn't have to spend so much time managing it.

Corey Donovan, President, Alta Technologies

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All-in-one Solution Sealed PEO Choice

We were also looking for an HR technology solution and payroll, and the PEO offered all of that and more. It serves us as a nearly all-in-one solution for our employee management, including benefits and compliance management, besides payroll.

What we liked about the PEO was that it handled everything rather than us having to find separate solutions and then manage each one individually.

The PEO saves us time and gives us the peace of mind that everything related to people management is being handled by professionals.

Nihan Çolak Erol, COO, Wingie

Author Bio

Brett Farmiloe is the Founder/CEO and currently the CHRO of Featured. Brett is an SHRM Influencer and has also been a keynote speaker at several state SHRM conferences around the topic of employee engagement.

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