How to evaluate a PEO without getting sold to
The sales process for most PEOs is designed to prevent comparison. Here's how to force it.
PEO sales cycles are built around momentum. You get a presentation, then a proposal, then a timeline with a deadline. The goal of the process is to get you to a decision before you've had time to think about what you're actually buying.
Slow it down deliberately
The first thing to do is ignore the timeline. There is no deadline. Any PEO that tells you the pricing is only valid through the end of the month is using pressure tactics. A real partner will still be there after you've done your diligence. If they won't wait, that's useful information.
Separate the product from the pitch
Ask to talk to current clients. Not testimonials. Real clients you can call. Ask for three, and ask for clients who have been with them for more than three years. New clients are still in the honeymoon. Clients in year four know what the service actually looks like.
Ask for the error history
Every PEO has had payroll errors. Ask how many they had in the last year and how each was resolved. The answer tells you about their process and their transparency. A PEO that can't answer this question cleanly either doesn't track it or doesn't want you to know.
Price the full stack
Get a list of every fee. Per-employee fees, platform fees, benefits administration fees, onboarding fees, off-boarding fees. Build a spreadsheet. The headline per-employee rate almost never tells the full story. Ask what you'd pay in year two if your headcount drops by ten percent.
Evaluate the exit
Before you sign, understand how you leave. What's the notice period? What data do you get back and in what format? What happens to your benefits contracts? A PEO that makes it easy to leave is confident you won't. One that makes it hard is planning on your inertia.
You call. We answer.
And if we're not the right fit, we'll tell you.