Small businesses often turn to PEOs for cost-efficient HR resources and employee benefits, typically found in larger corporations. However, not all PEOs offer the same rates, and without proper negotiation tactics, you could end up overpaying.
- Shop Around: Explore multiple PEO options to gauge competitive pricing. Many PEOs are willing to offer pricing concessions to secure new clients, so don’t hesitate to negotiate for favorable rates.
- Prioritize Financials: Before committing to a PEO, understand the costs associated with their services, technology, and personnel. Avoid making emotional decisions by aligning their offerings with your budget.
- Comply with Underwriting Requirements: Providing comprehensive information ensures accurate quoting. Use Non-Disclosure Agreements (NDAs) and reference-based diligence to maintain privacy while meeting underwriting criteria.
- Understand Price Locks: Consider the value of price locks, which can be more beneficial than simple discounts. Locked-in medical renewals, for example, offer stability and predictability in costs.
- Utilize Professional Assistance: Engage third-party experts like PEO Spectrum to streamline the shopping process and ensure adherence to best practices. Benefit from their industry insights, access to competitive pricing, and ongoing support throughout your PEO relationship.
In conclusion, educating yourself on PEOs and employing effective negotiation strategies can lead to significant cost savings. By following these tips, you’ll be better equipped to secure favorable pricing while accessing valuable HR resources and benefits for your small business.