Ring the Alarm: Signs Your PEO Relationship is On the Rocks

February 12, 2024  |  Denise Gelfand

Does the chemistry with your Professional Employer Organization (PEO) feel off these days? 

Here are a few compelling reasons why a business should consider breaking up with their PEO in 2024.

#1: It’s Not You, It’s Me 

Businesses evolve just like relationships. 

Once a company’s needs outgrow the capabilities of their PEO, moving on is the right decision. 

This typically occurs when headcount reaches 50+ employees. 

While using the PEO made sense as a startup or small business, continuing the relationship after growth isn’t in the organization’s best interest as the expense outweighs the benefit.

#2: The Spark Is Going Out

Just like human relationships, the ‘Honeymoon Phase’ happens all too often with PEO providers as well. 

The shine wears off, the good deal disappears, and soon enough… so does your rep or service team. 

Fair rates and stellar service are essential given the number of critical business functions managed by the PEO. 

Subpar service, unresponsiveness, and lackluster provider-client relationships are all valid reasons to leave a PEO for more cost-effective, efficient, and responsive alternatives.

#3: Fading Perks, Missing Benefits

Small workforces might see value in a PEO relationship, but perks can quickly fade after growth.

As a business scales, the ‘one-size-fits-all’ model for employee benefits becomes a disadvantage and underserves the needs of an evolving workforce.

Leadership has limited capacity to influence their employee experience when PEOs dictate on-boarding, off-boarding, company handbook, various policies, and standard operating procedures.

If the PEO is in misalignment with company culture, it’s time to explore new avenues.

Breaking Up is Hard to Do… Or is it?!

It’s true. Exiting a PEO is an intricate process, but it doesn’t have to be messy or overwhelming. 

A PEO exit consultant can help navigate each step and provide guidance to ensure a smooth transition into a positive and fulfilling post-PEO future.

Contact us or reach out to PostPEO at hello@postpeo.com and explore whether ending your PEO relationship is the positive change your business needs in 2024.

Post PEO Logo