With a number of professional employment organizations (PEOs) offering their services across the country and locally, it is important for businesses to research the alternatives and choose the PEO that best meets their needs.
The Institute for the Accreditation of Professional Employer Organizations (IAPEO), of Little Rock, Ark., advises companies to do their homework before signing on the dotted line.
The National Association of Professional Employer Organizations (NAPEO) offers the following 12-point checklist:
- How long has the company been in business?
- How many clients does the company service? How many employees?
- Will the company furnish the names of clients you may contact?
- Will the company furnish the names of clients that are no longer using its services?
- Who is the carrier for the health plan the company offers?
- Are the health benefits fully insured or are they partially self-insured?
- What percent of the company's clients renew their contracts?
- If the relationship is unsatisfactory, how quickly can it be terminated?
- Is there an enrollment fee?
- What will be the cost of the service (in dollars) per pay period?
- Is there a requirement for an escrow deposit?
- Will the leasing company have a person come to the office to explain this change to existing staff?
Source: Atlanta Business Chronicle, January 8, 1999.
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