Guidelines for selecting a PEO or employee leasing service

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Tips for hiring new employees

1. Hire looking towards the future,
not at today’s needs. <more>

2. Have a good job description <more>

3. Legal issues <more>

4. Recruit <more>

5. Make a standard hiring process <more>

6. Interview smarter <more>

7. Good is good, and bad is
really bad <more>

8. Ask for references and do
background checks <more>

9. Match the job to the right person <more>

10. Evaluate and offer the job <more>

Guidelines for selecting a PEO or employee leasing service:

1. Make a list of the services and employee benefits you want and need.
These might include payroll services, workers' compensation management, human resources assistance and benefits administration.

2. Find PEOs that are licensed to operate in your state and a member of NAPEO, the National Association of Professional Employer Organizations.
There are companies who specialize in matching you with licensed PEOs for your state, or you can find listings in local telephone or internet directories. Make sure to ask if they are licensed for business in your state. The NAPEO website is www.napeo.org. They have listings of all members in every state. NAPEO members share a commitment to continuing education, professional development and the Association's Code of Ethics.

3. Find PEOs that are looking for your type of business.
You need a PEO that wants your business and will be a partner for success with you. Some PEOs cater to only specific industries.

4. Notify PEOs that you are in search of proposals and quotes. Give each PEO your list of requirements, benefits needs and workers' compensation claims history.
Each PEO will have a slightly different set of information they need from you, but these should be the basics to get started.

5. Collect quotes and proposals from PEOs.
Look at the similarities and differences between each PEO. Do they offer everything you want and need? Do they offer services you do not need or use? Will they custom fit the plan to fit your company?

6. Obtain credit, financial and industry references
If a PEO will not give you references and testimonials, move on. You don’t want to work with a company that will not let you talk to their clients. Check the PEO's credit references to ensure that they make all payments on time. A good PEO should be able to specify the ways in which it helped similar companies succeed.

7. Analyze, evaluate and compare PEO proposals. Make your selection.
Congratulations on making a smart choice for your business and employees!

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