At Sixth Man Employer Services, we recognize that the concept of outsourcing to a Professional Employer Organization (PEO) can be intimidating for many business owners. The idea of entrusting critical aspects of your business—such as payroll, benefits, and compliance—to an external partner often brings up a host of concerns.
We also understand what qualifies us as experts in this field and how our unique team dynamic and extensive experience can help alleviate these fears and ensure a successful outsourcing experience.
What Drives the Fear of PEO Outsourcing?
1. Uncertainty and Lack of Understanding
Concern: Many business owners are unfamiliar with how PEOs work and what the outsourcing process entails. This lack of knowledge breeds apprehension.
Solution: At Sixth Man, we prioritize education and transparency. We provide clear explanations and detailed information about how PEOs operate, what to expect, and how they can benefit your business. Our goal is to demystify the process and build your confidence.
2. Cost Concerns
Concern: There is a fear that the cost of partnering with a PEO may outweigh the benefits. Business owners worry about hidden fees and whether they’ll truly save money.
Solution: We offer detailed, transparent proposals and emphasize how PEOs leverage their buying power to provide cost savings on benefits and insurance. By showcasing the financial advantages and avoiding hidden costs, we help you make a well-informed decision.
3. Loss of Control
Concern: Outsourcing critical HR functions can feel like losing control over important aspects of the business.
Solution: We emphasize that a PEO acts as a partner, not a replacement. You maintain control over core business decisions while the PEO handles administrative and compliance tasks. Our team ensures that roles and responsibilities are clearly defined and that your business’s unique needs are respected.
4. Doubts About Service Quality
Concern: Some employers question whether a PEO can deliver superior service compared to their internal team.
Solution: Our team leverages its extensive experience to match you with a PEO that excels in service quality. We provide evidence of successful PEO partnerships and demonstrate how these organizations have positively impacted other businesses.
5. Fear of Contractual Commitment
Concern: Business owners worry about being locked into a contract with a PEO and the challenges of switching if they are unhappy.
Solution: We ensure that contract terms are fair and transparent. Our transition support minimizes disruption and provides a clear exit strategy if needed. We’re committed to making the outsourcing experience smooth and satisfactory.
6. Impact on Business Operations
Concern: The potential disruption to existing operations during the transition to a new PEO can be a major concern.
Solution: We work with you to create a detailed transition plan that addresses potential risks and ensures continuity. Our experience managing transitions helps us provide a seamless shift with minimal impact on your operations.