Tuesday, September 16, 2014

Employee Leasing - Why Use A Broker

There are many reasons to use a broker to help you navigate through all the complicated aspects of the employee leasing (PEO) industry. Many of those reasons are the very same reasons you use an agent to purchase insurance. Reputable brokers will know their client's needs and the leasing companies' backgrounds. They will also be able to get their clients the best pricing, and they provide many free services to their clients.

Reputable brokers are interested in building lasting relationships with their client's, which means a broker must have a strong working knowledge of the client's industry and what services are expected from a leasing company. Because of this, many brokers will specialize in only one or two industries which allow them to become expert consultants to their client's companies. Brokers can often offer their clients advice and guidance that is specific to their industry and not a one size fits all solution.

Reputation is everything, so brokers will do their homework; they know the leasing companies they represent, as well as the ones they don't and more importantly why. A professional broker will only represent the proven, well-established, reputable leasing companies. After all, they know that the last thing a business owner wants is to entrust their company's tax reporting and workers compensation insurance with a company that will only take their money, disappear, and leave the company stuck with a large bill from the IRS. Other potential issues the broker wants to avoid are having a client shut down by the state insurance commission because the employee leasing company is distributing bogus certificates of insurance or worse yet, a client having a worker's compensation claim only to find out that they don't actually have coverage and has to pay for the medical expenses and lost time on their own.

Another consideration for using a PEO broker is that they work for their clients not the leasing companies. This gives them the power to negotiate on behalf of the client and get the best price possible. Additionally, most brokers will represent more than one PEO and the leasing companies know it. This forces the leasing companies to be aggressive with their pricing in order to "win" the clients business. Another benefit is that the broker will submit their client's company information to multiple PEO's at once saving the client the time and hassle of shopping for the best rate. Best of all, though the broker works for the client, their service is often free to use; the PEO will pay a small finder's fee to the broker for bringing the business to them.

A PEO broker often works as the main point of contact for their clients. They will get between the PEO and the client to ensure a swift resolution to any issues that may arise. The broker's ability to move a client that is unhappy with a leasing company is more than enough motivation for the PEO to provide a speedy response in order to maintain their relationship with both the client and the broker.

Another service often provided by the broker is handling the paperwork. This service is often provided for free by the broker, however, the PEO will normally charge the client. One of the most time consuming aspects associated with enrollment; is completing the client's employee applications. In a best case scenario, the dedicated broker will sit with each employee to complete and sign the enrollment form as well as ensure proper completion of the W-4's and I-9's. It is the broker's responsibility to make the process easy for the client and do so in a timely and efficient manner.

As you can see there is no need to go through this process alone and in fact there are many benefits to using a broker to help you find an employee leasing company. The reputation of the broker is on the line, they will look out for what is in their client's best interest and they will help make a smooth transition into outsourcing their client's HR needs.