While Professional Employer Organizations (PEOs) can be a great solution for small businesses, there often comes a time when companies outgrow them. But how do you know when it's time, and what's involved in the transition?
🤔 Why companies leave PEOs:
• Significant benefits renewal increases
• Headcount growth leading to more complex needs
• Expanding in-house HR capabilities
🔄 Steps to transition off a PEO:
- Implement a new HRIS and payroll system
- Partner with a benefits broker to design a new package
- Transfer employee retirement accounts
- Re-hire employees under your company
- Register with state and local authorities
- Develop new HR policies and employee materials
💡 Pro Tip: Some PEOs allow partial transitions. Consider moving certain functions off (like insurance benefits) for a smoother process.
🚨 Remember: Transitioning off a PEO is complex, but with proper planning, it can lead to more tailored solutions for your growing business.
Questions about benefits during or after a PEO transition? Let's connect!
