9 Things to Look for in a PEO

Mar 24, 2017

9 Things to Look for in a PEO

In the market for partnering with a professional employer organization (PEO)? If so, congratulations on one of the best decisions you’ll ever make for your small business! The next step is knowing where to start. There are so many things to consider, but this piece will help you identify your needs up front and compare PEO providers to see how they measure up. This blog introduces small business employers to the nine major things to look for in a reputable PEO.

9 Things to Look for in a PEO:

  1. Benefits plan sponsorship (access to health coverage where your employees live, dental and vision coverage, healthcare flexible spending account (FSA))
  2. Performance management support (organizational chart development, performance appraisals, and employee surveys)
  3. Payroll and employment administration (payroll processing, time and attendance tracking, and employment verification)
  4. Technology options (electronic employee records, online employee self-service center, and online benefits enrollment)
  5. Employer liability management (workers’ compensation coverage and administration, employment practices liability insurance (EPLI), and employee handbooks)
  6. Recruiting support (job description development, wage and salary surveys, and hiring process review)
  7. Assistance with government compliance (unemployment claims administration, FICA, FUTA, SUTA compliance, drug-free policies and administration)
  8. Training and development (employee certification tracking, leadership development, and sexual harassment training)
  9. Core and strategic HR services (strategic HR and succession planning, online, self-service HR resources, call center support, and direct phone/email access to HR specialist)


Many small business employers don’t realize every service that a PEO is capable of managing for a business business. Even though you may not need all of the above features and services, it’s important to know what is available. After all, a great PEO is flexible enough to let you add or discontinue services at any time. It’s suggested to use the above list to narrow down your selections, and continue to research the company — always asking for references before you make this big decision.

Diversified Human Resources (DHR) is the leading full-service HR solutions provider based in Arizona, with offices in Denver. Since 1996, DHR has served thousands of Arizona and regional companies with payroll, benefits, HR administration, retirement, and workers compensation solution. Contact us today and learn how easy it is to tailor a plan to upgrade your HR function and improve your bottom line.

Topics: PEO

Todd Miller

Written by Todd Miller

Director of Marketing, DHR

Todd leads DHR’s marketing department and is responsible for overall marketing strategy and execution. With nearly 15 years in the sourcing services and solutions space, Todd provides interesting insight on a variety of topics in this fast-paced and ever-changing industry.

Todd lives in Scottsdale with his two daughters and Collie/Shepard. One is a good boy.

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