What to Expect When Transitioning to a PEO

Change is difficult, especially when it affects your work, your livelihood, the business you’ve worked so hard to build – or all of the above. So once you make the decision for your company to partner with a professional employer organization (PEO), there are a number of considerations to keep in mind so you can ensure a seamless, stress-free transition.

Notes to Be Mindful of When Shifting to a PEO

Your people come first.

This business decision impacts you, of course, but above all else, it may hit your employees hard at first. Create a dedicated transition team comprised of your best and most trusted leaders. Their first and foremost job should be communication: explaining to all employees why you’re partnering with a PEO and how it will benefit them.

• Alert employees to any upcoming changes that will affect them, so no one is caught off guard.
• Maintain open lines of communication. Avoiding disruption demands that communication is a priority. If you’re not sure you’ve done enough, err on the side of overcommunicating. Now more than ever, be sure managers have an open-door policy, so employees can come to them with questions or concerns. Your PEO staff members will assist; in fact, it’s a good idea to have them on hand (or at least readily available via Facetime, Zoom or a similar platform) so employees can get to know them right from the start.

Own it.

Here’s where your transition team really earns their stripes. Lead, guide, inform and empower them as you own the relationship with your new outsource provider. Your goal is to ensure that the terms of your PEO agreement are thoroughly implemented, to the benefit of everyone involved. Remember, you’re working toward:

• A transparent transfer of services to your PEO. The end user, aka your employees, should experience little to no disruption and all your customer service levels, including those geared to employees, should be maintained at their current or a higher level.
• Treating your employees with respect throughout the transition. Working practices and procedures may need to be modified and new ones established. Just be sure these are defined and communicated and that tasks and scopes of work are agreed to by all parties involved.

Here’s another tip: Document and keep records of every step and process and make this information accessible to all affected parties. This will help minimize any ambiguity or uncertainty.

If it all sounds a bit daunting, that’s because it is. But keep in mind, you’re not alone. And keep your eyes on the prize: the end results of a PEO partnership include better employee benefits, less HR admin work for you and your current team, effective payroll management, mitigated risk and better safety programs, and more.

Want to Learn More About the Significance of PEOs?

For additional information, resources and guidance when it comes to PEO partnerships and other HR outsource relationships, reach out to Key HR today.