What are the down sides about using a PEO (Professional Employer Organization)? What are the limitations and what issues might come back to haunt us over time if we contract with a PEO?
• Group health insurance and PEO purchasing power
• Workers’ compensation and PEO purchasing power
• PEO Cost versus true value
• Loss of control of essential processes
• Outside influence on your company culture
• Loss of institutional knowledge
• Resistance from employees
Often the disadvantages and advantages alike are contingent upon your service agreement contract and negotiations with the PEO you work with.