Did your PEO just hit you with a rate increase? Here’s the truth you need to know—you’re not trapped.
Too often, small and medium-sized businesses (SMBs) feel like they’re locked into their Professional Employer Organization (PEO) relationship until renewal time. But the good news is, you’re not. You have options, and figuring out the best one just requires the right strategy—and the right advisor.
Here’s a step-by-step breakdown of what you can do if your PEO increases your rate and how partnering with a PEO broker could save you time, headaches, and, yes, money.
Why PEOs Aren’t Just a “Set It and Forget It” Solution
PEOs provide SMBs with invaluable support. From managing HR and payroll to offering access to big-business-level benefits, a reliable PEO can help your organization run more efficiently. Many businesses report cost savings on health insurance and workers’ compensation, along with reclaiming precious time that would otherwise be spent juggling HR admin tasks.
However, all that value can come at a higher price—quite literally. If your PEO decides to raise its rates, it might suddenly feel like the scales are tipping, making you wonder if their services are still worth the cost.
And that’s where the misconception lies. You’re not stuck with a single PEO—or even a PEO at all.
You Have Options—and They’re Better Than You Think
A PEO rate increase doesn’t have to mean a no-win scenario. Whether you’re facing an unexpected hike or a gradual uptick over time, here’s what you can do next.
Evaluate What You’re Paying For
When rates increase, it’s time to ask tough questions:
- Are you getting the full range of services you were promised?
- Are you leveraging all the benefits your PEO provides?
- Is their cost increase justified by the level of value you’re receiving?
A strategic review of your PEO’s offering can help you determine whether it still aligns with your company’s priorities and budget.
Understand That You’re Not Locked Into One PEO
Many SMBs don’t realize that they’re allowed to explore other options—even outside the renewal period. A PEO broker, unlike a salesperson representing one PEO organization, works across the market to connect you with solutions tailored to your needs.
Your current PEO might not meet your needs anymore, but that doesn’t mean all PEOs are off the table. Brokers can uncover competitive options where the services better match your goals and your budget.
Consider Whether a PEO Is Still the Right Fit
Here’s a surprising truth—sometimes, the best option isn’t switching to another PEO. It might be moving away from PEOs altogether.
A PEO broker’s role isn’t just about “selling” PEOs. Instead, they evaluate your business’s unique needs, providing unbiased guidance. They might recommend alternative HR solutions or direct engagement with benefits providers, depending on what’s ideal for your company.
The Benefits of Working with a PEO Broker
Navigating the world of PEOs can be complex and overwhelming—especially when you’re busy running your business. This is where a PEO broker steps in as your advocate, offering unmatched expertise and insight.
Top Benefits of Consulting with a Broker
Market Expertise
PEO brokers know the ins and outs of the market, including which providers offer the best rates, services, and flexibility.
Tailored Solutions
Brokers focus on your business’s needs. Whether it’s cost savings, better benefits, or alternative HR strategies, they’ll pinpoint the solution that makes sense for you.
Cost Savings
Switching PEOs (or walking away from them entirely) can unlock significant savings. Brokers often have access to negotiated rates or can connect you with solutions that better fit your financial goals.
Streamlined Process
By handling the comparison and negotiation process, brokers save you from wasting precious time on research and administrative hassle.
Don’t Pay More When You Don’t Have To
Here’s the exceptional thing about working with a broker—they’ll never push you into something that doesn’t make sense. If sticking with your current PEO is the best move, they’ll tell you. If stepping away entirely will save you the most money, they’ll recommend it.
Make the Right Move for Your Business
Facing a PEO rate increase is frustrating—but it’s also an opportunity to reassess and explore new possibilities. With the guidance of a PEO broker, you can find better options that align with your company’s goals and budget.
Don’t settle for rates that don’t work for you. Book a consultation with us today and get the unbiased insight you need to make the smartest decision for your business.
