Get ready, Chicago insurance brokers!
The PEO industry has witnessed significant changes that may result in your clients exploring PEOs as an option for HR support and administration. Don’t worry; Tandem HR has got you covered! We have a surefire way for you to retain your book of business while continuing to keep 100% of your commissions.
When your 5, 10, or even 20 life companies first came to you for insurance benefits, you were most likely their only means of HR support. As they grow, they will need more and more support in the areas of payroll, employee relations, compliance, onboarding and termination processes, retirement and much more. As they research solutions, they may resort to one of the following choices: they can use an internal resource to act as an HR Manager, possibly even hiring a new employee to fill the role, or they can outsource administrative functions to a strategic partner, like Tandem HR.
Why are PEOs a more attractive option for your clients?
When comparing these two options, many businesses find they would benefit from vendor consolidation and increased buying power by outsourcing to a PEO. Additionally, they gain access to a full, professional HR department for a fraction of the cost. PEOs staff certified and dedicated experts to concentrate on the payroll, benefits administration, risk management, compliance, and employee relations.
By partnering with a PEO, your clients will gain a professional HR infrastructure. This allows them to compete with much larger companies for talent and potentially reduce their turnover by up to 14%. Through a PEO, clients will also acquire access to a full-service Employee Assistance Program, competitive group rates on workers compensation and unemployment taxes, a comprehensive retirement program, and will share employment liability with the PEO.
The list of benefits goes on and on, but right now you’re probably wondering…
PEOs have been around since the early 90’s. What is different in 2017?
The Small Business Efficiency Act is a new game changer. With the IRS recognizing and certifying PEOs, it is easier than ever for your clients to partner with a PEO. Laws will be written with this valued relationship in mind so that businesses can partner with a PEO at any time of year with no federal tax penalty, and they can take advantage of tax credits they were privy to outside of the PEO relationship. CPAs, and other professional consultants that work closely with your clients are learning more about PEOs, and champion them more and more every day.
“I firmly believe the current 5% Chicago market penetration will easily jump to 15-20% over the next five years,” says Tandem HR President, Bruce Leon, an industry expert that has followed insurance trends for more than 30 years. “Already in mature markets like Florida, Texas, and California, we see more than 25% market penetration.”
And now for the big question …
How can I stop my clients from leaving me for a PEO?
Did we mention that we had you covered? While most PEOs refuse to carve out insurance options, forcing your clients to adopt theirs, Tandem HR (the only IRS certified, and ESAC accredited CPEO headquartered in Illinois) works alongside insurance brokers. By partnering with brokers, we create a win-win-win situation. Clients receive much-needed HR administration to support business growth, brokers keep their book of business, and Tandem HR gains another partner in making Chicago the best place to work! Plus, our benefits experts offload administrative tasks that may bog down your week, like ID card replacement, claims questions, and onboarding and terminations. Now, you can focus your time and energy on consulting, advising and strategizing with clients.
Recognizing the need for additional HR support is key.
When clients are experiencing growing pains, are worried about employment law compliance, or have trouble attracting and retaining key talent, that’s the time to jump in. If your mission is anything like ours, you strive to bring innovative ideas and solutions to your clients before the competition. Tandem HR can help you identify clients in need. We will work with you to present the PEO value to your client to determine if our solution will enhance efficiencies and make financial sense.
If you are a Chicago insurance broker, we’d love to talk to you! Call Tandem HR at 630.928.0510 and ask to speak to a member of our sales team.