How to Talk to Your Employees About PEOs

So, you’re either considering working with a PEO or you’ve already made the decision to take the leap (if so, congratulations!). You know it’s a smart move, but it’s important that your employees do, too. After all, they’ll be the end-users in the PEO process, which makes their understanding of the benefits that come from working with a PEO as important as your own.

Your shift to a PEO is an opportunity not just to streamline your own operations, but also to strengthen your relationship with employees and their role with your company.

First, Communicate Why

When you handle your own payroll, benefits, and more, an employee can go straight to you with a problem. It’s comforting to know that when an issue comes up, an employee can walk down the hall or make a call and sort it out with a person they know. Their first thought when hearing that you’ll be working with a PEO might be something like, “Great… now who am I going to deal with?”

That’s why it’s so important to let employees know that they’ll be receiving better, faster, and more expert service. Explain to them that using a PEO allows everyone to access better healthcare plans and will make all interactions more efficient. You were the general practitioner; the PEO is the specialist. They’ll simply do a better job -- and employees win. Let them know that.


Use the PEO Talk to Build Trust

Any change or event is an opportunity to improve your relationship with your employees, but shifting to a PEO deals with elements on which their livelihood depends -- payroll and benefits. Taking the time to meet with each employee to explain how their life will be impacted positively by working with a PEO will have a real impact on owner-employee relations.

On the flip side, not engaging employees in a personal way may do the opposite. No one wants to get a dry 1-page memo outlining a shakeup to the things that keep them and their families healthy and happy. Instead, reiterate that you’re committed to make sure that they have an easier time than before and that you’ll do everything you can to make sure that happens. They’ll appreciate it.

It’s About Value for Employees

You decided to work with a PEO so you could offer more streamlined payroll, better benefits, and smoother administration for a host of core services. That helps your bottom line, but it also adds value for employees. Let them know explicitly that you’re working with a PEO to benefit them, too.

Working with a PEO will improve your operations and allows you to focus on running your company and helping get the best out of your people. Tell your employees. Be open and honest with them about how their role with the company will be improved by everyone spending less time on paperwork. Say you’ll have more time to talk to them or work with them. Show them specific examples of how you’ll use your reclaimed time not just to make the company better, but to make their job easier and more fulfilling.

After all, isn’t that why you decided to work with a PEO?


Rodney Steele