It has been several years since I worked with PEO's (actually back when they were referred to as employee leasing). Had mixed results. Looking for input specifically on Hallmark or PEO's in general.
------------------------------------ The doctor is in. Five cents please. You can find me here
What is the smallest size group do you think can justify hiring a PEO? (Cost-effectively)
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Think you have guts? Committment? Consider this British Light Brigade during the Crimean war, when 1/3rd of them didn't come back alive:
Theirs not to make reply,
Theirs not to reason why,
Theirs but to do & die,
Into the valley of Death
Rode the six hundred.
Cannon to right of them,
Cannon to left of them,
Cannon in front of them
Volley'd & thunder'd;
Storm'd at with shot and shell,
Boldly they rode and well,
Into the jaws of Death,
Into the mouth of Hell
Rode the six hundred.
PEO's have their own minimum. Some will have a minimum 5 lives while others will go lower.
PEO's offer a multitude of services, not just group health. Their primary function is payroll but they also create a legal barrier between the (former) employee and employer to minimize employer liability. Many include EPLI in their package. PEO's handle the legal requirements (state & federal) of employee management. Many will offer WC and group life, medical, dental, disability.
There is a fair amount of abuse and mismanagement on the insurance risk side and many PEO's have lost access to WC and other insurance products. When working with a PEO make sure you understand what they offer and how it integrates with the employer.
PEO's have their own minimum. Some will have a minimum 5 lives while others will go lower.
PEO's offer a multitude of services, not just group health. Their primary function is payroll but they also create a legal barrier between the (former) employee and employer to minimize employer liability. Many include EPLI in their package. PEO's handle the legal requirements (state & federal) of employee management. Many will offer WC and group life, medical, dental, disability.
There is a fair amount of abuse and mismanagement on the insurance risk side and many PEO's have lost access to WC and other insurance products. When working with a PEO make sure you understand what they offer and how it integrates with the employer.
How in the world could I work with a PEO? Wouldn't they just push me aside and take the client for themselves: lock, stock and barrel? What would they need me for?
Some PEO's market direct while others work thru brokers. Hallmark is one.
I don't know much about Hallmark, so I am not pushing them over another.
As far as competition is concerned, how is it any different from taking one of your groups to BX and then hoping they don't cut you out by going direct?
PEO's usually compensate agents on a capitated basis. You need to ask how that works with any PEO.
I have never sold a PEO but have taken many clients from them.
PEO's can be very bad policies with very poor customer service.
What I have seen with them is they sometimes lack the best network so that can be a serious problem for the employee.
I have viewed few summery of benefits and sometimes there are holes in the plan. Most of the time they are operating under different state laws.
Where I have seen them really excel is in the the 50-75 market. There rates are very strong there.
Hallmark
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