How Brokers Are Using PEOs to Win and Retain More Clients

As a broker, you know that clients don’t just look to you for just advice, you’re a strategic partner that offers resources. To win and retain new clients, you’ll need to make sure that you can connect them with best-in-class solutions that are tailored to their unique business needs.

By partnering with a PEO, brokers can gain access to tools and services that empower hundreds of thousands of small and mid-size businesses—which grow an average of 2x faster than competitors without PEOs. In this article, we’ll break down the strategic advantages of PEOs for brokers and their clients, and also explain how PEOs can be part of the foundation that helps businesses scale successfully from day one.

What Are PEOs and Why Are They Important for Brokers?

A PEO (short for Professional Employer Organization), is a firm that provides a range of HR services. That can mean everything from payroll processing and performance management to regulatory compliance and onboarding support. 

No two PEOs are exactly the same, but they all work by co-employing the client’s workforce and allowing businesses to offload time-consuming tasks. As a result, teams can focus more of their time and energy on core operations and strategic growth, while the PEO manages HR responsibilities.

For brokers in particular, partnering with PEOs can be a game-changer. By tapping into a PEO’s tools and insight, brokers can expand their capabilities with a broad spectrum of services that address multiple client pain points. In such a crowded field, PEOs can help brokers differentiate themselves to attract—and keep—the best clients.

How Brokers Benefit from Partnering with PEOs

Now that we’ve got the basics down, let’s look at some of the specific benefits that brokers can get when they partner with the right PEO. 

Enhanced Service Offerings

By partnering with PEOs, brokers can unlock service offerings beyond traditional insurance products. This includes providing clients with access to high-quality employee benefits, risk management, and HR support. Instead of farming each of those tasks out, PEOs offer a one-stop service with comprehensive solutions, making brokers invaluable partners to their clients.

Increased Client Retention

Those comprehensive, integrated solutions aren’t just for show. They also make clients more likely to stay. With the backing of a PEO, brokers can provide the level of service—both a breadth of services and attentive support—that clients expect in today’s competitive market. This not only helps in retaining clients but also in building long-term, trust-based relationships. And of course, satisfied clients can be your best promoters, bringing in new business through word of mouth. 

Access to Expert Knowledge

Sometimes the best way to tackle a problem is to consult an expert who has seen—and solved—it all before. PEOs are staffed with highly experienced HR advisors who stay on top of the latest trends and regulations. Brokers can take advantage of this expertise to provide informed advice and guidance to clients, which in turn builds credibility and trust.

Streamlined Operations

Anyone who has managed operations for a growing company knows how easy it is for small tasks to eat up huge chunks of time. That’s especially true when it comes to the kinds of administrative duties and repetitive tasks that are necessary for HR. PEOs provide brokers with streamlined processes for HR tasks, so you can spend less time on busywork and more time focusing on strategic client relationships. By reducing the operational burden, PEOs allow brokers to work more efficiently and effectively.

Implementing PEO Solutions: A Step-by-Step Guide for Brokers

At this point, you have a clear idea of the benefits for brokers who partner with PEOs. But how do you actually start working with one? Let’s unpack the process, one step at a time.

Step 1: Identify Client Needs

Your clients are all different, and so are their individual needs. Understanding their unique obstacles and opportunities is the first step in implementing PEO solutions. Start by asking questions and listening carefully. Conduct assessments to determine your clients’ HR challenges and what solutions would best address those issues. With that knowledge, you’ll be ready to start your search for the right PEO.

Step 2: Choose the Right PEO Partner

Don’t forget to do some comparison shopping. Not all PEOs  are created equal, so it’s important to choose a partner that aligns with your clients' needs and your brokerage’s goals. When talking with them, consider factors such as the range of services they offer, their industry expertise, and their reputation.

Step 3: Integrate PEO Services into Your Offering

Once you’ve picked a PEO partner, it’s time to start taking advantage of everything they can do for you and your clients. Work with your PEO to integrate their services into your existing offerings as seamlessly as possible. This might include combining insurance products with HR solutions to provide a comprehensive, easy-to-use package for clients.

Step 4: Communicate the Benefits to Clients

Of course, these tools won’t do any good if nobody knows about them. Clearly communicate the benefits of PEO solutions to your clients, highlighting how these services can help them streamline operations, reduce costs, and improve employee satisfaction. Effective communication is key to gaining client buy-in and making the most of your PEO partnership. It’s also an opportunity to let clients know that you want their feedback as they start to take advantage of everything the PEO has to offer.

Step 5: Provide Ongoing Support and Evaluation

Your relationship with your clients is always evolving, and your partnership with your PEO will, too. After implementing PEO solutions, you can continue to provide support and evaluate their effectiveness. Regular check-ins with clients will ensure that the services are meeting their needs and allow you to make adjustments as necessary. Don’t be afraid to keep fine-tuning your PEO solutions as your business continues to grow and transform. 

Justworks for Brokers 

By now, you’ve got a solid understanding of how partnering with a PEO can offer brokers a unique opportunity to enhance service offerings and strengthen client relationships. When brokers adopt a strategic approach to PEO partnerships, they can win and retain more clients, ensuring long-term success in an ever-changing market.

Ready to use a PEO to win and retain clients for your brokerage? Learn more about how Justworks can help.