In today's environment, you'll find that an increasing number of insurance brokers are choosing to work side by side with PEOs to offer solutions that benefit all parties involved – the broker, the PEO and most importantly, the client.

For the insurance broker: Partnering with a PEO allows brokers to differentiate their agency in a crowded market and retain and expand their book of business. By selecting the right PEO that protects its referral partners and offers financial incentives including guaranteed commissions, insurance agents can build a strong defense against other potential competitors, including big payroll companies, while increasing their future earnings potential. Producers looking for flexibility in the PEO offering can also look for a PEO that allows for a carve out on health benefits or workers' compensation, or both.
For the PEO: Investing in and cultivating long-term partnerships with successful referral partners result in long-term success and increased growth for the PEO. These strategic partnerships allow PEOs to expand their footprint and work closely with more small and mid-sized businesses around the country.
For the client: The exponential growth of the PEO industry itself is testament to the value that PEOs deliver to clients. A report from the National Association of Professional Employer Organizations (NAPEO) found that clients of PEOs on average can save up to 35% on HR administration costs. Surveys of PEO clients have also shown that small businesses that partner with a PEO grow 7% to 9% faster and are 50 percent less likely to go out of business. Through PEOs, companies can sharply improve workforce management efficiencies across the board, particularly in the area of compliance. PEOs also help small and mid-size companies attract and retain talent by helping them offer sought-after employee benefits and perks that would typically be out of reach, including FSAs, 401(k) plans, telehealth, employee assistance and various discount programs.

Businesses of all sizes, including insurance brokers, are looking to recover from an incredibly tough year and bounce back strongly with a determined and enthusiastic outlook. Consider partnering with a PEO to offer additional solutions to clients, increase retention, and build back your book of business.

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Benefits consultants and PEOs: a winning partnership

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