Broker Newsletter May 2022
Happy Spring!
I hope you are looking forward to the summer months like I am! At SynchronyHR, we are meeting with many potential clients during the spring and summer months, anticipating a start during the 3rd and 4th quarter of 2022. This is a great time to send over your clients for an initial meeting.
Do you know of any clients that could benefit from additional HR and payroll support? If so, SynchronyHR would be a great solution.
I am looking forward to connecting with you soon! Until then, please enjoy the below.
Keith Tirico
Senior Business Development Consultant, SynchronyHR
Human resources outsourcing organizations (HROs), often referred to as professional employer organizations (PEOs), can be ideal solutions for business owners looking to outsource their payroll and HR-related administrative tasks. While these services are beneficial for employers, their potential broker partners might see them as problematic. For example, an insurance broker may experience the below:
- An aggressive PEO engages with your clients, promising them cheaper insurance rates
- A PEO has a prospective client trapped in a bundled service offering, making a potential switch extremely difficult for all parties involved
When I ask my broker partners what they would do in these situation, or what their plan is when faced with a rival PEO, the response is often a very confident, "I take prospects out of a PEO all the time."
This may be the case at times, but when I dig deeper and ask the same brokers to raise their hands if they ever lost a client to a PEO, all hands usually go up.
But, what if there was another way? What if you could align yourself with a trusted PEO partner that would help you counter a potential PEO threat?
That's where I come in, along with my associates at SynchronyHR. One of our primary goals is to be a true partner to insurance brokers. Think of us as a shiny new tool to add to your growing toolbox, a tool that can help you both navigate complex PEO/employer relationships and fend off poaching PEOs.
According to NAPEO, the National Association of Professional Employer Organizations, PEOs represent 15.3% of all employers with 10 to 99 employees. Their penetration growth rate is 7.6%, which is higher than the compounded annual growth rate of employment in the economy during the same period.
With this kind of market penetration by PEOs, there is no denying that a PEO may be involved with your clients and/or prospective clients. Aligning yourself with a partner, like SynchronyHR, gives you access to PEO experts that you can consult and strategize with.
Unlike other PEOs, SynchronyHR works almost exclusively with AP brokers.
Better yet, partnering with SynchronyHR can also lead to monetary benefits for brokers. Commissions are paid on all lines of medical insurance and administration fees. If an AP producer decides to utilize SynchronyHR's master insurance lines, they would be compensated.
“Having a division available to us that is completely dedicated to the PEO Market is a game changer. PEOs are a small thorn in my side, and not a major obstacle, but it is nice to know that we have subject-matter experts to help advise and strategize when needed”- AP Producer
SynchronyHR works like the PEO advisor/expert division for AssuredPartners. If you have clients in a PEO relationship, or are contemplating a PEO outsourcing relationship based on their needs, please think of us.
Companies would be well-served in conducting a market analysis of costs and services from time to time, a free service that SynchronyHR can assist with. Our simple market check could yield cost/service savings, or cost/service validation, a win for all involved. It all starts with a strategy call to see if we can help.
Remember, it's easy to get lost in the weeds when thinking about, discussing, or strategizing about a PEO. We can help.
Please feel free to reach out today to learn more.