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Comparing HRISs and PEOs: The Conclusion

Erik Reno
July 21, 2022

From technology to flexibility, see the final four factors

In part one of this two-part series, we covered the differences between HRISs and PEOs when it comes to control, culture, capabilities, and quality. Today we conclude our comparison by diving deep into the final four major considerations for employers and brokers to mull over prior to selection. Let’s dig in.

4) Technology and Security

Your business and employee data contains extremely valuable and sensitive information. So it’s important to know what steps a PEO or HRIS takes to ensure it’s safe and secure.

With a PEO, your data is controlled and stored off the premises, so you don’t have immediate access to it. Different PEOs (and their vendors) also have different levels of security associated with storing this data.

Ease is an all-in-one digital solution that helps you offer voluntary benefits, HR tools, third-party administrator connections, ACA compliance, and payroll integrations all while managing mid-year changes for you and your employees with one login. No one has to use multiple systems and remember multiple passwords — the technology makes it all so simple.

And, our software scans for viruses and malicious programs and uses two-factor authentication for secure access and data privacy, which prevents up to 99% of automated hacks. Ease also follows the California data privacy regulations, which are some of the most stringent requirements in the country, and ensures compliance with HIPAA, SOC 2 Type II, and HITRUST for further measures of personal and cyber security.

Finally, with Ease’s technology your employees also have instant access to all of their information via a computer, tablet, or mobile device.

5) Costs

Let’s face it, cost continues to be a major driver for deciding to partner with a PEO or an HRIS. Whether it’s cost savings potential by making jobs and processes more efficient or utilizing them to enhance their business’s growth potential, money is a huge factor. But there’s a price tag to cost savings or business expansion.

For PEOs, you’re looking to reduce the resource costs associated with HR duties. However, the cost for their services and how they charge you varies.

Most PEOs charge per employee per month (PEPM). The consequence of this is the more your business grows and the more employees you have, the more working with a PEO will cost you.

There are also numerous administrative fees for their services that vary in price. These can range from $100-$160 PEPM or a certain percentage of your total payroll — all of which can get costly as your business grows.

Since there are multiple administrative and miscellaneous fees for different services, and the potential to be charged by a percentage of your total payroll, invoices can be complicated and tough to understand. It’s important to ask for an itemized quote or bill so you know what you’re paying for.

Ease has three flat monthly subscription rates for brokers to choose from to fit what’s best for their clients’ needs — and that comes at no cost to employer and employee users.

6) Flexibility

As a business owner, you know how important it is to be nimble and have the ability to ad lib on the fly because every day is different. Different challenges, different opportunities, different successes and failures, different decisions to instantaneously be made.

So another major consideration to think about is the flexibility associated with PEOs and HRISs. Unfortunately, when you hire a PEO, you lose your ability to quickly change benefits, HR processes, and more.

And, leaving a PEO can be extremely difficult, because not only do you have to shift responsibilities to yourself or your HR staff, you also have a full slate of bundled services to replace one by one, causing more change and disruption for your employees.

With Ease, you own and maintain your own benefits decisions and HR processes; there’s no red tape involved. You’re the one decision-maker, without having to worry about the complexity of untangling yourself from the PEO’s HR and packaged benefits.

This gives you and your employees much more flexibility to ensure your satisfaction is guaranteed.

7) Attracting and retaining employees

Now more than ever it’s important to attract and retain employees. In a challenging job market for employers where employees are holding all of the cards, a PEO might be the straw that breaks the camel’s back forcing an employee to leave.

According to the 2022 Ease SMB Benefits and Employee Insights Report, employers want game-changing solutions for engaging current employees and enticing future ones. The report shows intuitive onboarding and flexible benefit plans are key factors to help attract, keep, and satisfy employees.

Ease helps employees compare plans in a single, side-by-side view that they can share at home with their dependents. This helps them make smarter decisions with actual costs, like copays and deductibles, and the cost per-pay period during enrollment.

The Ease mobile app is available on iOS and Android, which puts a company directory, time-off calendar, and benefits information in employees’ pockets 24/7/365. And, they only need to remember one login and password for onboarding, benefits, and HR purposes.

Ease is simpler, smarter, safer, and gets your employees on board and using their benefits faster.

Working with a broker with Ease

The popularity of HRISs are growing as businesses expand since they’re a solution that grows with you, not one that costs more PEPM, like a PEO. SMBs are finding success using technology platforms run by brokers who can help them achieve greater efficiency and offer better service with holistic HR and benefits solutions.

Brokers are offering more support to clients than ever by helping them onboard new hires online, conduct benefits elections remotely, and provide compliance support — creating a benefits experience traditionally reserved for bigger businesses.

The bottom line: they’re working harder for you while you retain your autonomy, and you can spend more time working on the things that matter most: serving your customers, growing your business, and having happy employees who want to stay with you for years to come.

Employers interested in Ease should contact their insurance broker.

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