Best Practices for Collaborating with Your PEO

When partnering with an HR partner or PEO, companies often think of it as outsourcing specific HR tasks. However, the reality is much more dynamic. Collaborating with a PEO does much more than simple delegation and involves forming a true partnership with their client companies.

A quality PEO integrates seamlessly with your team to support your business goals while handling administrative complexities like payroll, compliance, and benefits administration. Fostering a collaborative relationship is crucial to ensure that businesses maximize the benefit of working with a PEO.

In this post, we will provide actionable tips to help HR professionals and SMEs work effectively with their PEOs, creating lasting and impactful partnerships.

Tips to Collaborate Effectively with a PEO Partner

Working successfully with a PEO is about aligning processes and communication to effectively integrate your work output.

Here are some best practices to help you unlock a productive, efficient, and mutually beneficial collaboration.

1. Establish Clear Communication Channels

Good communication is the foundation of any successful partnership by doing the following:

• Set up direct points of contact: Each department, whether HR, payroll, or compliance, should know their corresponding contact within the PEO.

• Regular check-ins: Schedule weekly or monthly meetings to ensure updates and align priorities.

• Use collaborative tools: Platforms like Slack or Microsoft Teams can streamline communication and keep the workflow transparent.

Clear communication prevents misunderstanding and nurtures trust between your internal team and the PEO partner.

2. Define Roles and Responsibilities

Misaligned expectations can cause inefficiencies. Avoid this by clearly defining who handles what so that your internal team knows how to conduct:

• Payroll and benefits: If the PEO manages these, make sure your team knows when to escalate issues or provide approval.

• Employee support: Clarify how both sides will address questions related to HR policies, benefits eligibility, or payroll concerns.

• Compliance updates: Ensure it’s clear whether your internal HR or the PEO monitors state and federal labor law changes.

Clearly outlining roles increases efficiency by not putting too many people on the same task while removing mundane tasks from your team so they can focus on strategic initiatives.

3. Treat the PEO as an Extension of Your Team

The relationship with a PEO works best when they’re treated as an integral part of your organization. Include your PEO team in key business updates, share your company’s values, and ensure they understand your corporate culture. This alignment better equips them to provide solutions tailored to your goals – and it can go further when your values and culture already significantly align with each other.

For instance, if your company encourages flexibility and work-life balance, the PEO might recommend benefits packages that emphasize flexible healthcare options.

4. Provide Proper Training for Internal Teams

For collaboration to run smoothly, your internal team must feel comfortable using the tools and processes provided by the PEO. Work with your PEO partner to onboard your team with these procedures:

• Train your staff: Ensure your HR team and managers understand how to access resources like onboarding platforms or consulting services.

• Streamline onboarding: If the PEO uses an advanced HRIS system, make training sessions mandatory to avoid system mishaps.

• Conduct knowledge-sharing workshops: Schedule joint training sessions that involve employees and PEO representatives for better understanding and collaboration.

Investing in training helps your team fully leverage the PEO’s capabilities for better results.

5. Maintain Compliance through Collaboration

One of the most significant benefits of a PEO is its ability to help maintain compliance. Their guidance keeps you informed about new labor laws and workplace regulations with advice or updates provided by your PEO. Their compliance experts ensure that your policies and procedures meet regulatory requirements.

Also make sure to use the PEO’s expertise to draft and maintain employee handbooks, ensuring all policies are up to standard and consistently enforced. Collaborating on compliance gives your business a strong foundation while reducing the risk of penalties or lawsuits.

6. Foster Open Feedback Loops

Partnerships grow stronger when both sides can evaluate their performance and suggest improvements. Get their input with:

• Regular performance reviews: Create a system to regularly assess the PEO’s work and identify areas for improvement.

• Encourage feedback: Managers and HR team members should feel comfortable sharing what’s working and where they see gaps.

• Develop action plans: Work closely with the PEO to address concerns and adjust workflows as needed.

Open communication fosters trust, and feedback loops ensure ongoing improvement in the partnership.

7. Focus on Employee Experience

Your employees are the foundation of your organization. Collaborating with your PEO helps you secure comprehensive benefits and enhance their experience can lead to better retention and satisfaction. They can help you achieve:

• Streamlined benefits processes: Work with your PEO to ensure employees have access to benefits information, online enrollment, and timely support for any issues.

• Responsive HR support: Partner with the PEO to provide quick and reliable answers to employee questions about payroll or compliance matters.

• Employee morale initiatives: Ask your PEO for insights into employee wellness programs, professional development tools, or recognition strategies to improve engagement.

By prioritizing employee experience, you’ll improve workplace morale and solidify a strong employer-employee relationship.

Partner with a PEO like ABO!

Collaborating with a PEO doesn’t have to feel overwhelming. At ABO, we specialize in creating seamless integrations with businesses just like yours. Our goal is to align directly with your company values and provide the essential support you need to enable your HR team to focus on strategy—not administration.

Whether you need help managing payroll, navigating compliance challenges, or enhancing employee benefits, ABO has the experience and expertise to make you feel confident in your collaboration.

Reach out to ABO today to learn how we can streamline your HR processes and help your business thrive.