Did your PEO just bump up your costs? Here’s what you need to know—you’re not stuck.
A lot of small and mid-sized businesses think they’re locked into their PEO contract until renewal. But the truth is, you’re not out of options. With the right strategy (and the right advisor), you can take back control.
Here’s a clear breakdown of what to do when your PEO increases your rates—and how a PEO broker can help you save time, stress, and money.
Why PEOs Aren’t Always “Set It and Forget It”
PEOs offer real value. They help streamline HR, payroll, benefits, and compliance—often unlocking cost savings on health plans and workers’ comp, while freeing up internal bandwidth.
But when your rates jump, it’s fair to question whether the value still lines up with the price tag.
And here’s the good news: you don’t have to stick with one PEO—or even stay in the PEO model at all.
You’ve Got Options—And They’re Better Than You Think
Rate hikes don’t mean you’re boxed in. Whether it’s a sudden increase or a slow upward creep, here’s how to respond:
1. Reassess What You’re Paying For
Ask yourself:
- Are all the promised services being delivered?
- Are we truly using all the features we’re paying for?
- Does the cost reflect the value we’re getting?
An honest review can reveal gaps—or opportunities to get more for less.
2. Know That You Can Switch—Anytime
Many business owners don’t realize they can shop other PEOs mid-contract. A broker (unlike a rep who works for one PEO) can help you compare options across the market that better align with your goals and budget.
3. Decide If a PEO Is Still the Best Fit
Sometimes, the best move isn’t switching providers—it’s leaving the PEO model altogether. A good broker gives unbiased advice, helping you explore direct HR and benefit solutions that might make more financial sense.
Why Work With a PEO Broker?
Navigating PEO options can be overwhelming, especially when you’re running a business. That’s where a broker becomes your ally.
Here’s what they bring to the table:
- Industry Insight: They know the market, pricing trends, and which PEOs fit which business types.
- Customized Recommendations: They assess your needs and find tailored solutions—whether that’s a new PEO, a tech platform, or something else.
- Savings Potential: Switching providers or exiting a PEO can result in major cost reductions—brokers know where to look.
- Time Back: Let them handle the research, quotes, and negotiations so you don’t have to.
Don’t Overpay Without a Second Opinion
Here’s what sets brokers apart: they’ll tell you if staying put is your best bet—or if there’s a smarter move available.
Bottom line? A rate hike doesn’t have to mean accepting higher costs. With an expert guiding you, you can find a solution that makes more sense for your business today.
Book a consultation and get clarity on your options—before you renew on terms that no longer work for you.