The Evolving PEO Value Proposition
How would you describe the PEO value proposition? While it’s intangible, you may imagine it as something that flows. It’s constantly evolving as PEOs change to meet small business needs, keep up with developments in HR, benefits, and technology, and adapt to the changing workforce. You may envision the PEO value proposition as an ethereal thing, composed of many different colors that blend, change, and flow in different directions.
You may envision it this way because of the many different ways PEOs structure and promote their offerings, and the many different variations and combinations of the offerings themselves. However, it is possible to identify themes running through:
Pure-play PEOs, PEOs also offering some mix of non-co-employment such as ASO, specialized and niche PEOs, and PEOs appealing to a broad business base;
Disruptors to the PEO value proposition, such as the Affordable Care Act (ACA) and online-only HR technology entrants such as Zenefits; and
Indications of where the PEO value proposition is going, for example, PEOs taking advantage of the opportunities created by the ACA, adapting to compete with the latest market entrants determined to take market share, adding compliance assistance as a major focus, preparing for technology to become a bigger part of the value proposition, and recognizing the opportunities the Small Business Efficiency Act (SBEA) presents.
It’s always interesting to see what PEOs do. And the value proposition is a beautiful thing.