Learn about actual and potential costs
How much should I pay for Professional Employer Organization Services?
What is the average price of Professional Employer Organization Services?
This procurement report includes pricing information to help you purchase Professional Employer Organization Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.
Has the price of Professional Employer Organization Services been rising or falling?
Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.
I’m not ready to purchase Professional Employer Organization Services yet. Will I pay more if I wait too long?
We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.
What other costs are associated with purchasing Professional Employer Organization Services?
Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Professional Employer Organization Services with a reduced risk of unexpected costs.
See how we display average pricing information, trends and market data.
Find the vendor to meet your needs
Where can I purchase Professional Employer Organization Services?
Market share concentration is moderate, with the top four companies comprising just under half of the total market in terms of revenue. There are about 3,400 PEOs in the United States. Despite the presence of a few large players that generate high revenue, the market is highly fragmented and primarily... Subscribe to learn more.
Questions to ask potential suppliers
How can I gain leverage during negotiations?
Do you provide payroll or payments stubs for our employees?
How do you prepare audited financial statements?
What steps do you take to ensure that you are compliant with state and federal regulations?
How do you manage payment of taxes?
Do you offer employee tax assistance? Are there additional fees associated with this service?
What is your client renewal or repeat business rate?
How do you evaluate customer satisfaction and how frequently?
Would we have a dedicated account manager to handle our inquiries, or will we use a general support line?
Do you auto-renew contracts? How much notice do you require for contract termination?
Do you have an online portal where we can keep track of employee progress?
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Key elements for every RFP
What should my Professional Employer Organization Services RFP include?
If one exists, buyers should specify their budget for PEO services and related products and services.
Buyers can reference the benchmark price and total cost of ownership sections of this report for assisting in creating a budget.
Buyers should specify their evaluation process for the submitted proposals, including technical and financial evaluation.
Vendors will be evaluated based on their ability to fulfill the buyer’s requirements and expectations.
Vendors will be evaluated based on the quality of the overall proposal, the quality of the proposed approach and the general PEO strategy.
Vendors will be evaluated based on their experience in carrying out related projects and qualifications of the staff assigned to this project.
For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.
Buyers should outline the tentative schedule and process for the RFP and project.
Buyers need to include the date when proposals are due and when the award will be announced.
Buyers should outline the terms of the contract and cancelation policy.
Evaluate major factors to mitigate risk
How risky is the Professional Employer Organization Services supply chain?
Supply chain risk is low for PEO service providers. Suppliers rely on few critical inputs that can disturb the delivery of services. Suppliers mainly rely on upstream insurance and payroll service providers, IT consultants and computer and software providers to offer their services. These services and inputs are widely accessible... Subscribe to learn more.