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The Pro's and Con's of a PEO Model

People just like you run companies. How employers care for their people has become key to remaining competitive in the modern job market. Professional Employer Organizations (PEOs) are considered ideal across various industries for providing security and convenience to employees and companies alike. Known for their low benefit costs and assistance with key features of business management like worker’s compensation and HR, it's no wonder PEOs are depended on by many companies. However, for those of us who are people-focused, like we are, there are other options: options that consider people in every step of the process while still delivering a one-stop-shop solution.

Pros of a PEO Model:

  • One-Stop-Shop: Provides benefits, HR, worker’s comp, and payroll all in one place, and having one platform for everything can reduce workload

  • Affordable: Offers competitive health insurance rates for benefits and sometimes worker's compensation

  • HR: Provides on-demand HR assistance and can reduce employers’ liability

  • Risk Management: Helps mitigate risk and/or supports the Loss Control Department for Workers’ Compensation

  • Liability Shield: Can help protect from employment lawsuits

Cons of a PEO Model:

  • Mid-tier Service: Most PEOs are good at everything but great at nothing

  • High Administrative Fees: High fees for services offset the insurance savings for many companies

  • Limited HR: Proactive and strategic HR consulting is limited in most PEOs

  • Dependence: Most companies are dependent on the PEO’s systems rather than internal processes

  • Security: Can provide a false sense of security and limited oversight can lead to costly errors

  • Tech: Typically do not provide best-in-class technology

A PEO’s model is set up to keep you dependent upon their processes. The 19:21 Consultants PEO Alternative program aims to set up internal scalable processes and grow with your company, even if that means shedding services in the future.

Here's what makes our program unique:

  • Subject Matter Experts: Our experts in each field provide the best plans and services to fit your particular company.

  • You Have a Choice: Our products and services are a la carte giving you the ability to pick and choose based on your needs.

  • People-focused Service: Our people hold every step of our process, product, and platform together and are responsible for our service model.

  • HR: We provide HR support across many variations: administrative, strategic direction, on-site support, audits, and even outsourcing.

  • Security: We establish internal safety measures to instill safe, scalable processes.

  • Liability: Our personalized guidance from 19:21 HR can reduce exposure.

  • Consultative Process: 19:21 consults on various tech platforms to meet each company’s individual needs.

  • Price: We leverage many insurance carriers and often beat PEO insurance rates.

  • Localized Support System: Coupled with checks and balances in each module, our support system ensures discrepancies are addressed.


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