PEO Services | FBA NationalWhen it comes to finding an efficient and cost-effective solution for human resources in India, you cannot beat the value of a professional employer organization (PEO).Whether you’re looking for an all-in-one solution for your HR needs or something to support your current people and processes, PEOs are able to offer products and variety of services that addresses all of a company’s specific needs while minimizing costs, reducing risk and increasing your teams productivity.

There are 100’s of PEO’s in India and with so many options, it can be hard to know which PEO to choose.



So, what are the Things to Consider When Choosing a PEO?


payWhat am I exactly paying for?

Most PEOs charge for their services in one of two ways:

  • percentage of total payroll
  • Flat per-employee-per-year fee.

In both cases, the exact price or rate would depend on which pre-set bundle of services you select. Before your sign up, make sure you know exactly what you are getting from the PEO. Ask to see the package break up into line items, that way you will have more clarity on what services you are, and are not, getting. If a key service that you are looking for (like motor insurance for example) is not listed, you may need to ask them for adding it in the PEO Proposal.


accessAssess Business Needs before Signing up.

Before talking to a PEO, you should understand your business needs. What current challenges does your business face? Do you anticipate any changes to your company that could impact the services you need? Look at all aspects of your business, such as:



  • Payroll: Between managing payroll & filing taxes, small and mid-sized companies spend a significant amount of money per employee each year to handle payroll, and many incur additional taxes or fines each year due to issues in compliance. Outsourcing payroll services to a PEO can save you significant amount of time and money by providing you with a simplified, online HRMS & Payroll system.
  • Human Resources: From sourcing, recruiting, onboarding to retaining employees to tracking attendance, managing your company’s HR tasks takes a lot of time. Outsourcing these HR functions to a PEO as they use HRMS tools and they can help you save time and money, while you focus on growing your business.
  • Compliance & Risk Management: Managing your company’s risk on your own can be time-consuming and a very costly affair. Instead, you can build towards a more secure future by outsourcing to a PEO.


get clarity Get Clarity on the services that you can expect from the PEO?

When you hire a PEO, they function as an extension of your business. As the EOR (employer of record) for your employees, it is the PEO’s job to answer all your queries, as well as your employees’ questions, about employment-related matters.



It would be important to know the following:

  • Who will be SPOC for your account on a day-to-day basis.
  • Will you have an assigned HR advisor/ PEO Specialist?
  • Will you have an employee Payroll specialist available to take your calls?
  • Who will your employees contact for payslip and payroll queries?

While these may not seem like crucial questions initially while selecting a PEO, understanding your relationship with your PEO & how they will work can have a huge impact on the success of that relationship in the future.


What kind of technology or software does the PEO use?

One of the many benefits of partnering with a PEO is gaining access to HRMS technology. Make sure to ask about the technology they offer, particularly if you would like to continue using tools & software that you have already purchased, or if you have anything specific in mind.

The purpose of PEO is to make your life easier and not difficult. If the HRMS platform that a PEO offers is not simple to use, then the PEO is going to be more of a burden than an asset to your organization. Web-based payroll portals benefit employers by compiling everything they need to manage their back office in one place.

The PEO’s HRMS system should help your organisation with:

  • Simplifying workers’ compensation calculations & payments.
  • Generate on-demand payroll reports.
  • Manage and access payroll information.
  • Complete payroll in minutes, not hours.
  • Easily keep track of deductions.

The HRMS should streamline the process for employers and keep employees satisfied.

Ask the PEO if they provide training or professional development for the employees?

PEO is not always just about payroll & benefits administration.

Professional development & employee training opportunities attract potential candidates who seek to join organisations. It also allows you to maximize the potential of your existing workforce. This is usually an important aspect of organizational culture & you would want to make sure that your PEO offers these services as well.


benefits planWhat kind of employee benefits plans are available from the PEO?

In this candidate driven market, the candidates look for more than just a pay check. Employee benefits will make your business a great place to work and help retain talent.

They want to have the best possible benefits.


That means candidates look for a great selection of benefits such as:

  • Medical Insurance plans (Individual & Family)
  • Retirement Savings plan (PF)
  • Corporate wellness program
  • Life insurance (Individual / Family)
  • Employee State Insurance (ESI)
  • ESOP’s
  • Work from Home
  • Work Life Balance

Prior to choosing a PEO, inquire about which benefits they can provide to the employees & make sure they are able to put together a custom benefits package that meets your employees’ needs, expectations, and lifestyles.


MyInvolvementWhat is my involvement & role when it comes to taxes & regulatory compliance?

The PEO will become a co-employer for all your employees & will be responsible for both the liability & responsibility for managing, reporting of your employees’ compliance, payroll & taxes. In addition, the PEO also assumes much of the responsibility for ensuring that your employees are covered and protected under local & state labour laws.


ReputationWhat is the reputation of the PEO in the Market?

This is perhaps the most important question you should ask before you hire a PEO.

Do you due diligence research, and make sure you know who you are going to be doing business with. Trust & transparency are especially important. Ask to see audited financial reports, ask about local licenses and accolades & awards if any. Ask for a reference check with a previous or existing client.

Ask questions, such as:

  • How many companies do they partner with?
  • Do they have experience working in your industry?
  • How many employees do they represent?
  • What is their client retention rate?
  • How long they have been in business?
  • What their clients say about them

Also, it is important to look at reviews from social media. These are all signs of whether a PEO will be able to properly handle your business needs or not.

So, by having a PEO handle the HR, payroll, benefits, and risk management side of your business, you will be able to focus on what really matters: Building, Scaling & Growing your business.

Choosing the right PEO is all about understanding your companies’ goals, vision, mission and Culture. You want to make sure that the PEO you choose understands and has a plan of action that will help you achieve those goals.