Avoid drawn-out PEO searches. Evaluate pricing, benefits, service, tech, and contracts together and make a clear choice.

If you’ve shopped for a PEO, you know the drill: three reps call the same day, every demo sounds “the same but different,” pricing doesn’t line up, and somehow weeks turn into months.

That happens when you compare sales pitches instead of solutions.

If you’re still getting familiar with what a PEO is, start here:

What Is a PEO and How It Works

Once you’ve got the basics, use this framework to compare PEOs quickly, apples-to-apples, and with far less noise.

The biggest mistake companies make is assuming all PEOs are interchangeable and the only difference is price.

Without a structure, you end up negotiating the wrong things.

Step 1: Get clear on the problem you’re solving before you talk to anyone; write down the top one or two reasons you’re exploring a PEO.

Most companies land here:

• Health insurance costs are rising too fast
• HR/payroll are eating leadership time
• Compliance risk feels uncomfortable
• You’ve outgrown your current HR setup
• You want stronger benefits to hire and keep talent

Not every PEO is great at every problem. Clarity here saves you weeks.

Step 2: Understand how PEO pricing actually works. This is where comparisons fall apart.

PEO costs typically include:

• Administrative fee (often per employee per month)
• Workers’ comp
• Health insurance premiums
• Ancillary benefits (dental, vision, life, disability) and add-ons

Some PEOs bundle. Others itemize. A low admin fee can be offset by higher insurance rates or weaker plans.

What to request from every PEO (same inputs, every time):

• A 12‑month total cost of ownership at current headcount
• Line‑item breakdown: admin fee, workers’ comp, health, ancillary
• Your benefits census–based quotes, not “sample” rates
• Employer contribution modeling (e.g., at 70%, 80%, 90%)
• Assumptions on payroll frequency, off‑cycle runs, and expected growth

Step 3: Compare benefits first, not last. Health insurance is usually the biggest cost inside a PEO. Two PEOs can look similar on admin fees but be miles apart on benefits.

Ask:

• Which medical carriers and networks are available in our states?
• Are rates age‑banded or composite? How will that affect us next year?
• What plan designs can we offer (HSA, PPO, HMO, EPO), and how many?
• What’s the renewal track record for similar groups?
• How much control do we have over employer vs. employee contributions?

If benefits don’t fit your team and budget, nothing else matters.

• Do we get named contacts for payroll, HR, and benefits? Who, exactly?
• How fast are responses during payroll week? During Open Enrollment?
• What happens when we have an audit, a tricky termination, or a claims issue?
• Who handles off‑cycle payrolls, garnishments, W‑2 corrections?
• What does proactive support look like, including quarterly reviews and renewal strategy?
• What’s the implementation plan and timeline? Who owns each step?

Step 5: Treat technology as an enabler, not the solution. Most PEOs have solid software. Focus on how it helps your team work.

Check:

• Ease of use for employees (mobile app, self‑service, onboarding)
• Integrations with accounting, time tracking, and your ATS
• Benefits enrollment experience (clean, error‑proof, clear cost visibility)
• Reporting for leadership (headcount, labor cost, benefits utilization)
• Data portability (Can we export cleanly if we leave?)

Step 6: Understand contract terms before you sign. The right PEO with the wrong contract can become a headache.

Confirm:

• Contract length and auto‑renewal rules
• Termination provisions, notice requirements, and any exit fees
• How and when rates can change (mid‑year vs. renewal)
• Minimum headcount thresholds and pricing tiers
• What support you get during offboarding (data exports, COBRA, W‑2s)

Why so many companies use a PEO broker? Going it alone often means limited market coverage, repeat conversations, and hard to compare proposals. A good broker will:

• Run a structured, apples‑to‑apples process
• Eliminate poor‑fit vendors early
• Translate proposals into clear financial impact
• Save your team weeks of back‑and‑forth

How Stream HR actually makes this simple.

Step 1: We define your baseline.

We start by locking in the inputs that matter so every PEO is quoting the same thing:

• Headcount, locations, and growth assumptions
• Current benefits elections and employer contribution strategy
• Payroll frequency, job classes, and workers’ comp exposure
• Any must-haves around service, tech, or carriers

This eliminates guesswork and “sample pricing” from the start.

Step 2: We narrow the market.

Not every PEO belongs in every conversation. Based on your goals, we eliminate poor-fit vendors early and only bring in PEOs that actually solve the problem you’re trying to fix, whether that’s benefits cost, service depth, compliance support, or scalability.

Step 3: We force apples to apples quotes.

Every PEO is required to respond using the same framework and provide their answers in writing. That includes:

• A true 12-month total cost of ownership
• Line-item pricing across admin, workers’ comp, and benefits
• Census-based medical quotes, not placeholders
• Clear assumptions and exclusions

No bundled smoke and mirrors. No hidden offsets.

Step 4: We translate the proposals.

Instead of handing you three thick proposals, we consolidate everything into a side-by-side comparison that shows:

• Where costs are actually coming from
• How benefits differ in ways employees will feel
• Service and support gaps that don’t show up in demos
• Contract risks before you sign

You get clarity without needing to become a PEO expert.

Step 5: We stay involved through the decision and beyond.

Once you select a PEO, we stay involved through implementation to make sure what was sold is what shows up at go-live. We also remain a resource after launch for renewals, re-benchmarking, and course correction as your company grows.

Ready to see how we can help your business?

Call us at 720-626-6968 or email sales@stream-hr.com to get started.