Searching for the Best PEO? Here Are the Top 5 Qualifications

When a small business owner decides to outsource HR responsibilities, finding the right professional employer organization (PEO) is crucial. The market offers a diverse range of options, from national firms to specialized, locally-focused companies like Axcet.

To ensure that the PEO you choose ranks among the best PEOs, there are specific qualifications to consider.

This guide outlines five essential qualifications that distinguish the best PEOs, helping you make an informed PEO comparison and ensuring that your chosen partner can effectively manage your company's HR needs with precision and personalized attention.

Choosing the Right Partner: What Makes a PEO Stand Out?

As you consider partnering with a PEO, it’s essential to understand what separates the best from the rest. The following qualifications are not just indicators of a PEO’s competence but also benchmarks of trust and reliability in the industry.

These standards ensure the PEO you choose is not only equipped to handle the complexities of HR management but also committed to upholding the highest levels of compliance and security.

Now, let’s explore these qualifications in detail, starting with one of the most critical: IRS certification.

1. Certified PEO 

IRS Certification: A Mark of Credibility and Trust

• Compliance assurance

When searching for the best PEO for your business, the first qualification to check is whether the PEO is certified by the IRS. This certification is a clear indicator that the PEO meets stringent IRS requirements, ensuring compliance with all tax regulations and responsibilities.

• Direct responsibility

A certified professional employer organization (CPEO) is recognized by the IRS as the responsible entity for paying federal employment taxes on wages paid to its clients' employees. Personnel handling these payments at a CPEO undergo thorough background checks, adding an extra layer of security and trust.

Benefits for Small Businesses

• Liability protection

With an IRS-certified PEO, clients are not liable for any unpaid federal employment taxes—a safeguard that adds substantial financial and operational security. In the rare event a CPEO fails to fulfill these tax obligations, the responsibility lies solely with the CPEO, not the client business.

• Operational security

Choosing a CPEO that is fully vetted by the IRS, like Axcet HR Solutions, ensures that your business is partnering with one of the industry’s best PEOs. This certification signifies a commitment to the highest operational standards, guaranteeing that your payroll taxes and reporting are managed accurately, efficiently and securely.

Axcet's Commitment to Excellence

• Exclusive certification

It's noteworthy that fewer than 10% of all PEOs nationwide achieve this certification, a prestigious designation that Axcet has proudly held since 2017.

• Pioneer in the industry

Axcet was among the first 10% of PEOs in the country—and the first in Kansas City—to receive IRS certification, highlighting our leadership and dedication to being one of the best PEOs in the industry.

RELATED: Certified PEO vs PEO - A Side-By-Side Comparison >>

2. HR Certifications  

Highly Qualified HR Specialists

• Certification standards 

  The best PEOs employ qualified and experienced HR professionals whose certifications reflect a thorough understanding of employment regulations and HR management. These certifications are a testament to their expertise and commitment to excellence in their field.

• Expert guidance 

  Certified HR specialists are well-equipped to offer expert guidance and support across various HR functions, including employee benefits administration, compliance, risk management and employee relations.

Benefits of Partnering with Certified HR Professionals

• Access to expertise 

  By partnering with a PEO that employs certified HR professionals, your business gains access to a wealth of knowledge and expertise. This ensures that your HR practices align with current industry standards and trends.

• Enhanced workplace efficiency

  HR specialists at top-tier PEOs, such as those at Axcet HR Solutions, who earn and maintain certifications from respected organizations like the Society for Human Resource Management (SHRM), the HR Certification Institute (HRCI) and the American Payroll Association (APA), are dedicated to broadening their knowledge. 
  
  Their ongoing education helps clients cultivate a healthy, engaged, efficient and regulation-compliant workplace.

The Axcet Difference

• 100% certified expertise 

  Within our HR services team, every employee holds a certification from either SHRM or HRCI, ensuring that every piece of advice and service provided is backed by 100% qualified expertise. 
  
  This level of certification across the board is rare in the industry and underscores Axcet's commitment to delivering only the best HR solutions to our clients.

3. Personal Service

Dedicated Consultants for Each Client

• Consistent, personalized service 

  A best PEO distinguishes itself by providing each client with dedicated consultants. This ensures that every client receives consistent, personalized attention tailored to their specific HR needs.

• Hands-on support for urgent needs

  Local PEOs, like Axcet HR Solutions, excel in delivering quick and tailored hands-on service. This is particularly beneficial when urgent HR matters arise or when specialized assistance is needed with onboarding, manager training, safety workshops or benefits enrollment.

Benefits of Local, Face-to-Face Service

• Effective communication & problem-solving 

  Having the opportunity to meet with your PEO representative in person fosters effective communication, enabling faster resolution of issues and fostering stronger, more collaborative relationships.

• Understanding unique needs

  Face-to-face interactions allow PEO specialists to better understand and promptly address your company’s unique HR requirements. This leads to a more personalized service experience, enhancing overall satisfaction.

The Axcet Advantage

• Tailored HR solutions 

  At Axcet HR Solutions, the personal service model is at the core of what we do. Our approach ensures that every client interaction is meaningful and customized, reflecting our commitment to being recognized as the area's best PEO. 
  
  This personal touch not only helps in precise issue resolution but also in building lasting partnerships that truly understand and support your business goals.

4. Advanced Data Protection

Robust Security Measures

• Comprehensive data safeguards 

  The best PEOs employ robust security measures to protect sensitive employee and payroll data. These measures include encryption, staff security training, secure data storage, and regular data backups, all essential when outsourcing HR functions.

Benefits of Enhanced Data Security

• Confidentiality, integrity & availability 

  Prioritizing data security ensures the confidentiality, integrity and availability of your HR data. This instills trust and provides peace of mind for small businesses, knowing their sensitive information is handled with the utmost care and professionalism.

• Trust & compliance

  Effective data protection practices also help businesses comply with various regulatory requirements, reducing the risk of data breaches and penalties. This is critical for maintaining a company's reputation and operational continuity.

The Axcet Advantage

• Owned & controlled cloud storage 

  Axcet HR Solutions maintains its own cloud infrastructure, which allows complete control over the physical hardware and enhances the security and reliability of data storage.

• Layered security defense

  Multiple security layers, including firewalls, network security measures, access control systems, and a securely locked room housing our servers, create a solid shield around client data, safeguarding it against unauthorized access and breaches.

• Daily commitment to security 

  Axcet stakes its reputation on securing your sensitive data every day. Our proactive approach to data protection positions us as one of the best PEOs in the industry, dedicated to safeguarding our clients' most crucial assets.

RELATED: Payroll Security - Top 3 Security Measures to Ensure Your Data is Safe >>

5. Business Longevity 

Proven Stability and Expertise

• Decades of operation 

  The best PEOs are characterized by their long-standing operations, which reflect their stability and proven expertise in the field. This longevity demonstrates a track record of client satisfaction and the ability to navigate through various challenges and changes in the business landscape.

• Long-term client relationships

  Operations spanning decades often result in long-term client relationships. These enduring partnerships are a testament to the PEO's consistent delivery of value and quality service.

Benefits of Long-Standing PEO Partnerships

• Consistent value delivery

  Clients who experience good service and high value are likely to maintain partnerships with their PEOs for many years. This continuity is crucial for businesses that value consistent, reliable support in managing their HR needs.

• Evaluating PEO performance

  When evaluating potential PEOs, it’s beneficial to speak with several of a prospect’s clients, both long-term and recent. This can provide insights into the PEO’s ability to consistently deliver value and adapt to changing needs.

The Axcet Advantage

• Exceptional Net Promoter Score (NPS)

  Axcet recently scored an impressive NPS of 85.8, on a scale of -100 to +100. This score is significantly higher than the average nationwide PEO score of 49, the average score of 37 for all HR service firms, and the overall average score for all businesses of 32. 
  
  A high NPS like this not only reflects high client satisfaction but also indicates a strong likelihood of recommendation by clients. It underscores Axcet's commitment to excellence, making it one of the best PEOs in the industry.

RELATED: Axcet HR Solutions Expands Office to Accommodate Growth >>

Axcet HR Solutions: The Best PEO for Small Businesses

When you choose one of the best PEOs, you can confidently outsource HR, including secure payroll services. Your business will be in capable hands, and you’ll have more time to focus on driving growth and success. 

Kansas City small and medium-sized businesses have trusted Axcet with their most important HR tasks since 1988 because we excel at every criterion that defines a best PEO. Our company is IRS-certified and HR personnel are certified by reputable industry organizations. We take a personalized approach to service and budget any resources necessary for the most advanced data protection measures. 

Contact Axcet to schedule a quick consultation to learn how you can take advantage of HR services provided by one of the best PEOs in Kansas and Missouri.