Why a lack of PEO auditing leads to increased costs over time

Our experience has taught us that clients who don’t routinely audit their PEO can potentially end up with increasing costs year over year. This increase in costs is often due to adopting a “set and forget” approach to a client’s PEO.

Auditing is one of the best ways to negotiate with your PEO provider, and will usually lead to some type of concession. Whether that concession is a lower price or results in a competitive bid to take to the marketplace, not performing audits leaves dollars on the table and is a missed opportunity when it comes to managing costs.

While a lack of auditing won’t necessarily make or break an organization’s finances, it is a good way to efficiently manage the balance sheet, especially if the bottom line is tight.