The True Value of Outsourced HR Through the PEO

The True Value of Outsourced HR Through the PEO

By CJ Coolidge


The Real PEO Value: Companies Achieve Leverage From Your Investment in your People Assets or Human Capital Strategies.


While there is value in securing Big Company employee benefits, or Administrative Relief through a relationship with a PEO, the real ROI will come from utilizing the intangible profit drivers available by accessing a PEO’s Powerful Human Capital Strategies.

The most significant value proposition available to the PEO client resides beyond the tangible and readily visible services. It is an expert service team that can identify, and deliver the appropriate, strategic service at the appropriate time. Without this capacity, the totality of available services can appear overwhelming, and unnecessary.

It is one thing to have valuable services available, it is quite another to be able to strategically implement them to receive leveraged value. And, that value is worth the investment.

A PEO should really listen to you and translate your words into strategies to produce high impact, high profit, people systems.

A profitability enhancing PEO listens to you and gives you what you need to:

    • Increase your Profitability (Leveraged people performances will translate to greater profitability.)
    • Effectively communicate your message to your customers and suppliers through your employees. (Improved focus and culture clarifies vision, and impacts everything that your employees, managers, customers, and prospects hear, and believe.)


    • Evaluate the effectiveness of your current organization . (The system structure determines what the results can be.)
    • Look at your organizational workflow and give you valuable suggestions on how to improve it. (An enterprise usually can find great efficiencies here, but they are often overlooked by those involved day to day.)
    • Evaluate the strengths and weaknesses of your current staff, to ensure you’re maximizing their talents by having them in the right positions. (A staff with average performers can produce no more than average results. Eliminate most all unwanted turnover.)
    • Generate a revised staff plan based on true results. (Upgrading staff performance requires true evaluation, and careful implementation. A well-implemented staff performance upgrade produces tremendous results.)
    • Provide a map of your current communication patterns, suggesting ways to improve those patterns. (Appropriate measurements provide clear and objective results, leading to verifiable strategies.)
    • Assess the strengths and weaknesses of your corporate culture. (This one factor produces recurring results, good or bad. Become intentionally good.)
    • Recommendation strategies for improvements or changes. (Most companies use trial and error, and are never able to verify the success or failure of most initiatives.)
    • Format an analysis of the strengths and weaknesses of your organization, with detail to back up your analysis. (Imagine monthly and quarterly impact analysis.)
    • Understand the impact of the recommended strategies before they are implemented. (A professional knows how to create strategies that produce results in advance.)
    • Validate the success that your PEO involvement brings to your organization. (There should be no guesswork here.)
    • Save you time, effort and, ultimately, money. (Your organization cannot gain this expertise and resources for the cost of the PEO’s services.)


Enhance your brand and/or image.

(Become an employer of choice within your industry.)


Don’t settle ¬†getting just a little PEO value; press for the expertise you really want to produce the increased profit outcomes you really need. You can realize substantial ROI on any people investments you make, and an appropriately focused PEO should be able to show you how.

I don’t know why anyone would settle for less.

CJ Coolidge is the founder of The Institute for Intangibles-Driven Enterprise. He is a founding member of the Administaff, Inc. Business Development Advisory Board, and an expert on how Human Capital Strategies can impact business performance.

He is an entertaining and practical keynote speaker. Look for CJ’s latest book, The “Squaredime Letters” to be released Summer 2008.

Find CJ at – Read his blog at

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