PEO Migration

PEO or Traditional Broker? Get the Best of Both

It’s death by 1,000 cuts

If you go with an all-in-one HR solution or a traditional broker for your company’s health benefits, it’s nearly impossible to get a clear picture of your ROI. Here’s why:

With all-in-one solutions/PEO:

You’re charged for the platform.
On top of the platform fees, you’re also charged a broker commission.
Typically, you can’t unbundle the fees to figure out what you’re paying for health benefits versus the platform.

With brokers:

You’re charged a commission (make sure you sign off on the exact amount).
A broker’s compensation structure runs counter to your business goal to contain costs.
In addition to the underlying commission, you’re charged additional ‘“fees for service”.
Many brokers push the administrative and service component back onto you. Even if they offer a 3rd party benefits technology, you’ll very likely be on the hook for the heavy lifting:
- Implementing and onboarding your employees
- Managing any backend eligibility issues

How do you choose?

Both options lack cost transparency, making it difficult to choose one over the other. Too often, employers make an emotional decision based on which one feels like the better solution. Other times, they lean towards familiarity.

For example, employers who exceed the sweet spot for a PEO often move to an all-in-one solution when they hit 100 employees. That’s because the PEPM (per employee per month) pricing and service models are similar. Also, they don’t want to take on the administrative burden that comes with a traditional broker.

But there’s a third option to consider. One that combines the best parts of the other two plus adds cost transparency.

Option 3: better benefits, no hidden fees

Over the past 12 months, Lumity benefits consultants have polled hundreds of HR and people ops professionals nationwide. We’ve been benchmarking HSAs, PEOs, and gaining an understanding of what “better benefits” means to employers and their employees.

Consistently, this is what we’ve heard:

“We’d like the consolidated services and platform of a PEO but the flexibility of a broker without the overhead.”

Traditional solutions just aren’t cutting it.

Lumity has designed a comprehensive solution that delivers a viable third option. What’s more, we continue to listen and evolve our solution to meet the needs of high growth, high tech, high engagement organizations.

And we won’t drive you and your finance team crazy with hidden or additional fees.

Unprecedented Benefits Support

Lumity's solution combines expertise, service, and technology to handle your end-to-end benefits needs. We can help you:

Scale without slowing down your people team
Streamline benefits administration
Leverage data to drive better benefits and cost savings at the same time
Deliver an exceptional employee benefits experience
- Open enrollment
- Employee education
- Personalized plan recommendations
- Year-round support for benefits questions and issues

Download Lumity's product sheet