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Why doesn’t everyone use a PEO? | PEO Blog

Tuesday November 22, 2011

Why doesn’t everyone use a PEO?  Every time someone asks me that question it makes me laugh. I’ve gotten to the point where I just say it’s all about the light bulb.

It happened again last week, a new client asked me “Why doesn’t everyone use a PEO – Professional Employer Organization?  I chuckled and said, it’s all about the light bulb.  On the back of my business card I have this message…. “Professional Employer Organizations are simply a better way to manage employment.  If you have employees, we help you consolidate the processes required to manage them… including Human Resources, Workers Compensation, Benefits, Payroll and more.  Our concept shares technology, expertise, and services all while taking advantage of pooled purchasing power.  We create employment practices and benefit offerings designed to attract and retain the best employees.”  That’s it, simple and to the point.

But you either get it, and the light bulb comes on, or you don’t.  It’s not about being bright, or smart, it’s about grasping the concept.  Having been a former business owner, when the concept was explained to me 1991, the light bulb went on, and back then I asked the same question, “Why doesn’t everyone use a PEO?”  I was so excited about the concept I changed careers at the time and became a sales agent for a PEO.  (back then it was referred to as Employee Leasing). 

I was convinced that I would have businesses lining up to take advantage of something that was and still is a brilliant concept for businesses.  I mean, having dealt with the minutia of managing employment, it quite honestly made me crazy…I mean seriously, nobody goes into business to have employees.  What a shocker I had in store for me.  To make a long story short, it’s been a frustrating career choice at times, whenever I see those door to door missionaries I always wave and smile, thinking about how they like me have a message they are trying to communicate, like my message about PEO services, their message is either accepted or rejected… what keeps me going are those clients that totally get it, and prospects that are hanging out there just waiting for me to make their light bulb glow!

by Rod Diekema, Rod is the CEO of LLC and Managing Partner of Michigan based Employee Capital Management LLC a leading Regional PEO serving Michigan and Illinois. For more information, please visit or


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