BIP Summer 2025

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If a client doesn’t know you can add value to that decision, they may move forward without you, and it might be too late to stay involved.

PEOs can appeal to employer groups facing challenges such as managing a multi-state workforce or lacking in-house HR infrastructure. For some clients, a PEO may serve as a transitional solution, particularly for startups or fast-growing organizations that aren’t yet ready to sponsor their own benefits plan. In those cases, brokers who remain connected can play a key role when it’s time to reassess and possibly transition out of a PEO arrangement. “Staying visible in that relationship allows the broker to provide guidance throughout,” Mutrux says. Engagement strategies Brokers are also engaging PEOs differently depending on their business model. Some view

PEOs as a referral opportunity for very small groups that don’t align with the broker’s core book. Others consider them a viable option for clients in industries where bundled HR and benefits administration is standard practice. In either case, Mutrux emphasizes that the key is to frame the option in the context of employers' goals. Multi-state coverage is another common driver of PEO conversations. Regulatory differences and carrier limitations — such as residency requirements or minimum participation thresholds—can be difficult to navigate with traditional group plans. PEOs may offer greater flexibility in these cases, such as enabling employees in different states to

access localized plans under a unified structure. Regardless of whether a client ultimately chooses to engage a PEO, Mutrux recommends brokers treat it like any other consulting conversation: as an opportunity to demonstrate expertise and maintain a trusted advisor role. That includes partnering with experienced PEO contacts who will keep the broker informed of key changes like renewals or shifts in the client’s needs.

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