The Rich Mosaic of PEO Profitability
A lot goes into PEO profitability. Zoom in, and you see the individual elements of your PEO’s financial and operational picture. Like the individual tiles, or tesserae, in a mosaic, they do not reveal much of a picture when viewed so closely. Zoom out, however, and a rich and detailed picture emerges.
Part of this zooming out is applying business intelligence to your PEO. This requires studying the various metrics and what they mean, developing baselines for improvement, and studying and analyzing areas that lead to the PEO’s success. Some of these areas are accessibility and response, productivity and profitability, client retention and growth, internal retention and growth, and product offerings. By aggregating the results of these analyses, you can create a scorecard to manage the big picture of your PEO’s profitability.