Some Hindrances In Generation of Leads For PEOs (Professional Employer Organizations)

Some Hindrances In Generation of Leads For PEOs (Professional Employer Organizations)

Most of the Professional Employer Organizations (PEOs) are neglecting the hindrances that they used to face in the generation of good leads and turning conversions into their potential customers. The primary reason behind this is that they are treating their process of lead generation as though it is not different from lead generation for some other industries such as medical and legal.

Hindrances To Lead Generation
Low Awareness

Less than half or you can say 45% of the business surveys have recognized the term "Professional Employer Organization". Another 22% were able the identification the PEO-like most of the companies do exist. Most of them have become aware of PEOs while doing the searches for related issues such as reduction of HR burdens.

This speaks to a primary difference between the lead generation for PEOs and, for example, legal generation of leads; titles such as law firms, lawyers, law practice, and attorneys are being understood generally by English speakers. Nearly many people are eligible for the accurate articulation of what a personal injury lawyer does.

The term "Professional Employer Organization" is still used to generate so many confusions that all the participants in the study have questioned whether PEOs were of use. The reason behind this is that the participant’s industry was not at all "professional".

Low Understandability of PEOs

Less than half of the businesses might have done the recognition of the term, but besides the recent clients of a PEO, only 10% of them could do the articulation of what a PEO does or why PEO are beneficial. After having read the basic description of what a PEO does exactly, two-thirds of applicants are now noted that now they had some interest to learn more.

Apprehension About Co-Employment

Many problems used to arise when the basic description of a PEO makes use of the term "co-employment agreement". The major problem when it comes to PEOs is a lack of understanding. The problem is a misunderstanding when it comes to co- employment.

The term co-employment gives off the connotation to give up control over employees with no background knowledge. While these apprehensions are able to get dealt with through education, prospects who are scared of co-employment will not seek out that education on their own accord.

Transparency of Costs

The research done by NAPEO in the initial stage found that the cost was the main reason that prospects have rejected the idea o a PEO. However, interviews have uncovered that the complexity is not the raw cost. But, instead of this fear about what will happen with the cost once the PEO is "in the door". This is a problem of trust in a very large part.


The PEO industry is known to be blessed & cursed with extraordinary results. The average ROI for PEO customers is 27.2%. PEO customers are less than 50% likely to get failed. And expected median revenue growth for PEO customers is 40% greater than some comparable non-PEO firms.

PEO customers are 16% more likely to report and enhance profitability. These numbers are inclusive of a "wow-factor" that is known to enhance interest in some. However, it has also raised alarm bells for prospects who have taken into consideration the numbers which are too good to be true. Another common concern was how PEOs could possibly enhance the profitability without getting to know first about the industry of the client.

Apprehension About Effects on Employees

Besides costs, NAPEO has found that the greatest obstacle to prospects that are considering a PEO is the fear that most of the outstanding HR will hurt the experience of employees. Employers are also known to express their concern about how the transition period would lay an impact on the morale of employees.

Tactical ways for the generation of leads for your PEO

As time goes on, the understanding and awareness of the PEOs will be enhancing. However, tactics are required for the generation of leads and for converting them into potential customers. The following are the ways for dealing with the aforementioned obstacles.

Introduction of PEO terms and Benefits

Many prospects are looking for HR outsourcing services that will never do their searches online for "PEO". The reason behind this is that they are not aware of what the term exactly means. However, they might be searching for "outsourcing HR provider" or "HR outsourcing services" or similar terms.

These are the variants that might be featured in the top-of-funnel content for attracting those people who are not aware of the term. For talking about particular benefits of PEOs, the concept might be introduced within the article.

For example, an article with the title "How to save money with HR Outsourcing" is able in giving an explanation of the mid-way through that only PEOs which are able in serving with access to master their health plans.

As we have notified above, the majority of the surveyed businesses have become interested in PEOs when they have learned the definition properly. NAPEO has further found that those who were "interested" in PEOs have become "likely" to make use of a PEO when have presented with impact statements such as "98% of PEO clients would have done the recommendation of a PEO to their small business colleague."

However, till the trust is not built, the impact statements would have got restricted for those people which are impressive but don't use to trigger incredulity.

Give Anwer to the Objections & Build Trust

Co-employment is required to be explained somewhere on your own website for giving answers to the concerns, objections, or misunderstandings that are arising out of it. However, the concept must not get included in the article that is aimed at converting prospects into customers. The study of NAPEO shows that even an off- hand mention of co-employment used to raise concerns with the business owners.

Building trust is a very curial factor for gaining new business. NAPEO has found that the decision of moving forward with a PEO almost ever has the requirement of truth that the PEO "would be able in handling the functions with the same investment and care" than they would do for themselves.

Grow your own PEO company

PEOs have to face a host of marketing challenges about which other verticles should not get worried. Even the competitors of industry such as Human Resource Outsourcing (HRO) Organizations are having the benefits when it comes to understanding and awareness of terminology.

However, when the tactics which are given above are used properly, they are more than enough for convincing, attracting, and converting prospects who are desired to save their money on HR and want to grow their organization at simultaneously.