What This Audit Covers

One of the core value propositions of a PEO is access to large-group benefits at rates small businesses couldn't otherwise access. But not all PEOs deliver on this promise equally — and the benefits package that looked strong three years ago may be well below market today.

Our benefits benchmarking audit compares every component of your current benefits offering against current market data for companies of your size, industry, and geography. We identify gaps in coverage, evaluate employee premium share, and assess whether your 401(k) and ancillary benefits are competitive for recruiting and retention.

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Medical plan design & coverage tiers

We review deductibles, out-of-pocket maximums, coinsurance, and network quality across all offered plan tiers.

Employee premium contribution rates

We compare how much your employees pay versus what employees at comparable companies pay for similar coverage.

Dental & vision coverage

We evaluate plan richness, annual maximums, orthodontia coverage, and whether plans are competitive for your market.

401(k) plan features & employer match

We benchmark your plan's vesting schedule, match rate, and investment options against industry norms.

Ancillary & voluntary benefits

We assess life insurance, disability, FSA/HSA, EAP, and other voluntary benefits against what comparable employers offer.

What We Typically Uncover

Every business and every PEO relationship is different. These are the most common issues we identify in this area — most clients recognize at least two or three immediately.

Below-market medical plan design

Deductibles and out-of-pocket maximums that are significantly higher than what employees at comparable companies pay.

Excessive employee premium share

Employees are contributing a higher percentage of premium costs than the market average for their industry and company size.

Missing or weak dental/vision

Dental annual maximums that haven't kept pace with inflation, or vision plans with limited provider networks.

Poor 401(k) match structure

Employer match rates or vesting schedules that are below market, making recruiting and retention harder than necessary.

No HSA or FSA offering

The absence of tax-advantaged savings accounts that most comparable employers now include as a standard benefit.

Limited plan choice

A single medical plan option when companies of similar size typically offer two or three plan tiers.

Our Audit Process for This Area

Benefits summary collection

We request your current benefits summary plan descriptions and employer/employee premium contribution schedules.

Market data comparison

We benchmark your benefits against current market surveys for your industry, company size, and geographic region.

Gap analysis

We identify specific areas where coverage falls below market — ranked by impact on employee satisfaction and recruiting.

Cost vs. value assessment

We evaluate whether what you're paying for benefits through your PEO is proportionate to the coverage being delivered.

Recommendations report

We deliver a plain-language report with benchmark comparisons, identified gaps, and specific recommendations for improvement.

Questions About This Audit Area

What benchmark data do you use?

We use a combination of industry compensation surveys, published employer benefits surveys, and regional market data to ensure comparisons are relevant to your specific situation.

My PEO says our benefits are competitive — how do I know for sure?

PEOs compare their benefits against their own prior-year offerings or against small businesses purchasing coverage independently — not against comparable employers using PEOs. Our benchmark uses the right comparison set.

Can switching PEOs actually improve our benefits?

Often yes. Different PEOs have different carrier relationships and group purchasing leverage. A better-fit PEO may offer richer coverage at the same or lower cost.

Does this audit include our 401(k) plan?

Yes. We review your 401(k) plan design, employer match structure, vesting schedule, and investment options as part of the benefits benchmarking audit.

Ready to Start Your Free PEO Audit?

Free for qualifying companies with 10–150 employees. No obligation, no sales pressure — just honest answers.

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