As you emerge from Covid-19, it’s more important than ever to view human resources as a key entrepreneurial initiative, as opposed to something you simply have to do in order to pay people. The most successful business leaders view HR as strategic, not transactional.
The National Federation of Independent Business (NFIB) Research Foundation, in its 2020 Small Business Problems and Priorities Report, cited the leading concerns of their membership. Here’s a look at the top five – and how working with a PEO can help you address them effectively:
The rising costs associated with health insurance have been the number-one concern of small business owners for the past 29 years. PEOs profoundly influence their clients’ access to affordable insurance options by way of their group purchasing power. They pool employees from various client companies together, which opens the door to medical and other health benefits that rival those offered by Fortune 500 organizations. So if you work with a PEO, you don’t have to break the bank to afford robust health benefit packages or risk losing your best talent to the big corporate player located down the road.
Even before the pandemic, there was a shortage of qualified employees in many high-skill positions. And since businesses have reopened, the problem has only gotten worse. Some companies aer being forced to operate with less than ideal staffing, simply because they can’t find the right people.
PEOs help their clients reduce or eliminate tax liability through strategic benefit plan designs and 401(k) savings plans. And through their co-employment relationship with your company, they become the employer of record for members of your workforce, so employment-related taxes become their responsibility. You still manage day-to-day operations, but without the cost or headache of keeping up with tax issues.
The development of retention strategies that include professional development for employees will be a hotter trend than ever in the years ahead. And with alternative work arrangements emerging as part of the new normal, PEOs will further serve their clients by advising on and helping to implement remote-work strategies.
Legislation from federal, state and municipal levels can come at a small business owner at a speed that makes it almost impossible to interpret. PEOs provide experts to guide you through it, so you don’t get lost.
Lyons HR can help you address all these concerns and more, as you grow your business and position it for whatever the future looks like. Functioning like an off-site HR department, we can manage any or all your talent management needs, from recruitment through retirement. At Lyons, We Are HR. Read our related posts or contact us today to learn more.