Small and medium-sized businesses often struggle to access effective Human Resources solutions.
Learn how to communicate the importance of PEO partnerships to your SMB clients to support them in this realm.
Human Resources management can be a huge burden for small and medium-sized businesses (SMBs) due to evolving employee trends, new laws, and other operational responsibilities. A recent survey by the Small Business Administration found that 66% of SMB owners cite Human Resource issues as a top concern.
According to a recent survey by the Small Business Adminstration
66%
of SMB owners say Human Resource issues are a top concern for them
Why do SMBs need the additional support PEOs provide?
Here are just a few of the most common needs these business have:
Limited financial, staff, time and expertise resources
Compliance concerns and the requirement to continuously be on top of trends and changes in regulations
Lack of strategic Human Resources support
Lack of clear processes for recruitment and onboarding
Unclear communication for employees regarding benefits and policies
Highlighting improved Human Resources support with a PEO
The first key benefit to convey to your clients is that PEOs are experts in Human Resources issues and solutions. They understand the trends, how to put a customized strategy in place and compliance best practices. They know what works for SMBs and what doesn’t, and how to help them balance cost and reward.
The Benefits of PEO Support Include:
Here are just a few of the most common needs these business have:
Recruitment and hiring assistance
Employee relations, including improved communication solutions
Performance management tools including data analysis
Compliance and risk management guidance
Many of these important focuses just aren’t present for SMBs. With a PEO, they get that dedication for each so the business is covered, employees are taken care of and they don’t have to break the bank to gain access to tools larger businesses have.
Emphasize Compliance Assistance
SMBs have to deal with a complex, ever-evolving regulatory landscape. This is why they must have a compliance strategy to ensure mistakes that could negatively impact the business and its future success are not made.
Potential risks of noncompliance include:
- Financial impacts: SMBs could face fines and penalties, not to mention the cost of disrupting operations or losing clients if they’re uncompliant.
- Legal trouble: Businesses must follow compliance requirements carefully to avoid legal problems. No SMB wants to be hit with a lawsuit.
- Security breaches: Failing to secure business or customer information according to regulations can lead to costly data breaches or other security problems.
- Reputational hits: Any type of claim against a business or security breach could negatively impact its reputation in the community and with clients.
These risks are significant and can be especially damaging for a small business.
PEOs help clients understand their compliance risks and guide them through creating processes and policies that minimize risk and strengthen security.
Tips for communicating with your SMB clients
It isn’t always easy to convince clients that working with a PEO is worth it. These best practices will help you communicate how valuable a PEO partnership can be for SMBs.
1. Educate clients on why comprehensive services are the best
Highlight the fact that PEOs offer a wide range of services that extend beyond traditional Human Resources functions, such as payroll, benefits administration and risk management. Talk about what specific services are included within those umbrella categories. For example, outline that PEOs help SMBs select the right health insurance plan for employees and provide access to large group rates they don’t typically have access to.
These components all work together to improve employee support and management processes.
2. Focus on cost savings for SMBs
Discuss the potential cost savings associated with outsourcing Human Resources functions to a PEO, including economies of scale, reduced administrative overhead and access to more affordable benefits packages. They may see working with an outside party as solely an extra cost, so show them how it will save them money in the long run.
3. Share case studies
Provide case studies or testimonials from SMBs that have benefited from PEO partnerships, demonstrating real examples of improved Human Resource outcomes.
Sharing case studies of specific companies that benefited from PEO partnerships will allow your clients to put themselves in those company’s shoes and imagine success. They also add an engaging human element that goes beyond sharing data points. Case studies provide real-life stories that are more compelling and memorable than simply listing features.
4. Proactively think about potential client concerns
Anticipate common objections or reservations that SMB clients may have about partnering with a PEO, such as loss of control, a new budgeting goal or changes to company culture. Provide reassurance and clarification on any questions they may have. Address these concerns before clients can even voice them. For example, ensure your clients know that the co-employmentmodel of the PEO is not the same as co-ownerships, i.e., co-employment shares business responsibilities, not ownership.
5. Focus on personalization
Tailor your communication approach so it aligns with the specific needs and priorities of each of your clients. Walk through how a PEO partnership can address their unique challenges and goals.
Emphasize the key benefits while being completely transparent about what a partnership would look like. Leave plenty of room for feedback and questions.
Emphasizing the benefits of PEO partnerships
Your SMB clients need ongoing Human Resources support, and PEOs deliver comprehensive, customized services. Improved solutions, like tech tools, as well as enhanced compliance assistance are key for SMBs to stay competitive, efficient and growth-focused.
As a broker, you want to continue to be a trusted advisor for your clients. Show them just how impactful PEO support can be when they decide to outsource Human Resources functions.
Talk to PrestigePEO for additional support and let us know how we can help.
