Getting Back to the Business of Running Your Business
Robert Befidi, Jr. and Mark Sinatra
For many companies, the current economic climate has led to a significant increase in the cost of doing business. Employers are facing rising unemployment claims, escalating health insurance costs and a host of other employee-related issues that are not easily resolved. As a result, more time is spent worrying about resources and cost containment, and less time running the core business.
Any entrepreneur worth his salt knows that running a successful business is about more than exceptional products and services— it’s about people. In difficult economic times, and even when things are going well, who a company hires, how they manage performance and their ability to retain top talent significantly impact the bottom line. In my experience, a professional employer organization (PEO) can efficiently manage the complexity, time and cost associated with HR issues, allowing its clients to develop skilled, engaged employees who will go the extra mile and drive the business forward.
A PEO addresses many of the concerns that companies are facing in these challenging times. They offer a breadth of HR solutions that enable companies to reduce their administrative burden, minimize risk and optimize costs so they can focus on maximizing productivity and profitability. These solutions have enabled hundreds of organizations to effectively outsource the administration of HR processes, complex employee benefits, payroll and tax collection and remittance, retirement plans, regulatory compliance and employer risk.
In my experience, outsourcing HR is a strategic move to improve the quality and flexibility of the workforce, while improving an organization’s ability to accommodate change and stay ahead of market forces. The benefits can include cost savings, access to highly skilled advisors and advanced technology, which collectively result in a sustainable competitive advantage. In all my years of business, I’ve learned that HR does not have to be complicated and costly. Outsourcing allows small and medium-sized companies to focus on what matters most— running and growing the business.
A study conducted by the Small Business Administration estimated that the average small business owner spends as much as 25 percent of his or her time on employee-related paperwork. Add the time spent on all other HR tasks and this number often rises to 35 or 45 percent. These are critical figures, especially when every minute and every dollar counts.
When it comes down to it, a strong PEO partner understands how important time and resources are to companies of all sizes. A PEO can deliver a Fortune 500-caliber HR experience to employees while helping the company cut many of the costs associated with maintaining a comprehensive HR department in-house. Ultimately, outsourcing HR through a PEO gives businesses a plan that allows them to stay competitive and profitable for the long-term.