Why a PEO’s Vertical Industry Experience Makes a Difference for Brokers
Quick look: Familiarity with the unique challenges, regulations, and opportunities occurring across different verticals helps to create more relevant HR plans and a better overall experience. Therefore, working with a professional employer organization (PEO) who understands the complexities associated with various types of companies at various stages of growth provides the value brokers and small- and medium-sized business (SMB) leaders need most.
Benefit and HR planning involves navigating multiple roads, unexpected detours, and changing directions in order to reach the intended destination. To design the right roadmap, it requires having experience with the terrain. Brokers can expand their services and network by partnering with a PEO, though it’s important to note not all PEOs are the same.
Because big-box PEOs serve a larger number of clients, this limits their time and resources to provide personalized solutions. And unfortunately, a one-size-fits-all approach isn’t optimal when taking into the account the needs of employees from across different industries. For example, what may work well for a real estate firm may not translate to the HR and benefit demands of a charter school.
However, brokers who work with a PEO like ExtensisHR with in-depth vertical industry experience, and a person-to-person approach, gain the competitive edge and capabilities they need to serve their clients best. It’s an instant advantage when you connect with trusted experts to guide clients down the right path.
Here’s how maintaining a broad range of experience and services benefits brokers and their SMB clients:
Ability to offer customized benefit solutions
In today’s world, everything is customizable. From the everyday coffee order to a curated social media feed, people not only want a high level of personalization, they expect it. Having options gives people the opportunity to get exactly what they need, when they need it.
It’s no surprise this tailored approach is being applied to more impactful decisions, such as employee benefits. Employee needs vary by industry and company, and also, are likely to evolve throughout a person’s individual career.
In industries such as technology, financial services, fintech, and professional services, the fierce competition for talent elevates the importance of employee benefits. This is particularly crucial for smaller organizations striving to attract and retain skilled professionals in a landscape dominated by larger enterprises.
A PEO partner who is familiar with working across a spectrum of industries and workforce demographics can provide greater insight into what types of benefits will enhance employee satisfaction and retention. They also have the time, resources, and technology to adapt to changing benefit trends and demands as they occur.
For instance, the use of mental health services increased by 39% between 2020 and 2022 and continues to be a top requested benefit among all demographics. Being able to prioritize these when benefit planning can make a difference in recruiting and retention efforts. With such an increasingly diverse workforce, certain benefits may become more prioritized by employees over time, and brokers and SMBs must be ready to pivot accordingly.
Expertise in risk management and regulatory compliance
By connecting clients with a PEO partner, brokers provide automatic access to a dedicated team well-versed in HR and benefit rules, regulations, and compliance standards. They are knowledgeable about what’s currently required from businesses and stay alert about compliance measures which may affect companies in the near future. This expertise is particularly useful for industries subject to strict regulatory requirements like healthcare, finance, or manufacturing.
Though many regulations are applied across all industries, there are also specifics within each vertical which companies must be aware of as well. This includes everything from industry-specific labor laws to managing health and safety requirements. It also involves understanding compliance differences between states when businesses are working with distributed workforces.
Incorporating both vertical industry experience and efficiency is especially valuable for businesses in sectors like healthcare and financial services with heavy regulatory burdens or those needing to focus more on core operations than administrative tasks (like startups and technology development).
Brokers who extend their connections and services via a trusted PEO partner can ensure their clients remain compliant and are able to effectively manage company risks while focusing on the bigger picture.
Focus on cost efficiency and competitiveness
SMBs must compete with larger businesses offering more robust benefit packages. A PEO can offer broker clients comparable premium-level benefits and negotiate better rates. This allows business leaders to maintain their budgets without being surpassed by big companies for top talent.
Additionally, a PEO with expansive vertical experience can serve as a strategic partner to businesses. They can provide invaluable insights into industry trends, workforce management best practices, and strategic planning, all of which helps companies to navigate unexpected challenges and capitalize on opportunities. SMBs are better able to assess and take risks most beneficial for their bottom line.
Built-in agility and innovation
Bridging the connection between a PEO and clients gives SMBs access to HR technology with self-service tools to handle critical HR tasks. ExtensisHR’s mobile-first Work Anywhere® platform empowers employees to manage their personal information, benefits, and leave requests, enhancing employee engagement and satisfaction. This is particularly valuable in service-oriented industries where employee morale directly impacts customer satisfaction.
ExtensisHR expands its reach across multiple industries
As a PEO leader, ExtensisHR supports almost 20 unique industries including charter schools, financial services, financial technology, nonprofits, business services, and professional services. Providing the best HR and benefit services for each industry requires knowing how to navigate safety issues, employee retention, increase staff efficiency, and more.
Plus, a person-to-person approach within these various industries allows our team to align with a company or organization’s individual goals. By understanding specific challenges and sharing ideas, it helps us to design attractive benefits packages and create positive workplace environments which meet the expectations of today’s workers.
Furthermore, broker clients receive full-scale HR services, risk and compliance management, and access to a proprietary HR technology platform in addition to benefit administration and implementation. This creates an all-inclusive solution led by a dedicated team closely integrated with each client’s needs and can easily adapt when these change.
Broker competition is nothing new, so it’s nice to have an advantage to guide the way.
Want to instantly add value to your client offerings? Learn how our broker-friendly PEO can support your portfolio growth and client relationships. Contact ExtensisHR today.
