SHRM’s 2023-2024 State of the Workplace Report: All Eyes on Talent and Technology

Quick look: SHRM’s recent State of the Workplace Report highlights how HR leaders are focused on balancing past employee recruiting challenges with responsibly handling an AI-centric future. As brokers and their clients consider what it means for their present moment, the idea of working with a PEO seems like a good place to start.

According to a recent SHRM report, the state of the workplace is in an interesting position. There are past talent management issues to attend to while simultaneously getting caught up to speed with what’s happening in the world of artificial intelligence (AI).

Overall, the report details a demanding-as-ever environment but highlights the one thing that can guide businesses ahead of the competition. Decisiveness.

Diving into the critical issues affecting businesses today gives leaders to focus their strategies and clarity on their solutions. To support these efforts, brokers have the opportunity to lend the HR expertise and services of a professional employer organization (PEO) to make decision-making easier for clients which is beneficial to their growth.

A PEO is positioned to work with small- and medium-sized businesses (SMBs) to meet HR challenges head-on and stay alert to whatever else is waiting around the corner. As it stands presently, the first two items on the agenda are talent and technology, and brokers play a big part in helping their clients reach success in both.

78% of organizations expect to pay more for talent

Though the majority of execs plan to pay more for talent in 2024, inflation can’t be ignored as SMBs look for ways to attract (and afford) top-tier talent. With the rising increase in labor demand and recently introduced pay transparency laws, it’s up to business leaders to put together attractive compensation packages.

However, budgetary restrictions mean SMB leaders must get creative when prioritizing costs and improving efficiencies, which 68% plan to do. Fortunately, a PEO partner answers the call in more ways than one:

Premium benefits at competitive rates

SMBs often struggle with losing talent to larger companies due to the salary and benefits they’re able to offer. A PEO partner gives leaders leverage through Fortune 500-level benefits at competitive rates to entice employees and meet modern demands.

Reduced HR overhead

Outsourcing HR responsibilities to a PEO also reduces the overhead costs associated with maintaining a full in-house HR team. It delegates the complex nature of HR responsibilities to a team of experts and thereby, frees up time for SMB leaders to focus on the next phase of growth.

Personalized benefits

To ensure an effective fit, a tailored approach to benefit management is important. Rather than sticking with what may have worked in the past, confirm if past tried-and-true benefits still make sense. Particularly in the case of options like mental health care, which employees now expect, a PEO partner can help prioritize benefits by current importance.

All-encompassing HR solution

Rather than piecing together services from separate places, SMBs can have all their needs met in one place. Having a single contact overseeing all HR and benefit administration and management streamlines processes in a cost-effective way.

25% of HR departments already use AI

AI has arrived and infiltrated nearly every industry, and in many cases, the technology has worked out well. The projection shows another 26% of HR departments will start using AI tools in 2024, meaning over half could be using them by next year.

However, the report shares only 15% of U.S. employees believe their organizations use AI effectively. Though the possibilities are exciting, rushing into its use without a clear strategy or goals can lead to lost time and costs.

Since one of its key functions is training and development, it could be useful in terms of talent management. Actively explore risks and rewards and study ways to incorporate AI into a talent strategy already in place.

PEOs are familiar with the value of advanced technology and how automation can empower SMB leaders to do more for their workplaces. With ExtensisHR’s Work Anywhere® platform, SMBs can monitor and adjust their reporting to reflect productivity and performance. And through ExtensisHR’s partnership with 15Five, leaders also have cost-effective access to goal management tools that:

• Generate higher employee engagement
• Minimize employee turnover
• Generate peer reviews and social feedback

The value of automation, AI, and any other type of technology is driven by the purpose and people behind it. Making sure there’s a balance between the two is what keeps companies on track and successful.

Aligning a set vision with a PEO partner

The critical issues identified in the report cover several areas SMBs are already aware of. The proposed differentiator is “clear-eyed leadership” to wade through any uncertainties that may arise.

A PEO partner takes on HR and benefits responsibilities so SMBs can focus on other revenue-generating strategies. Looking at HR from a holistic approach, allows business leaders to reach their goals faster and stay in business longer.

A boutique PEO has the time, resources, and efficiencies to deliver a personalized HR solution which includes:

• A full suite of HR and benefit services
• Risk and compliance management
• Recruiting and retention support
• Technology to help clients reach their goals

Services and support are achieved through a collaborative, person-to-person approach with benefits special to ExtensisHR, such as:

• Tailored HR and benefit plans
• A dedicated team of SHRM-certified professionals
• An 11-second, personalized response time
• Industry-backed credentials including ESAC, CI, and CPEO

Challenges and competition are nothing new to businesses, but brokers can put their clients on the cutting edge by introducing them to a PEO partner. In addition to managing day-to-day HR tasks, PEOs stay on top of the latest industry trends and compliance regulations.

When nurturing a book of business, a PEO gives brokers an all-inclusive, effective way to approach a necessary service and optimize the possibilities. ExtensisHR follows HR best practices for managing talent and introducing technology to support SMBs.

Learn how extending your services with a PEO partner can strengthen your positioning and solidify your client relationships. Contact ExtensisHR today.