Ignite Business Growth in 2023: 4 Ways Brokers Benefit by Working with a PEO
Quick look: Some things simply work better together. Such is the case with brokers and PEOs. With SMBs wanting to scale, while remaining agile enough to stay profitable, having the strength of a broker-PEO partnership to support them is invaluable. By offering a PEO solution, brokers give their clients the help they need, when they need it, without the risk of severing ties.
After what seems like an endless cycle of unprecedented workplace disruptions, companies are searching for solid ground. Though the chaos from the pandemic-driven years has started to subside, business leaders are faced with a whole new slew of challenges as a result. These include adjusting to a remote-friendly workforce, navigating the spike in voluntary resignations, and addressing new federal and state employment regulations, among others.
In short, companies need help, and they’re looking for someone they trust for answers. Therefore, brokers are being called upon to step up in their advisory roles, leading many to team up with professional employer organizations (PEOs). Rather than working in opposition, they find banding together gives them a competitive edge and boosts business growth.
Through the resources, technology, expertise, and experience of a PEO, brokers have the tools to offer immediate solutions for their small-and medium-sized (SMB) clients. Expanding your network to include a partnership with a team of HR experts adds to your overall value and helps differentiate your services from competitors. Here are four additional opportunities working with a PEO provides and how it can help ignite (and retain) business.
1. Take services to a higher level
Partnering with a PEO has become a strategic benefit for brokers who want to expand their offerings. A PEO delivers a comprehensive suite of services for SMBs who struggle with finding enough time and attention to focus fully on HR. Essentially, PEOs manage a company’s HR responsibilities so CEOs can focus on business goals.
For instance, SMBs face difficulty competing with the employee benefits of larger companies when recruiting top talent. As of November 2022, the U.S. Bureau of Labor Statistics reported SMBs accounted for approximately 80% of the total job openings available in the U.S. A PEO can help reduce this percentage by providing SMBs recruiting and retention services, as well as access to premium benefits at more cost-effective pricing, allowing them to stay competitive among the modern workforce.
2. Reinforce the role of a trusted advisor
Choosing to work with a PEO is a valuable differentiator and secures your position as a trusted advisor. SMB leaders look to their broker relationships for guidance on handling a wide range of issues impacting their everyday operations. As a PEO broker, you give clients access to more resources, answers, and opportunities to educate and assist them as needed.
In addition to HR services, A PEO helps companies quickly adapt to new legislation and workplace trends. This ensures companies are protected and prevents violations and the costs associated with them. It also keeps companies ahead of the curve in terms of hiring and retention strategies. It’s important to have the foundational elements of HR in place but also be proactive and flexible enough to change direction per market demands.
3. Evaluate and mitigate risks affecting SMBs
Being able to look at the big picture is a key part of growing a business, and this includes evaluating potential risks. One wrong decision can set companies back in multiple ways and prevent their ability to scale. By partnering with a PEO, brokers connect clients with HR experts who understand how to handle complex issues.
An area where many SMBs have limited knowledge in risk assessment is compliance requirements. The legalese and technicalities are ever-changing and become increasingly complicated when workforces experience great change. Over the past few years, the increase of remote work setups and flexible schedules has affected industries across the board. There are different federal and state rules regarding employee classification, wages, and paid leave.
Companies must be in compliance with regulations and clear on internal HR processes to prevent liability from a potential violation or lawsuit. A PEO offers risk and compliance services to create, implement, and document what’s needed to protect a company’s best interest; thereby, minimizing risks and freeing up time to focus on advancement opportunities.
4. Leverage HR technology
PEO brokers also deliver their SMB clients assistance to streamline operations and update systems. PEOs use advanced HR software, which allows businesses to conveniently manage their platform remotely. Platform features include everything from employee offer letters to onboarding new team members to benefits management, and more. It also allows SMBs to make faster, more informed hiring decisions and optimize organizational processes which otherwise may be hindering growth.
A partnership to benefit all
SMB leaders are always looking for ways to alleviate time-consuming administrative responsibilities. Delegating HR tasks to an outside team of experts helps to lighten the load. As a PEO broker well-versed in your clients’ specific needs, you eliminate the time, research, and trial-and-error of finding the best solution. And by pairing clients with the right PEO, you remain instrumental in their business growth.
Brokers find joining efforts and working side-by-side with PEOs expands the possibilities and entices SMB clients to stick around longer. We are focused on collaborating with companies to create customized solutions. Our extensive HR services include payroll and benefits administration, risk and compliance management, and recruiting and retention strategy.
Additionally, with industry-specific expertise and over two decades of experience, we maintain a proven history of results and a 93% client retention rate. And, unlike big-box PEOs, we have the time and resources to deliver a tailored, person-to-person experience to empower SMBs to pursue their business goals.
At ExtensisHR, we understand how hard you work to earn client trust, and we recognize and respect the value of this time investment. Operating from a broker-centric mentality, a main focus is to prioritize and preserve a broker’s relationship with their clients and prospects. Therefore, our commitment to personalized service extends to brokers, helping them grow their book of business, as well as the SMBs who utilize our HR solutions.
Our team is here to benefit your client relationships with an all-encompassing, customized HR solution. Learn how a PEO partnership can support you.
