Quick look: Though “going big” in business is commonly linked to a successful result, “thinking small” can be equally impactful. Therefore, brokers who want to grow their client base should consider the benefits of working with small businesses as there is less market saturation and greater potential for growth. Plus, when partnering with a PEO, it creates a competitive advantage other brokers don’t have.
Sometimes bigger isn’t always better, even when building a strong client portfolio. In fact, small- and medium-sized businesses (SMBs) make up nearly the entirety (99.9%) of all U.S. companies. Yet, this group remains largely underserved. Mostly due to costs, SMBs typically have fewer benefit options than their big business counterparts. For brokers, this translates to an extensive market of (potentially) untapped potential.
Although SMBs may be aware of what’s needed to stay competitive, they usually don’t have the time, budget, or resources to efficiently or effectively reach their goals; thus, presenting an opportunity for brokers to fill in the gaps. By championing growth and bridging the connection to a professional employer organization (PEO) solution, considering small businesses may be the best move.
Here are several ways brokers can connect with SMBs and pave the way for long-standing client relationships.
Take on a consultative role
HR is a full-time responsibility, and with rapid changes playing out over the past few years, having the support of industry experts has become invaluable. It’s challenging to scale while keeping up with industry trends and regulation updates. As a result, SMBs are leaning on their brokers for recommendations and guidance regarding benefit options and compliance requirements.
By connecting clients with a PEO solution, brokers can meet their rising demands and better contribute to their overall success. A PEO takes on all HR responsibilities, including benefit administration and risk management services. Each plan is tailored to a company’s specific needs and has enough flexibility to adapt as the company grows.
Factor in smaller budgets
In addition to time constraints, SMBs face cost limitations, which don’t affect large companies in the same way. While everyone understands the importance of offering robust benefits, budget restrictions often limit options for SMBs. However, brokers can begin to bridge the gap between what’s available and what’s affordable with the support of a PEO.
A PEO like ExtensisHR grants access to Fortune 500-level benefits at competitive prices to retain and attract top talent. Furthermore, a dedicated team is appointed to each client to customize HR plans and provide hassle-free implementation, saving on time, potentially on costs, and frustration. By delegating HR tasks to a PEO, it allows SMB leaders to focus on other areas of operations and development.
Stay current on industry trends and regulations
Traditional benefits like health insurance and paid time off continue to be in high demand among employees. However, voluntary benefits like life insurance and long-term care coverage are increasingly popular. To truly get the most value out of what’s being offered, it’s best to understand the modern workforce and its evolving needs. What’s most sought after now may not be as relevant tomorrow.
Therefore, implementing a one-size-fits-all solution can end up being more costly and less impactful than curating a benefit plan. Additionally, rules and regulations are constantly changing. Everything from workplace safety to employee benefit requirements poses a potential risk for companies.
Even the smallest mistake could result in unexpected fines and reputational damage. Staying competitive is as important as staying compliant, and having a PEO partnership helps keep SMBs on track.
Streamline enrollment and administration support
Connecting clients with a PEO solution also simplifies the decision-making and benefit administration process. With a PEO, all HR services are funneled into one comprehensive plan with remote-friendly support. For instance, ExtensisHR’s Work Anywhere® platform supports distributed workforces and includes a HRCloud, Knowledge & Learning Cloud, Performance Cloud, and Time & Labor Cloud, each working together to optimize growth potential, cost management, and more.
When both online and in-person communication and resources are available, it helps employees better understand their options and drives stronger enrollment participation. Also, providing ongoing employee education empowers workers to choose benefits which best fit their needs rather than rush into making an uninformed decision.
Deliver a personable approach
Today’s world calls for convenience and customization, which means a personal touch is an added value to any service. Clients can tell whether or not you have their best interests at heart. Unlike big-box PEOs, which rely on ticket systems to answer client requests, ExtensisHR takes a hands-on approach and upholds a 95% same-day response rate.
Brokers can count on their team to respond to their clients’ unique challenges and create plans accordingly, so SMB leaders feel prioritized and well taken care of. By working collaboratively, a PEO can begin to anticipate business needs and stay agile when SMBs are ready for a change.
Small business, big potential
Though taking on large enterprise clients is alluring, diversifying a portfolio with SMB clients can lead to promising results. With over 33 million small businesses in the U.S., there is plenty of possibility for brokers to secure client relationships for the long term. And, with the right partner, a PEO can provide an extra competitive edge.
A PEO solution frees up the time and flexibility clients need to grow. It simplifies HR through tailored services, advanced technology, and personalized attention. Most importantly, a good PEO instills trust and confidence among your clients, making the business relationship even more valuable.
At ExtensisHR, we are results-driven and dedicated to excellence. As trusted industry leaders, we are among the 1% who hold CPEO status, ESAC accreditation, and are certified through the Certification Institute for Workers’ Compensation and Risk Management. For over 25 years, we have supported brokers and SMBs in their goals and continual growth.
Making room for small business can be beneficial to any broker portfolio. Contact ExtensisHR to learn more about how a PEO partnership can help you maximize these opportunities.