Mike Harrington — January 29, 2018 — January 29, 2018
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As an accountant, lawyer, or business banker, you might find yourself in the position of receiving requests from clients for advice in areas that are not in your wheelhouse. This can put you in a difficult position. You want to support your client’s business needs and further your relationship with them in the best way possible, but you could be at a loss as to how to advise them. During the early months of the year as tax season gets into full swing, these requests might come more frequently. When it comes to advice regarding the HR department, being able to recommend a great Professional Employer Organization can be a simple and effective way to assist your client.
Streamline Processes and Drive Efficiency
HR is likely one of the biggest headaches for your clients. They get tied up in mountains of paperwork related to personnel and confusing regulations and subsequently cannot focus completely on the product or service at the core of their business expertise. Likewise, your client may not be able to afford to implement the latest HR technology such as online employee portals that can be expensive for small to medium-sized companies. An experienced PEO partner can take over all HR operations, including employee management and payroll, thereby eliminating the hassle of late paychecks and dealing with unresolved employee conflicts or complaints.
The numbers don’t lie. Businesses that outsource HR to a PEO are 50% less likely to fail and grow 9% faster than those that don’t outsource. That’s because a PEO makes drastic improvements to processes that increase efficiency and free up resources. Communication is enhanced, and surveys can be disseminated in order to improve employee engagement and morale. With happier employees and a more streamlined HR department, recruiting also receives a boost. In sum, just as your client is engaging with you because you’re an expert in a certain area, so too is a PEO an expert in all things HR. After all, you wouldn’t expect your client to do their own legal work or to file their own tax return.
Better Manage Business Risk, Liability, and Compliance
A single OSHA violation or discrimination/harassment claim can result in a hefty fine or devastating bad press for your client. Unfortunately, this often has a ripple effect throughout every organization your client partners with, including you. As showcased so often in recent news items, nobody wants to be remotely associated with any sort of workplace lawsuit, especially those that involve harassment or discrimination.
In the public eye, by working with someone you’re vouching for their credibility. This means that a PR disaster for your client is a PR disaster for you. Further, a massive fine can cause a client significant financial strain that makes it difficult for them to continue engaging with the outside service offerings you provide. Outsourcing HR to a PEO like Synergy can implement effective compliance training focused on reducing risk and liability by educating all of a client’s employees, making policies clear, and putting procedures in place for recognizing issues and taking appropriate action. These practices greatly reduce the potential for debilitating violations and fines.
Increase Health Benefits While Reducing Cost
Especially for your clients that are small to medium-sized businesses, one of the biggest reasons for partnering with a PEO is to improve health insurance offerings. A PEO connects an organization’s employees to a much larger employee base, which results in lower premiums and better coverage. Benefits are a huge expense for employers, and this makes it cheaper for all parties without having to even deal with the headaches that modern healthcare brings.
A PEO provides experts in healthcare changes who can keep staff up to date and informed. Ultimately, a healthier workforce is a more productive one that also serves as a strong recruiting tool. Great benefits also make it hard for employees to leave, and are a big reason why companies that partner with a PEO enjoy a 14% lower turnover rate. When your client is operating at their peak, it in turn makes it that much easier to provide your services to them effectively.
Improve Training Across the Enterprise
Have you ever had difficulty in communicating with a client? Maybe it was a CEO that wanted to micromanage your service offering or a manager that was wildly disorganized. A PEO can provide expert executive coaching, managerial training, soft skills training, and general employee training that alleviate these and other barriers to productivity. Sometimes it’s difficult for an organization to recognize that there’s a problem from the inside. Based on your relationship with your client, they are relying on you for your honest business opinion. If you’re able to notice an issue or inefficiency that they missed and can offer them a quick and cost-effective solution such as recommending a proven PEO, then you’ll become a true trusted advisor to that client.
The Benefits of Clients Outsourcing HR
At the end of the day, the better your clients can succeed the more they will need your services or products. A business that partners with a PEO enjoys a 21% cost savings on HR. If you’re the person that can help usher in such a dramatic savings for them, you can rest assured a client will value your relationship more than ever. Being a great lawyer, accountant, or banker for your clients is wonderful, but becoming a trusted advisor sets you apart by making you an essential part of their organization.
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