Small businesses in the Southeast today are most concerned about a magnitude of compliance questions, fears of a talent retention crisis, rising inflation, and so much more. Clients need to be able to lean on their PEO to provide solutions to HR problems that keep them up at night, and to keep their business ahead of the curve.
For a lot of SMBS it seems the hits just keep on coming. In reality, these types of situations are nothing PEOs haven’t had to handle before. If anything, these latest challenges have only strengthened PEOs’ purpose and value in the eyes of SMBs as they seek guidance through the rest of 2022 and into the years ahead.
Colorado is a bastion of small businesses and the recreationally obsessed. A staggeringly low employment rate coupled with a transient workforce means that finding and hiring qualified applicants has been the most difficult many of us have seen in our entire careers.
The past few years set the stage for significant upheaval in the regulatory landscape for employers across industries and localities. COVID-19 sent certain regulatory agencies into high gear as they rushed to introduce new policies to meet the unique moment. But the pandemic wasn’t the only factor that reshaped the business landscape. Heading into 2022, concerns around equity, security, privacy, benefits access, and other larger issues took center stage, changing long-held practices at small and large businesses alike—and more of these changes are in the pipeline.
All these challenges can be met by PEOs. It may take some re-engineering of the model, but the PEO service could be central in the reordered economy and business environment in the years ahead. It is a time to be especially vigilant to customer wants and expectations, for many businesses will find it difficult to be profitable. This is where the PEO value proposition will be challenged most.
In May 2022, NCCI issued their Annual State of the Line report which hit on key workers’ compensation metrics and trends impacting the industry. There can be no underestimating the positive results. With an 87% combined ratio, 2021 marked the eighth consecutive year of record underwriting gains.
PEOs can contribute in a meaningful way to find and develop talent by offering internships. Many local universities have resources available to assist in starting an intern program, and talent is already in the pipeline waiting to be tapped. Since finding and keeping talent is a top concern for all employers, now is the time to do some research and begin developing a plan. With proper planning and implementation, an intern program can be very beneficial for the PEO, the student, and the PEO industry overall.
Whether it be the pandemic, the Great Resignation, or sweeping social and regulatory changes, there can be no denying that insurers and employers alike are going through a significant cultural change that hasn’t been seen since the passing of the Affordable Care Act (ACA).
I have to say that having had the privilege of serving as Chair of NAPEO this past year will be a cherished piece of my history when I stop to think about how incredibly blessed I’ve been. Meaningful work coupled with rich friendships have created a wonderful experience for me and I am so grateful to have had the chance to serve.
As the industry continues to grow, we will continue to expand our lobbying presence in Washington. Ramping up our efforts and resources will be necessary to meet the challenges presented to PEOs. The hiring of Mehlman has, and will continue to, helped NAPEO and the PEO industry navigate the many challenges that await.
To better protect your business against cyberattacks, you should be aware of the common cyberattack trends that can put your business at significant risk and best practices to protect to implement.
As insurance brokers, we know we have to start getting some quotes from PEOs, but most brokers are too scared to make the call. Why? It’s partially because we still mostly have no idea what a PEO is among other reasons. So, it’s up to you, the PEOs, to seize the opportunity! Convince us we should want to get quotes from you and make it easy for us. Better yet, teach us how a PEO really works and how businesses thrive with PEOs. Just get group brokers to love your PEO.