The pandemic changed people’s working lives profoundly, with the sudden shifts to performing work from home amid intensified child care needs and the challenges of caring for sick loved ones.

The prolonged experience created new anxiety and stress that employers need to consider as they return workers back to the office. MetLife’s 2021 U.S. Employee Benefit Trends Study, conducted mid-pandemic in December and January of employees working remotely as well as on-site, found that 37% reported feeling stressed while working more than half the time; 34% reported feeling burned out and 22% reported feeling depressed.

“Given the perfect storm of mental, emotional, physical, and financial stressors employees faced over the last year — and when you consider those pain points in the context of longer work hours and heightened screen time — it’s really no surprise that our collective mental health has taken a hit,” says Jessica Moser, senior vice president, Group Benefits at MetLife.

Even before the pandemic, the U.S. workforce was seeing record cases of employee burnout as the lines between their work and personal lives blurred, she says.

The pandemic, and the social isolation that came with it — “topped by calls for social justice reform, a fickle economy and a charged election year” — only heightened that stress, Moser says.

Thankfully, many employers recognize this and 54% of employees report their employer has become more accommodating to their mental health needs since the pandemic started, according to a poll of by the American Psychiatric Association (APA).

“When the pandemic hit there was so much coming out about the stress and strain people were under,” says Darcy Gruttadaro, director of the APA Foundation’s Center for Workplace Mental Health in Washington.

And openness about mental health in general has become more visible in popular culture with athletes and celebrities and “that hits Main Street,” she says.

“Employers really need to recognize now is the time to focus on mental health and employee well-being because if they don’t, they’re potentially at risk of losing their top performers,” Gruttadaro says.

Distribution of PPE and social distancing upon entry at the Farmingdale location of Piping Rock Health Products. Credit: Piping Rock Health Products

Some ways to support employees, she says, include:

• Let employees know it’s OK to feel unsettled and reinforce resources you have to help them;
• Make mental health awareness visible through, for example, an intranet site that describes warning signs of depression and lists helpful resources; and
• Support your managers, many of whom which have “compassion fatigue” from being on the front line with employees, and remind them OF the importance self-care.

Positive mental health has a direct correlation with having happy productive employees, Gruttadaro says.

‘Clarity breaks’

National Business Capital, a Bohemia-based firm that provides small business loans and services and has brought employees back to the office, understands this. Each morning as a group, employees do stretches and breathing exercises for about five minutes. A meditation and yoga specialist visits quarterly to teach employees. There are “clarity breaks” throughout the day when an employee can clear their mind, says Joseph Camberato, CEO of the firm.

Since the pandemic, employees are allowed one no-questions-asked morning monthly to show up late to handle personal needs, he says.

“As a company we have always put a focus into the health and well-being of our team, both physically and mentally,” Camberato says.

The firm also offers an Employee Assistance Program. EAPs offer a host of services, including mental health counseling that employees can access 24/7, says Erin McKown, director of corporate development and training services at National EAP in Hauppauge.

“People call us for mental health, substance abuse, workplace-related stress and legal and financial assistance,” she says, noting it’s all confidential.

She says National EAP has seen an “18% increase in employees seeking clinical EAP services, such as EAP Counseling and in-the-moment support.” They’ve also seen more companies looking to offer an EAP to employees.

Feeling safe

One such client, Piping Rock Health Products, a Bohemia-based manufacturer, packager and distributor of vitamins and supplements, says it signed up with National EAP last June.

It was a benefit the firm had wanted to offer pre-pandemic, “but the pandemic really highlighted it for us,” says Human Resources Director Jennie Reilly. Employees utilize and “are appreciative of it,” Reilly says.

Beyond counseling, Piping Rock has tried to focus on making employees feel safe through frequent sanitizing of its premises, temperature checks and making sure employees wear masks to enter.

Employers can also help ease anxiety by offering flexibility, says Melissa Yannalfo, a client success specialist at PrestigePEO, a Melville-based professional employer organization. She’s seen employers adjusting and expanding time-off benefits.

With the pandemic, employees took fewer days off, she says, noting some employers are allowing employees to carry over unused days from last year.

Among other efforts she’s seen are more employers offering expanded health and wellness programs, which include offering such things as healthy-cooking classes.

“It’s investing back in the employee,” Yannalfo says.

Fast Fact:

Fifty-five percent of employers think stress has increased at their organization as a result of the pandemic, according to MetLife.

 

By Jamie Herzlich

Already one of the most protective states of employees’ rights in the country, New York became even more so around the turn of the new decade, with several new laws governing the employer-employee relationship going into effect. These laws will have far-reaching impacts on hiring practices, training requirements, employee contracts, classifications and wages. Here is a look at some of the changes that will affect Long Island employers the most.

No more asking what a job applicant makes

Effective Jan. 6, there is a statewide ban on inquiring about a job applicant’s salary history, said Kimberly Malerba, a partner at Ruskin Moscou Faltischek in Uniondale, who chairs the firm’s employment law and digital media practice groups.

“The trend had been moving in this direction, with New York City, Suffolk and Westchester counties and other municipalities passing salary history ban laws previously,” Malerba said. So even before the statewide ban, “we have been telling clients that it is not advisable to ask about salary. Employers need to take questions about salary history off applications and train all people involved in the hiring process to make sure they are aware that this is something they cannot ask.”

As Pam Emerson, director of compliance for Prestige PEO in Melville, noted, “The ban on asking about salary history is a whole new mindset for people, many of whom don’t even realize they’re doing it.”

The rationale behind the salary history ban is that since there is an existing pay gap between what men and women earn, if a new employer were to base its salary offer on what the prospective employee was making previously, that it would perpetuate the gap, rather than allowing the playing field to become even. Women earn 80 cents for every dollar earned by men, according to recent U.S. Census Bureau data.

The statewide law goes further than the New York City law did in that it prohibits employers from considering salary history of current employees who might be up for a promotion, said Emily Iannucci, a member in Bond Schoeneck & King’s Garden City office.

“Someone who joined the company 15 years ago may have entered at a much lower rate,” Iannucci said. “She may have been making less than she should have been for the last 15 years, and if that salary history is taken into account when she is promoted, there will be an ongoing negative impact.”

The New York Equal Pay Act, which generally provided that no employee be paid at a lesser rate than an employee of the opposite sex in the same establishment for substantially equal work, was expanded in October to include protections based on all protected classes.

Human Rights Law applies to employers of all sizes

Signed into law by Gov. Andrew Cuomo last August, the New York State Human Rights Law strengthened protections against discrimination and harassment, including sexual harassment, with a number of provisions going into effect at various times between August 2019 and August 2020. The far-reaching Human Rights Law will be expanded on Feb. 8 to apply to employers with fewer than four employees, who previously were exempt.

“These small employers must now be much more mindful of the discrimination and harassment laws,” Malerba said.

Stephanie Suarez: Employers must investigate every complaint of sexual harassment and follow a specific format for the investigation.

Sexual harassment remains a hot topic

“Sexual harassment in the workplace was all over the news for the last couple of years,” Iannucci said. The headlines may have faded, but the issue remains a big one for employers, who were required to implement an annual anti-harassment training program by October 2019.

“The training has to be done every year, and employees must receive a copy of the company’s anti-harassment policy every year,” Iannucci said.

There is now a much lower burden for employees bringing a harassment claim. “Previously, employees had to show the harassment was so severe and pervasive that it changed the conditions of their employment – that it interfered with their ability to do their job,” said Jillian McNeil, an associate at Jaspan Schlesinger in Garden City. “It was a high standard – it’s currently the federal standard. Now, all the plaintiff has to show is that he or she was subjected to inferior terms, conditions or privileges because of the harassment.”

One of the challenges employers have begun to encounter under the new anti-sexual harassment law stems from the less publicized investigation requirement, according to Stephanie Suarez, an associate at Meltzer Lippe in Mineola.

“Previously, employers had no specific legal obligation to investigate complaints of sexual harassment, although most employers have followed some sort of internal investigation procedure related to complaints (whether formal or informal),” Suarez said. “Now, New York State not only requires employers to investigate each and every complaint of sexual harassment of which the employer becomes aware, but employers must follow a specific format for the investigation, and must issue written findings at the conclusion of every investigation.

” This is a big change, especially because it applies to all employers throughout New York State, regardless of number of employees, she said. “For many small employers, implementing this level of procedural formality may introduce new challenges to the workplace, from identifying which members of staff should be conducting investigations to ensuring the investigation itself and resulting report are fully in compliance with state law.”

Further, in the case of harassment and discrimination claim settlements, employers cannot require employees to sign a non-disclosure agreement or mandatory arbitration agreement, Iannucci said. As McNeil put it, “An employer cannot make confidentiality a condition of settlement.” Employers that have employment contracts with NDAs or anti-arbitration clauses should review them to make sure there is a carve-out for claims of sexual harassment or discrimination, Iannucci said.

Emily Iannucci: Employers must conduct anti-harassment training and give employees a copy of the company anti-harassment policy every year.

Exempt employee salary threshold, minimum wage rise

At the start of the year, the salary threshold required for employees to be considered exempt from overtime went up, from $900 to $975 weekly ($50,700 annually) on Long Island, Malerba said. (It’s not just about salary; certain job duty requirements must be satisfied for an employee to be considered exempt, as well.)

“If employees do not meet the salary threshold moving into 2020, employers have the option to either change their classification to non-exempt and make them eligible for overtime or increase the employees’ pay to meet the salary threshold,” said Jason Flinn, director of client services for Prestige PEO. “If an employee makes close to that level, the employer might want to increase the employee’s salary. But if the employee’s salary is considerably less, it may make more sense to reclassify the employee as non-exempt and make him or her eligible for overtime.”

Keep in mind, Flinn cautioned, if you do change employees to non-exempt, “you are required to track their time. That’s something that employers are not always aware of.” If an employee files a wage-and-hour claim and the employer has not tracked hours worked, the employer will not be able to prove its case, Emerson said, noting the burden of proof falls on the employer.

Additionally, the minimum wage on Long Island rose from $12 to $13 at the start of the year, increasing costs for many employers.

Businesses all around the world have essentially been operating in crisis-mode since the beginning of 2020.

From mandatory closures to continuously evolving regulations around workplace safety, the past year has been a major test of endurance, stability, and pure grit – and it continues as we head further into 2021.

New research from McBassi & Company shows that businesses that partnered with a professional employer organization (or “PEO”) since the onset of the COVID-19 pandemic are 91% less likely to be temporarily closed, and 60% less likely to have permanently closed. Much of this can be attributed to an HR compliance PEO’s role in helping businesses maintain compliance with complex local, state, and federal regulations. The ongoing pandemic only further highlights the value of partnering with a PEO, especially as HR compliance becomes a larger challenge for businesses.

Rather than a replacement for an HR department, a PEO serves as an extension of it. A PEO works with internal HR professionals and management to help manage critical HR functions on behalf of businesses of all kinds, including risk management and compliance services.

A PEO shares a co-employment relationship with its clients, which means clients are relieved of many of the liabilities typically associated with operating a business. Partnership with a PEO shifts all that risk over to the PEO, but it’s important to choose the right one – only 1% of PEOs maintain all three industry certifications that demonstrate financial stability. Be sure to partner with a PEO who maintains these certifications; doing so will fully protect your business in a worst-case scenario.

A triple-certified HR compliance PEO automatically absorbs a number of liabilities, while working to ensure each client maintains compliance with a host of local, state, and federal laws – many of which may be specific to a particular business.

Non-compliance can be costly or even detrimental to businesses, so it’s best to leave compliance to the experts. Whether your business is fully remote or struggling to maintain an on-site workforce, a PEO can provide essential advice and guidance to help your business adapt to a new normal. A PEO makes it easier for businesses to navigate difficult questions surrounding the pandemic, such as vaccine requirements or accommodations for employees with disabilities.

With a PEO, businesses are armed with the support of certified specialists who work around the clock to keep up to date with all policy changes as they happen. They handle all the administrative work required to keep the business compliant, saving your business both time and money.

Even day-to-day HR compliance can be overwhelming. With a global health crisis thrown in the mix, the mass confusion surrounding compliance is understandable. As we look work through another year with no end to the pandemic in sight, it’s more important than ever for businesses to consider the support of a PEO.

A vital resource for New York City’s small and mid-size businesses and its employees expires at the end of this month – unless Congress renews it.

The Families First Coronavirus Response Act (FFCRA) was the first piece of legislation passed by Congress to address the impacts of COVID-19. Prior to its passage in March, there was essentially no sick leave protection for those employed at companies with fewer than 500 employees. This meant businesses had the right to – and often did – withhold pay if an employee was out of work for an extended period of time due to illness.

FFCRA, which first took effect back in April, states that businesses with 500 or fewer employees must continue paying employees on leave as a result of COVID-19. This not only includes sick leave for those diagnosed with COVID-19, but time off in order to care for a loved one impacted by COVID-19. With business grinding to a halt for many employers, however, it was going to be difficult to continue paying employees without federal assistance.

Recognizing the potential financial hardship for businesses temporarily closed or otherwise impacted by COVID-19, Congress also approved a dollar-for-dollar tax credit on wages paid to employees on leave as a result of COVID-19. Small and mid-size businesses have come to rely on this tax credit to maintain operations and keep their employees on payroll throughout the pandemic. Designed to keep money in the pockets of American workers, FFCRA succeeded by enabling employers to continue paying their employees.

One PEO that handles HR and payroll for hundreds of small and mid-size businesses throughout New York reports a total of almost $500,000 in wages paid to employees on sick leave or family leave due to COVID-19 – all if which was eligible for reimbursement through the FFCRA-mandated tax credit.

But now, with no end to the pandemic in sight, New York’s small and mid-size businesses face an uncertain future once again. FFCRA is set to expire on December 31, which means businesses that have relied on the tax credit offered through the program will be forced to find another way to compensate employees affected by COVID-19. Indeed, without FFCRA, employers may be forced to make tough decisions about their employees in 2021. Perhaps most significantly, it’ll expose frontline workers and thousands of others impacted by COVID-19 to further financial harm.

President-elect Biden has already made it a top priority to provide some sort of relief to the American people, but it remains to be seen whether or not a new stimulus package will include a renewal of FFCRA.  Its passage will ultimately depend on bipartisan efforts in Congress, and FFCRA expires before Mr. Biden becomes President.

While FFCRA and the protections it provided didn’t necessarily affect large, white-collar enterprises, it provided a critical safety net for small businesses and individuals that form the backbone of New York City. Renewal of FFCRA is a key part of the effort to keep New York’s small businesses thriving during and after COVID-19.

Few businesses could have prepared for 2020. At first, it was easy to believe the havoc wreaked by COVID-19 was temporary. However, as we head toward a new year, it’s becoming clear that there is no end in sight – at least not in the foreseeable future. While plenty of businesses were in a reactive state for much of 2020, many are now recognizing this moment in time as a critical opportunity to rethink strategy and mid-size company benefits administration operations while there’s still a chance.

Nearly a year since the first outbreak of COVID-19 in the U.S., one distinction is overwhelmingly clear: businesses that have fared relatively well through the pandemic are far more likely to have the support of a PEO, or professional employer organization. This is especially true for small to mid-size company benefits administration (SMBs) working with limited staff and budgets.

PEOs manage employee benefits, payroll, HR compliance, workers compensation and other critical HR functions on behalf of their small business clients, simplifying HR operations and enabling SMBs to focus on their core business goals. Compared to other small businesses, SMBs that partner with a PEO are 91% less likely to be temporarily closed due to COVID-19, and 60% less likely to have permanently closed (McBassi & Company, 2020).

That’s because a PEO serves as an extension of an SMB’s HR department, arming SMBs with an entire team of certified payroll, employee benefits, and compliance professionals dedicated to providing one-on-one support. This level of personalized HR support has proven invaluable to SMBs as COVID-19 continues to impact communities around the world. Below are three ways PEOs are helping SMBs manage the impacts of the pandemic.

The world is changing, and it’s changing fast. Compliance remains a top concern for SMBs as we look toward 2021, especially amid the constant influx of new local, state, and federal regulations surrounding COVID-19. As COVID-19 cases continue to rise, employers must adjust to a new reality or risk facing penalties ranging from fines to far-reaching legal consequences. The shift to remote work continues to make compliance even more complex, as many required communications must now be sent to employees via email or direct mail.

A PEO keeps current with every new local, state, and federal regulation impacting SMBs so their clients don’t have to worry. It also works with internal HR teams to ensure each employee receives the compliance information required by law. With the support of a PEO, small business owners get the peace of mind knowing their business is always protected, and their employees are always informed.

Rising health insurance renewal rates are among the top costs plaguing SMBs year after year. A PEO helps SMBs lower employee benefits costs by providing better group rates. It does this by combining the purchasing power of all its clients to access group discounts on premium health insurance plans from leading nationwide providers, then passing those savings along to clients.

With a PEO, SMBs also receive the invaluable support of certified HR professionals. From selecting the right plans to getting each employee enrolled on time, a PEO serves as a full-service extension of your HR team to help manage every aspect of mid-size company benefits administration. This can help SMBs simplify HR operations and increase productivity by reducing the administrative workload on internal staff. These seemingly small changes can add up to greater efficiency and significant savings over time.

Even with a PEO, however, employee benefit costs can skyrocket over time. It’s important to partner with a PEO that demonstrates a commitment to minimizing costs for their clients.

Many SMBs utilize external payroll services, but a PEO is much more than a payroll service provider. As a co-employer, a PEO assumes certain financial responsibilities on behalf of a business, including all payroll administration and compliance with local, state, and federal tax laws. It’s a much bigger responsibility than simply processing payroll, which means PEOs are able to provide much more comprehensive support. When COVID-19 forced employers to furlough workers and make other payroll adjustments, PEOs were ready to manage it all for their clients and ensure compliance throughout each change.

Federal relief measures in response to COVID-19 included passage of the Paycheck Protection Program (PPP), which provided loans to small and medium-sized businesses to help keep employees on payroll. Many of these loans are eligible for full forgiveness, but the process to both obtain the loans and request loan forgiveness are complicated.

Many SMBs struggle with interpreting the various applications, calculations, and requirements associated with PPP loans and loan forgiveness. On the other hand, businesses already partnered with a PEO received invaluable one-on-one support from payroll specialists as they completed their applications, as well as timely expert guidance on every legislative change along the way. For these businesses, partnership with a PEO proved to be a vital component to success in 2020.

As we get ready to close the books on this historic year, most businesses face more uncertainty than ever before. The global COVID-19 pandemic highlighted how essential comprehensive HR support is to the success of any business. With no end to the pandemic in sight, there’s never been a better time for SMBs to partner with a PEO for comprehensive HR support. Learn more about the benefits of partnering with a PEO for your business at www.prestigepeo.com.

COVID-19 changed how the world works. For small and mid-size businesses (SMBs) especially, it can be difficult to navigate and move forward in a world that is suddenly very different. From managing payroll for a modified workforce to ensuring workplaces are fully compliant and safe for employees, there is a lot to consider. With no real end to the pandemic yet in sight, businesses must adapt to a new normal in order to survive and thrive beyond it.

While this isn’t the simplest undertaking, it isn’t impossible. In fact, for many businesses, success will depend on the ability to remain productive while adjusting to new realities as the situation evolves. Keep reading to learn how partnering with a PEO can help businesses adjust to a new normal.

For many businesses, the most pressing challenge brought by COVID-19 is an interruption of cash flow. Without a predictable influx of customers, businesses are struggling to make ends meet, pay their employees, and plan for the future. Some industries may see permanent changes in business models that could have long-term implications for SMBs far beyond the duration of COVID-19.

The Paycheck Protection Program, a loan introduced by the Small Business Administration (SBA) in conjunction with the U.S. Department of the Treasury, helps businesses keep their workforce employed during COVID-19. The Paycheck Protection Program Flexibility Act provides further federal support for small businesses.

While helpful measures, the various federal assistance programs are complex and require a lot of administrative effort. By partnering with a PEO, SMBs receive the benefit of dedicated support to help make sense of each legislative change, as well as step-by-step guidance in completing required paperwork like loan forgiveness applications.

COVID-19 brought the unexpected shuttering of all kinds of businesses, forcing employers to make tough decisions about their employees. Facing major reductions in revenue and rising costs, many businesses have had to temporarily furlough workers or even permanently lay-off some of their workforce. With new public health concerns at play, employers must also consider all possible reassignment or accommodation measures for high-risk or high-contact employees.

All these modifications lead to mounting administrative workloads as all changes must be properly recorded and implemented. Changes in an employee’s wage and hour status, for example, can impact payroll or an employee’s benefits eligibility. It’s vital for employers to log and address all changes in employment status while keeping up with shifting legal requirements.

Many SMBs utilize external payroll services, but a PEO is much more than a payroll service provider. A PEO, or Professional Employer Organization, is licensed to handle all payroll administration on behalf of your company. Unlike traditional payroll service providers which only handle some parts of payroll administration, a PEO also provides dedicated one-on-one support for all payroll-related matters. During a public health crisis like COVID-19, such support has proven to be invaluable for SMBs. As a co-employer, a PEO assumes certain financial responsibilities on behalf of its clients, including all payroll administration and compliance with local, state, and federal tax laws. It’s a much bigger responsibility than simply processing payroll, which means PEOs are able to provide much more comprehensive support.

The reopening of various businesses across each state, while positive overall, presents a whole new set of challenges for businesses to address. With no true end to the COVID-19 pandemic in sight, businesses must adjust and find new ways to move forward.

Reopening workplaces will require employers to adhere to a wide range of new health and safety regulations, including new sanitization procedures, requirements for personal protective equipment (PPE) such as face coverings, and employee health monitoring. Employers will also have to reconsider their hiring practices, ensuring they are not discriminating against or causing unreasonable distress to high-risk applicants or employees. When your business is ready to welcome employees back, a PEO partner can help you figure out which regulations apply to your business.

Though it’s been a difficult few months, COVID-19 uncovers critical opportunities for businesses to address some of their most pressing HR challenges and implement effective solutions. The benefits of partnering with a PEO to uncover those solutions are more apparent than ever before. As COVID-19 presents new challenges, PEOs are continuing to explore better ways to help SMBs protect their employees and build a more sustainable future.

Andy Lubash, CEO at PrestigePEO

A lot of advice around PEO profitability and growth focuses on sales tactics, marketing campaigns, or other ideas. While these kinds of strategies may bring short-term success, they don’t necessarily lead to long-term growth. Instant gratification is nice, but over time, does the PEO really build on its success?

The true driver of a PEO’s long-term growth is its organizational culture. Organic growth is achieved and maintained by educating your employees, so they can then educate your clients. This fosters deeper client relationships, and over time, it lends to client retention and overall business growth.

Most people are unfamiliar with PEOs. That’s why it’s important to start the training process with the very basics when you hire a new employee, making sure to explain exactly what a PEO does and why. Organic growth begins with each team member fully understanding your value proposition and the benefits of the services you offer, so they can effectively communicate with clients and prospects.

It may sound obvious, but a clueless response is never acceptable to any client inquiry, even if it falls outside the realm of a PEO’s core expertise. COVID-19, for example, has given rise to a number of HR challenges for which there is little precedent on how to proceed. Your PEO’s HR specialists should be dedicated to understanding the evolving HR challenges SMBs face and figuring out the best ways to help lead them forward.

Ultimately, a knowledgeable and well-rounded employee is a valuable sales tool. If you succeed at educating your employees, they’ll succeed at demonstrating the value of each new service or tool you offer to enhance the client experience. Here are some practical tips to consider:

• Educate and train employees to communicate the long-term benefits of partnering with a PEO as opposed to short-term gains like cheaper employee benefits.
• Work one-on-one with clients and prospects to understand their unique pain points and identify how your services could help.
• First impressions are key. Utilize a standard sales presentation to ensure that your PEO is communicating a unified, cohesive value proposition to prospects.

Have you ever been in a meeting with skeptical faces all around the room as changes are communicated? When clients decide to engage a PEO for HR support, their employees generally have no idea what’s happening. Many employees may feel confused or even distrustful of a PEO or their employer if they don’t understand exactly how the relationship works.

Communicating with your client’s employees about the benefits of your PEO’s services is just as critical as communicating with business owners and senior leadership. It’s important to kick off the relationship by establishing clear and open lines of communication with your client’s employees. By introducing your company and its role from the onset, the PEO alleviates initial concerns or doubts about the arrangement. This approach may also help PEOs establish a stronger bond with the client and its employees.

Let’s review: a PEO’s growth over time largely depends on its internal culture. So how does organizational culture translate to client retention? It all comes down to your approach to client service.

Once the client is engaged, sales representatives at many companies tend to fall out of the process as implementation and operations teams take over to manage the client relationship. For true organic growth, however, your PEO’s sales force should remain actively engaged with the client, continuously educating these small businesses and their employees about what’s new and how to improve HR operations.

As your clients grow, so will their HR needs. When clients and their employees trust a PEO, they’ll naturally recognize the benefits of value-added services and support. Be sure to communicate with clients and their employees about new employee benefit programs, technology enhancements, and any other opportunities to improve their HR experience. The key is to always prioritize the needs of your clients and their employees – if you’re investing in educating your team, they’ll know exactly how to help clients in a way that benefits their business and employees, as well as your own bottom line.

It’s also vital to be available and responsive. In today’s digital world, it can be tempting to leave customer service to chatbots or automated responses, but this simply isn’t what clients want. A PEO should keep the “human” in human resources. One effective approach is to ensure that a live representative answers each phone call within three rings. It’s also a good idea to practice a “sundown rule”, which means clients that have open issues are guaranteed a status update at the end of each business day. Maintaining consistent communication with clients throughout the entire customer service process is essential, even when issues are being worked out in the background. Show your clients that you care!

Why all this focus on education and service?

It’s because strong relationships with clients are ultimately a PEO’s greatest sales driver. The value of a PEO’s expertise and support will speak for itself – a PEO that offers the unbeatable combination of a smart and insightful team and stellar service is bound to see organic growth over time. If your clients love your team and service, they’ll gladly share their experiences with peers, partners, and others in their business community. This has been a key ingredient to our own success at my PEO.

PEOs can encourage this by offering incentives for referrals, such as discounts or cash bonuses. A referral program can help PEOs effectively communicate overall value propositions and accelerate organic growth, all with the benefit of personalized testimonials from satisfied clients.

People may not be entirely aware of exactly what a PEO does, but the events of 2020 have awakened many business leaders to the critical need for expert HR support. Small and mid-sized businesses (SMBs) typically lack the resources to manage the complexities of employee benefits, employee relations, risk and compliance, payroll, and the many nuances surrounding HR on their own. COVID-19 has certainly added far more strain and confusion to the mix, leaving many businesses inundated with new HR burdens which they are unequipped to handle.

For PEOs, there has never been a better time to get out there and communicate the benefits of our services to businesses that need them. If you’re already focused on educating your employees and providing exceptional service, COVID-19 presents critical opportunities to continue to deliver on your promise as a PEO. PEOs have seen tremendous growth in 2020 simply due to the fact that we were armed and ready to help clients when they’ve needed it the most. As we look forward to 2021, PEOs should continue exploring new avenues to support clients through these unprecedented times, and truly demonstrate the value of partnering with a PEO.

For a PEO, profitability and organic growth comes down to HR expertise and a commitment to your clients. A happy and engaged client base is your biggest sales weapon – that starts with ensuring your team is prepared to handle your client’s challenges and dedicated to serving as a true partner to their business. As COVID-19 continues to impact our businesses and communities, PEOs have the opportunity to step up as leaders and guide the small business community forward.

It’s never been easy to run a business. While unprecedentedly challenging, the global COVID-19 pandemic is only the latest catalyst for change in a time when change itself has become the new norm. As the world becomes more interconnected, businesses of all sizes are tasked with figuring out how to enact more sustainable business models, deliver new kinds of value, and drive revenue growth. With a worldwide pandemic now also at play, and no realistic end yet in sight, the next decade promises to be a crucial period for make-or-break business transformations.

The business challenges presented by COVID-19 are unique to say the least, and even some of the most long-standing organizations find themselves lacking the resources to truly navigate the complexities currently at hand. Often working with limited staff and resources, small and mid-size businesses (SMBs) are especially vulnerable to turbulence as a direct result of COVID-19.

Most business owners are exceptional at their own trade, but not necessarily great at being an employer. With the onset of COVID-19, businesses are struggling to make sense of new workplace compliance laws, furlough procedures, employee benefits, federal and state financial assistance programs, and managing a workforce during a public health crisis.

For many businesses, the most cost-effective option is to enlist the help of a PEO, or Professional Employer Organization, for expert support in human resources (HR) management. PEOs help businesses reduce HR-related expenses and streamline operations by managing critical HR functions like employee benefits management, risk and regulatory compliance, and payroll administration.

As the business landscape continues to evolve amid COVID-19, the advantages of partnering with a PEO are more apparent than ever. With a PEO, businesses can rest assured knowing that all HR administration and compliance responsibilities are in the hands of certified professionals. They also receive personalized guidance on every HR matter impacting their business – from the most stringent local laws to nationwide CDC guidelines.

One particularly difficult challenge highlighted by COVID-19 is the growing need for businesses to keep up with a near-constant influx of new laws and regulations at local, state, and federal levels. Without internal teams dedicated to understanding each new law and its implications, many small businesses find it especially daunting to keep up with changes in legal and regulatory compliance.

With the support of a PEO, SMBs receive step-by-step guidance to adhere to all legislative changes and complete required documentation; in some cases, a PEO may even handle paperwork and administrative procedures on behalf of clients. Dedicated HR specialists are also available to advise employers on all required workplace signage, compliance requirements, and employee management best practices.

Another major issue presented by COVID-19 is a lack of adequate employee benefits within many small and mid-size organizations. Pricing for benefits like top-tier employee health insurance plans tend to be much higher for SMBs due to their relatively small number of employees in comparison to large enterprises, often deeming premium-level benefits too expensive for SMBs to offer; but it doesn’t have to be that way. A PEO can help SMBs access industry-leading employee benefits while reducing overall costs. This is because partnership with a PEO gives SMBs access to group employee benefit rates typically reserved for much larger organizations. Amid growing public health concerns, it’s more important than ever for SMBs to invest in benefits for their employees – working with a PEO makes it more affordable.

COVID-19 has presented some unexpected hurdles, but it’s also revealed new opportunities for businesses to implement effective solutions to the most pressing modern HR challenges. From managing payroll for a modified workforce, to helping employers ensure their workplaces are fully compliant and safe for employees, the right PEO* always serves as a trustworthy ally to any business.

*Only 1% of PEOs are ESAC accredited, IRS certified and Workers’ Comp Risk Management certified.

A PEO, or “professional employer organization”, is a full-service extension of your HR department. PEOs help small and mid-size businesses manage critical HR functions like employee benefits, payroll, compliance, and HR management. With the support of a PEO, small and mid-size businesses (SMBs) are able to reduce costs, increase employee satisfaction, and dedicate more time to their core business. On average, small businesses that partner with a PEO grow 7-9% faster than SMBs that opt to handle everything on their own. Keep reading to learn three ways a PEO can help your business foster a culture that encourages employee productivity and growth.

According to SHRM, over 60% of employees consider medical, dental, and other benefits to be important factors contributing to their overall job satisfaction; however, offering top-tier employee benefits often seems impossibly expensive for SMBs due to their relatively small employee numbers. This tends to lead to higher group rates for employee benefits like premium medical insurance plans, making it difficult for SMBs to compete with the kinds of employee benefits packages offered by larger businesses.

A PEO, on the other hand, combines the purchasing power of all its clients to access the best possible rates for a diverse range of employee benefit plans. Partnering with a PEO enables SMBs to access those same discounted rates, reducing overall costs while making it possible to offer employees better coverage options.

Research from McKinsey & Company shows that gender-diverse companies are 15% more likely to outperform their peers, and ethnically diverse companies are 35% more likely to do the same. The business case for greater diversity, equity, and inclusion efforts is clear, but data indicates that reality hasn’t caught up yet: according to research conducted by Accenture, 68% of leaders feel they create empowering environments in which employees can be themselves, raise concerns, and innovate without fear of failure — but only 36% of employees agree.

Fostering a more inclusive environment requires a staunch dedication to uncovering and resolving the inequities experienced by marginalized groups. This starts with a commitment to learning and understanding the impact of systemic and institutional racism, as well as unlearning the biases that perpetuate discrimination of any kind.

It can be a challenge for any businesses to figure out how to navigate such sensitive issues on their own. By partnering with a PEO, SMBs can rely on the support and expertise of certified HR professionals to help guide their own diversity, equity, and inclusion policies. A PEO might also provide access to educational resources and referrals to local training programs that may help.

As technology becomes a more prominent part of everyday life, employees expect convenient digital solutions for routine work tasks as well. From tracking time to managing their PTO, today’s employees want digital self-service tools that simplify burdensome procedures and make it easy to stay connected anytime and anywhere.

Replacing legacy systems with new technology can seem daunting, but a PEO can help make the process as smooth as possible. With a PEO’s help, SMBs can choose from a wide range of HR management and productivity platforms to streamline operations, reduce administrative strain, and improve the employee experience. A dedicated team of HR specialists would then work with your business to figure out the best technology solutions to resolve specific pain points and custom configure the platforms to meet your business’s unique needs.

It’s hard to run a business, but you don’t have to do it alone. Partnering with a PEO can help reduce costs, streamline operations, and propel your business toward greater success.

PrestigePEO is dedicated to continuously improving critical HR functions like payroll, employee benefits, legal compliance, and more for our clients. Contact PrestigePEO today to learn more about all of our service offerings.