SMB Leaders: Are You Aware of the HR Risk and Compliance Challenges You Face?

Questions to Evaluate When Assessing Your PEO Choosing a new Professional Employer Organization (PEO) is a significant decision, and switching PEOs without identifying the root issues can lead to recurring problems. It can also result in wasted time, money, and effort. Before making a move, it’s crucial to evaluate your current PEO arrangement. Here are key questions to guide your evaluation: 1. Am I Getting the Best Price I Can Get? This is often the first question businesses ask, but it’s also one of the most challenging to answer. Pricing in the PEO industry can be complex, with bundled services and varied fee structures. Conducting an annual PEO evaluation can help confirm if you’re getting competitive pricing or if adjustments need to be made. Even if you stay with your current PEO, this review can provide leverage for negotiating better terms. 2. Does My PEO Respond to My Needs Promptly? Surprisingly, many businesses cite the availability and responsiveness of their PEO’s HR representative as a major pain point. A strong PEO-client relationship relies on effective communication. Evaluate whether your PEO is quick, responsive, and proactive in addressing your needs. If not, it might be time to reconsider your provider. 3. Do I Need Better Accounting Features? Modern PEOs use advanced technology and software to streamline processes. These tools save time and money, which is one of the primary reasons for partnering with a PEO. If your PEO’s accounting features are outdated or inefficient, you may not be receiving the value you expect. 4. Is My Billing Transparent and Understandable? Do you know exactly how your PEO fees are calculated and what services you’re paying for? If your billing is unclear, it’s easy to overpay for unnecessary services. Ensure your PEO provides clear and detailed billing statements to help you track costs accurately. 5. Am I Taking Advantage of All the HR Services I’m Paying For? Sometimes, companies purchase a suite of PEO services but fail to use them all. Identify your business’s specific needs and consider whether you’re fully utilizing the services you’re paying for. If not, explore the option of selecting services a la carte to better align with your goals. 6. Does My PEO Help My Business Operate More Efficiently? If your PEO is causing more headaches than solutions, it’s time to reevaluate. The goal of partnering with a PEO is to simplify HR and administrative processes, not add unnecessary complexity. 7. Does My PEO Make a Lot of Mistakes? Mistakes in payroll, compliance, or documentation can be costly and damaging. A reliable PEO minimizes risk and ensures compliance. If your current provider consistently makes errors, it’s a clear sign you need a change. Common Concerns Businesses Have About Their PEO Here are a few of the most frequent issues businesses face with their PEOs: I want more efficiency. I want better communication and responsiveness. I want to ensure I have the best pricing. I am unhappy with payroll technology. There are too many mistakes. We are not using all the services we’re paying for. I want billing transparency. I need better accounting features. I want a local HR representative. I want to save on health insurance costs. I want to cut costs/fees or see where I can save. The Value of an Annual PEO Evaluation An annual PEO evaluation is a powerful tool to ensure your provider aligns with your business’s needs. It can help you: Confirm if you’re partnered with the right PEO. Identify areas for cost savings and improved service. Provide a strategy for negotiating better terms or transitioning to a new PEO if necessary. Conclusion Partnering with the right PEO is essential to streamlining your business operations and reducing costs. However, without proper evaluation, you risk facing the same issues repeatedly. By asking these questions and conducting regular reviews, you’ll ensure your PEO partnership drives value and supports your business’s goals. If you’re considering a PEO evaluation or need guidance on finding the best PEO for your needs, I’d be happy to help. Let’s discuss how you can optimize your HR and administrative processes for greater success.

Reflect, Refocus, and Recharge: Preparing Your Business for the New Year As we approach the New Year, it’s the perfect time for business leaders to pause and reflect. Looking back at the past year’s successes and challenges not only provides valuable insights but also helps shape the path forward. For small and medium-sized businesses (SMBs), this period of reflection is particularly crucial, as it often reveals key opportunities to streamline operations, reduce costs, and mitigate liabilities. One critical takeaway for many employers? Your most valuable asset is your people. Employees drive innovation, productivity, and ultimately, your success. This realization underscores the need for efficient HR processes that support and empower your team. Why Streamlining HR Is Key for SMBs Unlike larger corporations with dedicated HR departments, SMBs often face the dual challenge of managing lean resources while striving to remain competitive. Inefficient or outdated HR systems can create bottlenecks, leaving your employees unsupported and your business vulnerable to compliance risks. By focusing on your HR processes now, you can: Reduce Costs: Automate routine tasks and eliminate redundancies. Enhance Employee Experience: Provide better access to benefits, payroll, and support. Mitigate Liabilities: Ensure compliance with labor laws and reduce risk exposure. Steps to Take in the New Year Evaluate Current Processes Take a close look at how HR tasks are managed. Are manual processes slowing you down? Is compliance a concern? Identifying inefficiencies is the first step to improvement. Leverage Technology and Expertise Outsourcing to a Professional Employer Organization (PEO) can help you streamline payroll, benefits, and compliance, while also giving you access to HR expertise that would otherwise be out of reach for SMBs. Invest in Your Team Whether through professional development opportunities, enhanced benefits, or a focus on culture, investing in your employees directly impacts morale and retention. Set Clear Goals Use insights from the past year to set measurable objectives for improving operations and fostering growth in the year ahead. A New Year, A New Opportunity As a business leader, the New Year is your opportunity to build a stronger foundation for growth. By focusing on your employees and refining the processes that support them, you can position your business for success—not just for the year ahead, but for the long term. Let’s make 2024 your most productive and prosperous year yet! Ready to streamline your HR and empower your employees? MPower Partners can help you find the right solutions to support your business goals. Reach out today to start the conversation. MPower Partners specializes in helping SMBs simplify HR, Payroll, Benefits, and more through tailored PEO solutions. www.mpowerpartnersinc.com