Business owners face challenges and opportunities every day as they make strategic decisions for their companies. Not all challenges are created equal, though; here are three that are impacting business leaders heavily in 2017.
Increased competition. It is no secret that the Texas market is growing like gang busters. According to the Texas Tribune, from 2005 to 2013, the state of Texas grew by 345 people per day. Why are so many people moving to Texas? Jobs! Cities in the Dallas/Fort Worth area, such as Frisco, have been dedicated to helping companies move their headquarters to their location. In Frisco alone, one and a half percent of sales tax is dedicated to business incentives to help grow the city.
More businesses moving into Texas creates more competition. What can you do to control your costs and stay competitive? Oftentimes, businesses struggle with controlling costs related to their employees, because they simply don’t know their true costs. Sure, they know each individual’s salary and benefits costs, but they can’t put a hard dollar amount on anything else. If it is not carefully monitored, this cost can easily get out of hand. So what do you do?
- Implement an HR solution, such as a Professional Employer Organization (PEO), that will scale with your company and help manage your costs on the HR and employee administration side.
Retaining talent. The current unemployment rate in the DFW area is 3.8 percent, and on average, according to Glassdoor, it takes about 52 days to replace an employee who either has left or been terminated. It also typically costs about 30 percent of an individual’s salary to replace that worker. What are some of the things business owners are doing to keep their employees?
- Robust benefit packages – Many business owners are getting creative with their benefits and work perks to help attract and retain the right employees, i.e. offering flexible work schedules, ability to work remotely, telehealth solutions, high percentage matching on a 401(k), etc.
- Advanced technology – Advanced technology is becoming more and more important in attracting employees, especially for the millennial generation. If a company’s IT is not modern, prospective employees tend to see their processes as archaic.
- Hiring the right people – Staff One has tools to help our clients predict a successful fit with much greater accuracy. If a prospective employee does not have the personality traits necessary to successfully fill a role, they are more likely to turn over.
Knowing how and when to comply with federal regulations. Federal regulations change on a regular basis and the threshold for compliance is different for each business. While the new administration is proposing less regulation, it is still proposing change, which potentially means more confusion. Regardless, compliance is not a choice…it is a requirement, and there are fines associated with non-compliance. Business owners need a trusted partner with a dedicated team that keeps up with these changes. However, that team doesn’t need to just stay abreast of the changes, it must have the skills and expertise to strategically implement solutions for the business. Partnering with a PEO gives a business owner a partner with a vested interest in keeping the business compliant.
According to the National Association of Professional Employer Organizations (NAPEO), companies that partner with a PEO are 50% less likely to go out of business. Not only does a PEO manage administration and compliance, but having a PEO partner can also provide the business owner peace of mind knowing that their partner is proactively managing their HR liability.
For more information on how a PEO can help your business overcome its challenges, contact the author directly at email@example.com.