As businesses across the country are slowly starting to get back to work the economic and human toll of the coronavirus is beginning to become more apparent. Small and medium-sized businesses are being hit especially hard by this pandemic as a joint study by researchers from the University of Illinois, Harvard Business School, Harvard University and the University of Chicago have calculated that more than 100,000 businesses across the United States have closed permanently due to the economic fallout of COVID-19.
With states reopening their economies across the country small businesses are going to have to use every competitive edge that they have in their toolbox to get back to normal. This is where the Professional Employer Organizations (PEO’s) step in to help small and medium-sized businesses bounce back from economic chaos caused by the pandemic.
PEO’s provide payroll, benefits, HR, tax administration, and regulatory compliance assistance among other services to help businesses get back on their feet after being closed for so long. On account of the downsizing that many businesses are having to do to stay lean enough to remain operating, one of the departments that businesses can outsource is their human resources department. Below we’ve listed five big ways that PEO’s help businesses:
Aside from the five points that we listed there are other benefits that choosing a PEO has during these unprecedented times. According to the National Association of Professional Employer Organization, companies that work with PEO’s are 50% less likely to go out of business, have a 7-9% faster growth rate, and have a 10-14% lower employee turnover rate.
While it is uncertain just how big the impact COVID-19 will have on the economy in the long term, the effects that can already be seen have been devastating. This is why small businesses must do everything in their power to try and keep their businesses open while also keeping their employees and clients safe. PEO’s are the choice that can help implement effective changes that can give you a competitive edge like developing infectious-disease plans, discounts on benefits packages for your employees, or assisting in navigating your state’s reopening plan.
Pinnacle’s mission has always been to provide meaningful, yet simple HR solutions for our clients. In light of the spread of COVID-19, we will continue to make good on that mission, so you can continue to focus on your business and the communities you serve.