The astronomical cost of health insurance and related benefits is forcing small and mid-size businesses to cut back on full-time employees. However, in order for companies to continue meeting productivity goals, stay competitive in today’s marketplace and remain profitable, they are turning to Human Resources Outsourcing as a solution to offset the rising cost of employee benefits.

Due to soaring medical costs, it is now estimated that employee benefits make up approximately 30 percent of the total employee compensation dollar. As a result, the days of employers offering first dollar health coverage are long gone.

Presently it is more likely that employers will offer options such as employee contribution, co-pays, deductibles and co-insurance as part of their benefits packages. Yet during these troubled economic times the price tag of these measures is still too high for many small and mid-size companies.

When a company turns to human resources outsourcing as a solution and hires a Professional Employer Organization (PEO) to assume the responsibility of employee benefits, they are able to provide competitive benefits packages while saving a substantial amount of money. This is because many insurance carriers offer PEO reduced prices for employee benefits while offering a full range of healthcare plan options.

By offering comprehensive employee benefits packages, smaller companies are better able to attract, recruit and maintain more qualified employees.

PEO’s not only help small businesses with employee benefits but also assume many other HR responsibilities including:

• Employee/Labor Relations
• Employee Leasing
• Government Compliance
• HR Audits
• HR Consulting
• Safety and Worker’s Compensation

Many small and mid-size companies are finding that by outsourcing their recruitment, HR management and other services that a PEO provides they can expand their core business with greater success.

By leaving the HR management to experts who have years of experience in not only finding a skilled labor force, but also in training and maintaining them, small and mid-sized companies can focus on productivity and growth while cutting costs at the same time.

Smaller companies affected by the present economic climate face more challenges than their larger counterparts. Studies have found that small business suffer more in a bad economy and show lower overall sales than the bigger and more widely recognized companies who rely on their brand name to get them through the tough times.

The fact that lenders have also tightened their purse strings where small businesses are concerned does nothing to help matters. So if it’s sink or swim, how does a small business stay afloat?

The answer to this question is to apply some sound business strategies that entrepreneurs have used during eras of great prosperity as well as throughout the leaner years.

Sound Business Strategies for Small Businesses:

Market like a pro

By taking advantage of mainstream media, which today includes popular communication platforms such as the Internet, mobile marketing and social media, small business can compete with larger brands.

Manage your time and money effectively

By hiring a Professional Employer Organization small businesses are able to cut cost as well as free up their time to focus on the productivity and expansion of their core business.

Keep a staff of well qualified employees

By utilizing a PEO to recruit and manage a sufficiently skilled work force small business can compete in today’s highly technical and quickly evolving marketplace.

Streamline

By reducing waste, multi-tasking and raising efficiency small businesses can step up productivity while slashing their overhead down to a fraction of previous operating costs.

Forecast

By researching trends and focusing on what the marketplace will be responding to in the near future companies can get in on the ground floor and stake their claim to innovative new products and services.

Deliver

By producing and delivering the best products and services possible a small business will build their brand as well as develop something there is still no substitute for; a reputation for excellence.

Turning things around for small businesses and making them more competitive in a difficult marketplace is what outsourcing HR services is all about. Hiring a PEO will provide a small business with the ability to implement the sound strategies that have been the cornerstones of success for many savvy entrepreneurs during both good and bad economic times.

PEO Services Include:

•    Benefits Outsourcing
•    Employee benefits
•    Employee/Labor Relations
•    Employee Leasing
•    Government Compliance
•    HR Audits
•    HR Consulting
•    HR Management
•    HR Outsourcing
•    Payroll Services
•    Recruitment Services
•    Safety and Worker’s Compensation

Saving a small business that is in trouble is not an easy endeavor. However, with the help of a team of experienced professionals most small businesses can find success even in an ailing economy.

Being the little guy on the block is never much fun. However, small businesses are discovering finding that competitive edge has become easier with the help of a (PEO) professional employer organization.

Trying to establish and maintain a business presence in today’s marketplace is difficult enough for large companies but even more difficult for the smaller ones. This is why the little guys on the block are getting big help by choosing to take advantage of human resources outsourcing for recruitment services, HR management, government compliance, employee/labor relations as well as other HR functions.

The current economic climate is making it harder for small businesses to thrive. The high costs of employee benefits and government compliance are forcing organizations to explore new strategies to lower their operating costs to remain competitive. Human resources outsourcing provides the HR consulting and HR management that relieves employers of the many pressures of hiring, training and maintaining their staff.

Small businesses are cutting costs and increasing their efficiency by having an administrative services organization take over the responsibilities of payroll services, safety and worker’s compensation, employee leasing and other HR services.

Whether you have 2 employees or 2,000, utilizing a PEO can help businesses find talented employees as well as offer their management expertise to train and maintain them while lowering costs and saving the employer both time and energy.

A company’s goal is to succeed and become profitable. In many cases this means growth and expansion. A PEO understands the needs of both employer and employee. Their sole focus is to minimize costs while implementing an HR management structure to maximize efficiency.

Taking advantage of the cumulative experience of a PEO provider will help manage everything from employee relations to interpersonal communications between employees and customers.

Regardless of the competition, small business owners do not have to compromise on productivity or profitability. Small business owners can take advantage of the many opportunities for growth and success by using a professional employee organization to achieve the competent HR management that will give them the competitive edge.