Though most small businesses are not required to provide health insurance to their employees, those who do may be eligible for tax credits under the...
HR, PEOs and the E-Myth Revisited
Managing a successful business takes a huge amount of time, endless energy and a boatload of industry expertise. But who’s minding the team?
Managing a successful business takes a huge amount of time, endless energy and a boatload of industry expertise. You spend your days looking ahead to what’s next, what’s new and what’s going to make you stand out from the competition. Ideally, you’re able to focus on strategic goals, growth targets and customer expectations.
But you’ve got a team of real flesh-and-blood people working for you. And those folks need to be recruited, hired, trained, paid, and provided with decent benefits and a solid company culture. While you’re focused on doing what your company does best, who’s minding the team?
For many small- and medium-size businesses, the answer is a little iffy. Maybe you’ve got an in-house staffer who knows the ins and outs of HR, but how can you really tell? Many of our clients have no idea of the scope and potential of a solid human resource management program, so hiring the right HR staff is often an exercise in guesswork. You’re left with a potential gap in the team, and that gap could be costing you plenty.
When talking to business owners, I’m often reminded of Michael Gerber’s hugely popular book “The E-Myth Revisited.” One of his most widely repeated quotes is “Work on your business, not in it.” It’s outstanding advice that’s proven to be dead on for so many business owners.
That’s where a Professional Employer Organization (PEO) becomes important. PEOs let you offload those important human resource functions — handling critical tasks like hiring, onboarding, training, payroll processing, employees tax compliance and employees benefits management — to the people who do that best. Unlike the DIY-solution of HR software, a PEO provides access to a team of trained experts that keep the HR work running and possess a deep experience that few small businesses can afford on their own.
The beautiful thing for many of our clients is the affordability of this service. We can help you look at what your current HR is costing you, and show you some alternatives that might really surprise you.
If you and your team want to spend more time looking forward, maybe it’s time to let a PEO take care of HR while you go take on the world.
Gerber is a huge advocate of outsourcing all but your core business activities, so your team can remain focused on what matters. His theory sums up perfectly why outsourcing your HR needs is one of the smartest things you can do to help your business grow.
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