Why not have a Fortune 500 Employee Benefit Plan?
It’s safe to say small businesses are booming thanks to the start-up phenomenon and entrepreneur-like drive that is sweeping the nation from coast to coast. In March 2011, a significant number of the self-employed, 5.5 percent or about 900,000, had been unemployed in the previous year. This figure was up from March 2006 and March 2001, when it was 3.6 and 3.1 percent, respectively. When the 2017 GOP Tax Reform Plan was passed by the House, we started to see the early effects of what large corporations did with such a huge tax break…and it was quite amazing.
The “Trickle Down” Effect
We have all heard of the “Trickle Down” effect that was made famous by our 42nd U.S. President, Bill Clinton. Since then that practice of giving the “1%” a tax break allows the benefits, of said break, to “Trickle Down” to the upper and middle class thus creating more jobs and potentially investing billions into the economy allowing more Americans to feel more confident about starting a business or keeping an established small business open. Fast-forwarding to 2017 the 45th President, Donald J. Trump, surpassed all odds and passed the largest Corporate Tax Reform Plan in U.S. history. In under 48 hours after the House adopted the motion, AT&T announced that once the President signs the bill into law they would “invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees. Along with AT&T more than 5 other corporation heavyweights in the U.S., including Boeing, followed suit investing hundreds of millions into the economy and into their U.S.-based employees. In other words, the “Trickle Down” effect worked.
In 2017 the unemployment rate was 4.1% (the lowest it has been in 17 years), we started to see competition rise among employers trying to keep their employee turnover down to a low roar. We saw more and more Americans innovating and creating their American Dream, we saw unemployment dropping further and further than it has in over a decade and we saw more and more jobs becoming available to the masses. With more jobs comes more competition among SMBs fighting to keep quality employees on their staff.
Fortune 500 Benefits for the Corner Store Employer
Why do employees jump ship for less pay to go somewhere to do a job they don’t like in order to receive lackluster employee benefits? Well, often more than not, small businesses are seen as stepping stones in the winding and seemingly endless river we call our career path. Nowadays employees are looking for more than just $15 an hour or a specific salary, they are looking for great employee benefits for themselves and possibly their family.
But where to start? How does a corner store employer seek out great benefits for their employees without breaking the budget or taking up too much priceless time? Many SMBs branch out to different employee benefits brokers to find and add additional benefits as they see fit throughout the year(s). This adds up to inflated costs and a confusing spiderweb of various benefit brokers that the employer will have to keep up on and follow in order to track the progression of their benefits. None of this sounds appealing at all to small business owners looking to save as much money as possible while keeping most of their time focused on growing their business. This is where PEO’s come in to save the day.
PEO’s are Changing the Way Small Employers View Employee Benefits
Professional Employer Organizations (PEO) are an eye-opening game-changer for a lot of SMBs across the nation. PEO’s are able to do what most employers cannot afford to do whether that be in time or dollars. PEOs use what we call “Co-Employment” to encompass a business owner’s Human Resource department virtually transferring all of the employer’s liability into a PEO saving that employer money, time, and worry of the numerous and unpredictable liabilities that come with any homegrown business.
Every PEO is different when it comes to what they offer an employer. Payroll, direct deposit, and payroll tax management are some of the most common services you will find among some of the most prominent PEOs in the country. However, when it comes to attracting and retaining quality employees for a workforce, employee benefits should be #1 on an employer’s list when it comes to partnering with a Professional Employer Organization. Since PEOs offer a one-stop-shop for small to midsize business owners, employers now only deal with one entity for all of their HR and employee benefits needs. Because of this, the cost is also less than searching for individual brokers when you piecemeal out various benefits. PEOs are not just here to sell you their much needed and sometimes required services, they are here to grow with you and provide you with the necessary services in every stage of your growing company.
The average overall employee turnover rate in the U.S. was approximately 42% per year, based on 2012 data. However, it is only 28-32% for companies that used PEOs for at least four quarters (NAPEO). Even though PEOs provide results over and over again for small to midsize businesses, most employers still are not aware they exist. Back when PEOs were booming in the early 1990s, one of the most common objections given by employers to PEO companies was “This has to be illegal, it’s just too good to be true”. As the word spreads and more and more PEOs become known, employers across the nation will want to expand their back office by leasing it to a co-employer resolving all of the headaches that comes with owning a business.
Finding the Right PEO for You
Finding a PEO isn’t the hard part, it’s finding the right one that provides the necessary services to grow your business. Since not all businesses are alike, employers should shop with caution before agreeing to a co-employment arrangement.
A PEO that stands out among the crowd is ChampionPEO They are extremely against the grain when it comes to the traditional cookie-cutter PEO we have come to know that usually only provides payroll services. ChampionPEO goes above and beyond when we talk about catering to SMBs. Along with many other services, we provide an extensive Employee Benefits Program that decreases employee turnover and increases overall employee morale. Services include:
- Medical, Dental & Vision Coverage
- Health Care Flexible Spending Account
- 401(k)
- Life Insurance
- Short/Long Term Disability Insurance
- Personal Home & Auto Insurance
ChampionPEO is a one-stop-shop when it comes to employee benefits. From small corner store shops to businesses with upwards of 500+ employees, Champion Employment can personalize the right benefits package for every client they work with. Give them a call today for a FREE quote and consultation 1-(313)67-CHAMP (24267)