Hiring a PES provider does not generate revenue. It is a payroll expense. Therefore, how can it contribute to revenue? The key is priorities.
Growing a business requires the right talent and revenue. Talent… wants compensation and benefits. Future compensation requires revenue building activities, benefit administration is time consuming, and human resource management is a direct labor expense. Yet, optimum business growth requires that both human resources and revenue building are at peak efficiancy. Talent and revenue – they are competing priorities. However, it is more than a balancing act. It is a choice of priorities. Anyone with the right training can manage human resources, but only you can grow your business.
Employing others in your business involves some risk and human resource management is not a core competancy of most businesses. Any competancy achieved through experience, research, or training is at the expense of effort that could have been expended in future revenue projects: such as designing new marketing materials, pricing negotiations, training, networking with others in your trade, working prospects, branding or completing existing contracts more rapidly.
Therefore, any efforts expended on human resources, are not spent on growing the business. On the other hand, carelessness or a single oversight in the handling of a employment issue could cripple a business.
How do we acheive the peak efficiency of both talent building and revenue? Properly setup, PES services permit the business owner to concentrate on the operational and revenue-producing side of its operations while the PES assumes responsibility and liability for the management of human resources, employee benefits, payroll and workers’ compensation, health benefits, workers’ compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. Thus, the best employees can be attracted and retained through a very efficient process. Revenue building is back in focus.
Often other benefits are acheived that reduce expenses:
- employee benefit packages can be obtained less expensively for a small employer due to the buying power of the larger group of employees serviced by the PES.
- personnel labor hours spent on payroll, reporting, compliance, claims filing, annual health contract negotiations, flex account administration are no longer needed
- business owner has time to better control expenses
- business owner has time to better monitor use of time on the job
A sharper revenue focus and reduced future liability make PES an attractive solution for business owners that want to grow.
Author: Allan Peace, President, Allan Peace & Associates, Inc.; Contact: www.allanpeace.com or 513-353-2526
(C) 2009 Allan Peace
Published 12/12/09