business owner "floored" by success with PEO
You’ll Be “Floored” Seeing What PEO Can Do For You
Even though a growing number of employers have welcomed their team members back to the office, there are still plenty of people who are working from home. Spending all that time at home has driven many of us to want to revamp our homes by making a few aesthetic changes to the place that we now call home AND work. Those neglected offices are now being utilized creating a gold rush for the home improvement and repair industries. What has been one of the most popular change to homes around the United States? Flooring, carpet, and tile. Those once neglected rooms for some have now become priority.
According to a study by Harvard University’s Joint Center for Housing Studies, home improvement and repair spending grew by nearly 3 percent to $420 billion in 2020. Additional data shows that the number of people researching home remodels online has doubled from 2020 to 2021. And based on information from the U.S. Census Bureau, 22 percent of homeowners plan to spend between $5,000-$15,000 on home improvement projects. That’s a pretty big chunk of change – and a pretty big pile of dust!
With housing prices continuing to skyrocket, more and more homeowners are opting to go the home improvement route rather than trying to purchase something new. That means the demand for skilled labor – especially in the fields of masonry and flooring – is off the charts.
“Anyone who is involved in the home improvement industry is pretty busy these days,” said Patrick Moraites, a partner and vice president at Tampa-based Axis Group. “It’s a good problem to have, but these companies need to make sure they’re doing everything they can to protect themselves and their employees.”
So how do they do that while still managing to show up for jobs, schedule consultations and pick up supplies? The solution could be as simple as hiring a PEO.
Not sure what a PEO is? You’ve come to the right place for answers! A PEO, or a Professional Employer Organization, is a single-source provider of integrated services that allows business owners to outsource many of their time-consuming administrative and employee-related functions. In other words, these tasks get shifted from the jobsite employer to the PEO, which in turn frees them up to take advantage of all the opportunities available in the white-hot home improvement market.
“PEOs and masonry and flooring companies really are a great match,” Moraites said. “PEOs understand the needs of these types of businesses and can provide great support for them as they grow.”
Aside from taking over administrative tasks, one of the key benefits of a PEO is that they can help companies get workers’ compensation coverage from top carriers at affordable prices. This is especially important for companies that are just starting out.
“Masonry and flooring work can be dangerous and if you can’t show a proven safety record – which you obviously won’t have if you’re brand new – you won’t even be able to bid on a job,” Moraites said. “PEOs are aware of the risks associated with these fields and they’re not scared to take them on.”
Additionally, PEOs can help both new and established flooring and masonry companies promote safety by working with them to create training courses, perform inspections and develop handbooks that outline the proper procedures for employees to follow. This can reduce the number of injuries happening on the job and lead to significant cost savings over time.
Not convinced yet? Here are a few other ways that PEOs can support masonry and flooring companies.
- PEOs can help regulate your cash flow: Even though there is seemingly a limitless amount of work in construction-related fields right now, there can still be downtime, especially if you’re stuck waiting for materials that are stuck on a container ship in a far-flung port. When you work with a PEO, policies are pay-as-you-go, which gives you the ability to plan ahead to ensure you always have money coming in to pay the bills – and your employees.
- PEOs can take care of payroll: No one ever started a flooring or masonry company with the dreams of processing payroll. Well, no one we’ve ever met, anyway. By hiring a PEO, you can cross payroll and other tax-related tasks off your to-do list with the assurance that the PEO will make sure you’re in compliance with state and federal regulations.
- PEOs have some pretty sweet technology: If you’ve ever had to spend hours inputting PTO requests or employee records into an Excel spreadsheet, you’re probably not in a hurry to do it again. When you hire a PEO, you’ll have access to HRIS technology that can simplify your record-keeping processes and make it easy to track down the information you need when you need it.
- Health insurance: Small businesses can have a difficult time obtaining quality health insurance on their own and this can make it hard to retain talent – and to attract new hires. However, because PEOs are able to leverage economies of scale, they can connect small business owners with high-quality benefits that might be off limits to them otherwise.
If you’ve thought about going the PEO route, this could be the perfect time to make the leap – and the team at Axis is here to be a resource every step of the way.
“We work with a number of PEOs that support masonry and flooring companies so we can help you find the best one to fit your needs,” Moraites said. “It’s all about helping you make an informed decision for the future of your company.”
Ready to start exploring your PEO options? Contact us to set up a consultation.