a Peo CAN HELP human resources
departments more than ever.
How a PEO Can Support & Simplify Human Resources For Businesses During Economic Uncertainty
It seems like only yesterday that we were talking about the Great Resignation, doesn’t it?
Well, in case you’ve forgotten the specifics, here’s a quick recap: frustrated by years of low pay, long hours and less-than-ideal work environments, millions of Americans left their jobs in the wake of the Covid-19 pandemic. Many of them felt comfortable walking away because not only were they receiving steady unemployment checks – sometimes for much more than what they earned at work – they also saw a seemingly endless amount of available jobs. Certainly, they thought, those positions would be waiting for them when they were ready to get back to work.
And while the labor market still remains relatively strong, especially in the healthcare, retail and manufacturing space, the job openings rate, which is calculated by dividing the number of job openings by the sum total of employment and open jobs, fell from 11.2 million to 10.1 million between July and August. The number of layoffs also increased slightly to 1.5 million, with companies like Amazon and Netflix both downsizing their workforce this year.
Additionally, although the unemployment rate remains at the lowest it’s been in 20 years, experts say that as more people rejoin or enter the workforce for the first time, unemployment rates could rise if the number of jobs does not keep pace with the number of individuals seeking work.
These fluctuations are causing anxiety for some Americans who left their jobs feeling certain they’d easily be able to find something new. Now, instead of feeling like they have the upper hand, they’re less optimistic about what the future may hold.
According to a recent survey on job seeker and job market confidence conducted by FlexJobs, roughly 80 percent of the 4,000 participants said that inflation is impacting their career decisions. Just over 70 percent said the possibility of a recession is also weighing on their minds. Whether they’re contemplating a salary negotiation with their current employer or pondering whether to look for a new position elsewhere, the state of the economy is definitely giving them pause.
“With everything in the news these days about stagnant wages and rising costs, it’s no wonder that people are concerned about their next move,” said Patrick Moraites, partner and VP at Tampa-based Axis Group. “It’s certainly a different landscape than it was a year ago.”
Additional data from the FlexJobs report indicated that a significant number of the people surveyed said they are:
● Feeling less confident in their ability to find a new job, particularly one that can be done remotely
● Unsure if they’ll be able to negotiate salary or benefits
● Spending more time searching for jobs than they have in the past
● Being impacted by layoffs or rescinded job offers
● Concerned about scam jobs
● Regretting their decision to leave a previous position – [related post: Regretting the Great Resignation]
Another survey – this one from ZipRecruiter – also showed that job seeker confidence levels dropped over the summer. However, bolstered by the decline in gas prices, President Joe Biden’s announcement of student debt cancellations and the addition of new jobs associated with the holidays, people are feeling more hopeful about their prospects.
What does all this mean for employers? Well, many of them are grappling with the external challenges of our economic climate while also managing the day-to-day issues that come with running a business.
“Things like payroll, employee paperwork and insurance never go away,” Moraites said. “And a lot of business owners just don’t have time to deal with them on top of everything else they’ve got on their plates.”
For employers who feel like they’re in need of a lifeline, there is help out there, and it can be as simple as hiring a Professional Employer Organization.
A PEO, as it’s more commonly known, is a single-source provider of integrated business services that allows employers to outsource many of their administrative tasks, freeing them up to focus on what they do best. A PEO can handle:
● Human resources activities such as background checks, onboarding, new hire orientation, drug screenings, training and benefits administration
● The creation of an employee handbook
● Unemployment and workers’ compensation claims management and coverage
● Labor law compliance issues
● Payroll processing and assistance with tax forms
● Wellness and mental health programming
● Risk management
● The development of safety policies and procedures
But wait – there’s more! Because PEOs are able to leverage economies of scale to obtain health insurance and other benefits, they can help small companies secure coverage from top carriers at affordable prices. No matter what’s going on in the job market, this is a critical piece of the puzzle for any employer.
For these reasons – and countless others – partnering with a PEO could be one of the best decisions you can make. And the team at Axis Group is here to help you find the perfect PEO to handle your unique needs.
“We’ve been working with business owners from all industries for 20 years and our top priority is to find solutions that make sense for them,” Moraites said. “It’s never about us – it’s about doing the right thing for everyone we work with. That’s what gets us out of bed every morning.”
Ready to find out if a PEO is right for you? Contact us today to set up a no-obligation consultation.