February 19, 2021 | By Christie Obrien
Your job as a construction business owner is to keep your business moving. You do that by bringing in new jobs to keep your employees busy. But small business ownership is much more than just getting new clients.
You also deal with countless compliance headaches that plague the construction industry. From worksite accidents and workers' compensation claims to payroll and benefits administration, HR administration duties quickly eat up your time. A trusted partner with expert HR resources can give you back your time. A Professional Employer Organization (PEO) might just be the answer you seek to help your construction business mitigate risk while controlling costs.
Finding affordable workers' compensation insurance coverage can be difficult. Because the construction industry has employees who more frequently suffer on-the-job injuries than other industries, your classification and experience modifier rate, or e-mod, lead to higher premiums. When you partner with a PEO, you join their master plan, giving your construction company access to the PEO's e-mod rate, potentially saving your business a substantial sum of money.
Besides reducing your workers' compensation premiums, you pay less upfront. The PEO has already paid the workers' comp deposit, so you join on a pay-as-you-go basis. Your PEO will also handle your end-of-year HR audit, saving you additional time and money.
A PEO also adds value by responding to and handling all of your workers' compensation claims. Accidents happen, especially in the construction industry. Having a trusted expert you can rely on to handle your company's workers' comp claims accurately is invaluable.
Risk management encompasses a great deal of HR work, especially when it comes to construction industry compliance. The Occupational Safety and Health Administration (OSHA) has many guidelines that must be followed. If your company or an employee is found to be in violation, costly fines can result.
Your PEO works alongside you to ensure that your company adheres to all of the regulations necessary to keep your business safe. The HR experts you partner with will work with you to proactively keep your employees safe on the job by helping implement a safety training program.
Just like workers' comp claims, unemployment claims are time-consuming and ripe for mistakes.
By partnering with a PEO, the HR experts can handle the response to all of your unemployment claims, quickly and accurately. The days of hunching over complicated and frustrating unemployment claims paperwork are behind you. Even if you have an internal HR team, they may inadvertently violate employment laws. These mistakes, while innocent, can be extremely costly and embarrassing to your company.
A PEO will also protect your business through fraud prevention. Some unemployment claims are not legitimate. The HR experts at your PEO will comb through the paperwork, ensuring every detail is correct and aggressively defending your business if a claim is not legitimate.
Besides salary, the most essential item a company can offer employees is a stellar benefits package, including a health insurance plan. But offering great benefits as a small business can often be cost-prohibitive. Potential employees may see a lackluster offering and choose to work elsewhere. Current employees may jump ship for a better benefits package.
When you partner with a PEO, you gain access to their benefits master plan, negotiated at scale by experts. This relationship gives your construction company the opportunity to offer better benefits at prices you can afford.
By offering a benefits package that does not break the bank, you can have a leg up on your competition.
Successfully running a small business is challenging. Successfully running a small construction company even tougher. But with the right partner, you can succeed.
A PEO gives you a positive ROI by helping to keep your company assets safe and enabling cost savings. By properly handling workers' compensation and unemployment claims, a PEO can prevent fraud and ensure only legitimate claims get through. You even save money on workers comp premiums and benefits.
Ultimately, your PEO can help you save money by staying compliant and offering your employees the benefits they seek. This in turn ends with more loyal employees, helping you grow and succeed as a construction company.
Outsourcing your HR needs to a PEO can be the exact push your company needs right now. Even if you have an existing HR team, a PEO does not seek to replace them. In fact, a PEO offers a great complement to in-house HR, providing expert level service so your internal HR team can focus on your core business needs.