The pandemic has undoubtedly been an eye-opener for all of us, proving to mankind once again that uncertainty is the only certainty. It is evident that the business world went through drastic changes to adapt to the ‘new normal’ we are currently living in, which included a renewed appreciation for professional employer organizations (PEOs). This year, all organizations came into realization that, possessing the appropriate resources to support new and/or complex compliance, payroll and benefit regulations is highly important.
The outcome of the above has made the service and support to the clients by their PEO’s more focused and strategic for the better part of 2021. Proceeding to 2022, PEO’s will continue to change and mold their strategies accordingly to provide the best value. Here are few predictions.
The relationship between PEOs and clients will prosper
The ‘work-from-home’ concept that had to be followed helplessly by many businesses due to the pandemic caused many entrepreneurs and business leaders to seek aid from their PEOs. As we continue to seek aid from the PEOs expertise on how to prepare our future plans and goals stepping into 2022, this relationship will continue to prosper.
PEOs will be more into tech, software will change
The pandemic made it mandatory for numerous industries to cut down on their workforce. However, now with more and more people returning to their pre-pandemic schedules such as travelling and dining-out, the need to increase the workforce quickly and substantially has become a necessity for some industries although a few were able to either recover fully or partially from it. This has indeed led the employers of the small and mid-markets (who suffered the most due to the pandemic) to look out for more durable and reliable applicant tracking software in large quantities. PEOs will have to depend on tech more often in order to meet the clients’ needs which may come with a change in loyalty such as switching HCM providers more frequently than before. PEOs that are unable to currently offer applicant tracking, as an example, will require evaluation of HCM technology companies that deliver a more all-inclusive platform.
Compliance and HR functions will remain key
A certainty in 2022 is that compliance will remain a key selling point for businesses reaching out to PEOs. Since PEOs are required to stay in compliance with federal, state, and local governments, their clients can concentrate on strategies of a larger scale and count on their trusted business partner to deal with some of the more monotonous, legal operations. Moreover, Underwood spotlighted that HR is yet a selling/retention point for PEOs. For example, since unemployment administration and rates affect everyone, PEOs can aid to enclose their clients from major increments, since the PEO has a bigger base to spread out claims.
While we are still unaware on how the pandemic will take shape in 2022, PEOs are in a position to help their clients adjust and resist disruption – not just in the forthcoming year, but also in the years to follow.