If you’re an owner-operator HVAC contractor trying to obtain good benefits coverage for your employees, you know how difficult it can be. Add to that the stress of managing other HR tasks and it’s a heavy weight to bear.
To lighten your load, you should strongly consider working with a professional employer organization, or PEO.
A PEO for HVAC contractors enables small and mid-size businesses to improve productivity by providing turnkey solutions to payroll, benefits, and HR services. Furthermore, they can assist you with compliance issues under state and federal law so you can keep your focus on your mission to grow your business.
Why Heating and Cooling Contractors Need a PEO
According to a study released in 2021 by the National Association of Professional Employer Organizations (NAPEO), employment growth in the PEO industry was 16 times higher than the growth rate in the U.S. economy overall since 2013.
The study was conducted by noted economists Laurie Bassi and Dan McMurrer of McBassi and Company. Previous studies and research they conducted showed that businesses in PEO arrangements had:
- 7-9% faster growth
- 10-14% percent lower employee turnover
- increased profitability
- higher revenue growth, employee satisfaction and rate of business survival
It makes perfect sense. Working with a PEO enables employees of small businesses to get access to some seriously big-business employee benefits for HVAC contractors. These include insurance (including health, dental, and life), 401(k) plans, dependent care, and other benefits that small companies are not typically able to offer. Companies with even just one employee can receive these world-class benefits.
And the icing on the cake? There’s a return on investment (ROI) of 27% or more for HVAC businesses.
Not All PEOs Are Alike
When searching for a PEO, it’s important to understand that not all provide the same level or kind of service. To find the right PEO for heating and cooling contractors, you want to ensure it is geared for your industry.
In addition, be sure to examine the depth and quality of the services offered. Insist on a PEO with a strong financial, compliance, and client retention record. To assess how well a PEO’s capabilities can meet the unique needs of your HVAC business and the preferences of your employees, ask for references. Talk to a PEO’s existing clients in the heating and cooling industry to determine how well they serve them.
Finally, check whether the PEO is IRS-certified and accredited by the Employer Services Assurance Corporation (ESAC). You don’t want to skip out on this step.
Why Is IRS-Certified Important?
As an owner-operator HVAC contractor, if your small business suffers a catastrophic insurance claim or faces an employee lawsuit for violating state or federal laws, the time and money spent on dealing with this will drain your company’s bottom line. It could be enough to put you out of business. At the very least, you’re looking at a potentially huge financial strain.
An IRS-certified PEO has trained professionals who can take the responsibility of employee administration off your plate and protect your business from the massive amount of government regulations and the high cost of health and workers’ compensation insurance that could cause your HVAC business to take a hit. And you definitely don’t want that.
Ready to Explore What a PEO Can Do for You?
If you’re ready to experience the best PEO for HVAC contractors, don’t hesitate to contact us.
Our IRS certification allows you access to benefits few companies receive. And our turnkey HR services run the gamut from payroll to compliance so you can free up your time and effort to focus on what’s really important; growing your business.
