There are so many threats right now in the PEO industry it is probably tougher than it is ever been. There are still opportunities out there, but the threats are in health care reform, regulation changes and definitely commoditization.
Customer service as a differentiator is interesting in this industry because vendors overvalue customer service compared to what the clients tell us. Clients will leave due to bad service, but they won’t stay due to good service.
Aligning your business strategy to your market and to your customer is obviously critical to your success. So let’s talk about how it gets misaligned and why people fail at it.
It’s an interesting time for small businesses in the global economy. Big businesses have found a way to easily tap into labor arbitrage and vendors across the globe to make themselves more competitive.
CogNet’s governance begins right upfront when we are sitting down and talking about the contract and putting the Statement of Work together. We agree upon what the process looks like, what the units are going through it, what is the cost of that and how many hours will take you to that work.
CogNet’s process focus really comes from my personal experience of being in the HR services business and honestly just not having it.
CogNet delivers value in many ways. I think one of the biggest ways we do it is that my partners and I have personally walked in your shoes. For the last 20 years I have been an executive in the PEO space and the broader HR space in general. So I think our understanding – a keen understanding – of what you go through in a day helps tremendously.
First and foremost in dealing with growth you have to align with the needs of your customer, or your customer’s customer in the HR services industry.
Growing revenues in this market is probably harder than it’s ever been. You’ve got several factors working against you.
The product quality bar is where you have a diverse set of products in your company sorted by company and by product type and by client type and you define exactly what the quality target you need to hit on those items is.