Recessions present significant challenges for businesses of all sizes, particularly small and midsize companies. Rising costs, workforce management challenges, and regulatory complexities can quickly strain resources. In times of economic uncertainty, partnering with a certified professional employer organization (CPEO) like Group Management Services (GMS) offers a proven solution to strengthen operations, control costs, and safeguard long-term success.
As a CPEO, GMS provides comprehensive human resources (HR) services, employee benefits solutions, risk management, and payroll administration bundled into one integrated platform. Our expertise and scale are designed to help businesses remain resilient during even the most challenging economic conditions.
What Is a PEO?
A professional employer organization (PEO) partners with businesses to deliver HR, benefits, payroll, and compliance services through a co-employment model. Under this arrangement, the PEO becomes the employer of record for tax purposes, while the client company retains full control over day-to-day business operations and employee management.
This relationship allows businesses to access resources and support typically only available to larger organizations. According to National Association of Professional Employer Organizations (NAPEO), businesses that work with a PEO are 50% less likely to fail, grow twice as fast, and have employee turnover rates that are 12% lower than businesses that do not utilize a PEO.
How GMS Supports Businesses During Economic Downturns
GMS offers a comprehensive suite of services specifically designed to help businesses navigate economic hardships effectively. Our bundled approach to HR services ensures that businesses can streamline operations, control costs, and focus on strategic initiatives critical to long-term success.
Comprehensive HR and Risk Management Services
During a recession, managing compliance, employee relations, and workforce adjustments becomes increasingly complex. GMS provides dedicated HR support to help businesses navigate evolving labor laws, implement cost-effective HR strategies, and manage workforce changes while maintaining compliance. Our risk management experts also work proactively to reduce workers’ compensation claims and ensure safer work environments, helping businesses lower liabilities and avoid unnecessary costs.
Access to High-Quality, Affordable Benefits
One of the most significant challenges small businesses face during economic downturns is maintaining competitive employee benefits while controlling expenses. GMS addresses this challenge through our Master Health Plan, which leverages our size and scale to provide clients access to comprehensive health coverage at more competitive rates.
This group purchasing power allows businesses to offer robust benefit packages that attract and retain top talent, even during times of financial strain. According to NAPEO data, businesses that work with a PEO can offer a broader range of benefits compared to those that do not, enhancing their ability to compete in the labor market.
Payroll Administration and Regulatory Compliance
Payroll processing and tax administration become even more critical during periods of economic uncertainty. GMS ensures accurate and timely payroll management, supports compliance with evolving regulations, and helps businesses avoid costly penalties. As a CPEO, GMS provides additional assurances through its Internal Revenue Service (IRS) certification that client taxes are managed in full compliance with federal requirements.
Our streamlined payroll services reduce administrative burdens and provide businesses with greater confidence and operational stability when it matters most.
The GMS Advantage in a Recession
The value of working with GMS during an economic downturn extends beyond immediate cost savings. Our personalized approach ensures that each client receives tailored support to address their specific needs and goals. We understand the unique challenges small and midsize businesses face during periods of economic contraction and provide the tools, resources, and expert guidance necessary to build lasting resilience.
GMS’ bundled services simplify HR management, mitigate risk, improve benefit offerings, and ensure regulatory compliance, all within a scalable framework designed to support businesses through every economic cycle.
Prepare Your Businesses for the Future with GMS
Economic downturns are inevitable, but they do not have to dictate the future of your business. Partnering with GMS empowers you to adapt, manage costs, support your workforce, and position your company for sustained success. Contact us today to learn how GMS can help your business navigate economic challenges with confidence and emerge stronger than ever.