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Strategic Insights Business Recovery in the USA and Canada

If media reports are to be believed, Canadians look to be a particularly unhappy lot right now. The recent bout of inflation and interest rate rises appear to have precipitated a specific phase of economic suffering that has spilled over into personal lives, and that misery appears to be uniform across demographic and socioeconomic categories. According to one survey, financial troubles, inflation, and high interest rates are having an impact on Canadians' mental health, driving concern about housing and food.  Millennials, particularly those who own a home, appear to be the most vulnerable to economic downturns as interest rates rise on tight debt burdens and economic damage wreaks havoc on the economy and expectations. Burdened by debt and rising housing expenses, three-in-ten Canadians are "struggling" to make ends meet, with mortgage holders reporting trouble meeting housing bills up 11% from last June. If you have a place to live, you struggle to pay your bills, and
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How Outsourcing Can Help US Businesses Manage Seasonal Workloads

If you own or operate a small firm, "you become chief of IT, HR, compliance, and financials; you are the C-suite," according to Kara Hoogensen, senior vice president of Benefits and Protection at Principal. All of this may be empowering and energizing until it is not. In fact, three out of four entrepreneurs are concerned about their mental health.1 The stress of running a firm and working in various C-suite positions can contribute to the problem If you or your workers are doing too much, outsourcing one or more business-critical services can be beneficial. But how do you select if and what to outsource? Here is how to find it out. Evaluate everyone's workload. The average business owner works roughly twice as much as regular employees.2 And the boundaries between work and home are sometimes pushed (or completely broken). That can be seasonal, such as a busy period for a growing landscaping business, but it can also be non-seasonal. "There's a saying that goes like this: 'Culture is how you feel about work on Sunday evening,'" explains Amy Friedrich, Principal's president of Benefits and Protection.

"Running a small business is always a heavy lift for owners."

Long hours may be specific to one individual or team, thus the solution for you or others who work too many hours may be delegation rather than outsourcing. If you are able to delegate, you may discover an unexpected benefit: staff retention. The chance for career advancement is the second most common reason individuals leave new positions (compensation is number one).3 whether you believe delegating versus outsourcing is a viable option, begin by asking staff whether they want to do or learn more. If it's the latter, reskilling could be another option. It can provide opportunities for new sorts of work, assist team members in taking the next steps in their careers, and aid in the retention of trustworthy staff. However, if workloads truly represent an insurmountable barrier, it is also beneficial to assess their influence on corporate growth. Consider your company's expansion. You have hundreds of company ideas for this year, next year, five years from now, and beyond. However, if you are unable to address any of them, let alone prioritize the list, you may be missing out on opportunities to grow your firm. If this is the case, and delegation is not an option, it may be time to consider outsourcing. Connect with your company leadership network. Mentors, colleagues, and members of various organizations or associations you belong to are all good sources for finding out what they're outsourcing and why. They may also provide useful information regarding how much various services cost. Jerrod Johnson, cofounder and chief values officer of BLK & Bold in Des Moines, Iowa, has used a network at every level of the company's development.

"We are not doing this alone, and we haven't done this alone from when it was just an idea,"

according to him. "We relied on industry experts--people in our area of influence--to assist us make decisions. Categorize probable needs and set a budget. Many important business operations, including social media, marketing, bookkeeping, technology, sourcing, financial planning, tax advice, and human resources, can be outsourced. Begin with a list of areas and prioritize them from "urgent" to "nice to have." While you're completing your evaluation, consider: Is outsourcing temporary or permanent? For example, after you have a particular number of employees, do you want to hire a full-time human resources manager? Set criteria for when to make the changeover so you can establish a baseline. Do you have the funds for more specialist services? Simple administrative activities may be less expensive than more specialist services such as information technology, although the impact may be greater for the latter. That specialized knowledge may also provide additional benefits. "Our financial professional and the team that they have around them help us scale as we reach certain milestones and look at planning, whether it's benefits, attracting talent, or understanding what the competitive market is," Johnson adds. Consider how this will affect your daily life. While outsourcing has the potential to reduce some job constraints, it is not without drawbacks. You must onboard any employees you hire, as well as establish payment and turnaround terms. You will also have to review the work, which may include relinquishing control.Keep in mind the benefits of outsourcing. You probably began or joined a small business because you wanted to create something from the ground up. Outsourcing may allow you to focus on what you truly want to do rather than what you are required to perform.

Take Kori Covrigaru, the owner of PlanOmatic in Denver, Colorado.

He relies on an outsourced financial specialist, but the connection is essentially an extension of his firm. "[They] help educate our people so that they can get the most out of their benefits," says the boss. Covrigaru, like other owners, may not have the time or in-depth knowledge to explain to an employee what benefits or retirement entails--and he has other responsibilities. "Surrounding myself with the right team, [including] a financial professional, allows me to take care of doing my job, which is being a business owner." What solutions does your firm require to expand? Principal.com/businesses provides tools and knowledge. BLK & Bold and PlanOmatic are not affiliated with any member firm of the Principal Financial Group BLK & Bold and PlanOmatic employees' perspectives may not be indicative of other clients' experiences. The information in this message is strictly educational and is offered with the knowledge that Principal® does not provide legal, accounting, investment, or tax advice. You should get advice from authorized counsel, financial professionals, and other consultants on all legal, tax, investment, and accounting obligations and needs. Principal National Life Insurance Company (except in New York) and Principal Life Insurance Company both issue insurance products. Principal Life offers plan administrative services. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are available through Principal Securities, Inc., a member SIPC, and/or independent broker/dealers. The companies mentioned are members of the Principal Financial Group®, Des Moines, IA 50392.Copyright 2024 Principal Financial Services, Inc.

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