According to the PrismHR 2016 Human Resources Outsourcing (HRO) Trends Report, 25% of PEOs and ASOs identified finding prospects as one of the most challenging stages of the sales process. With that in mind, we’ve gathered some tips and best practices on how to source prospects. While these resources can help supplement your pipeline, don’t forget to utilize current customers and broker relationships for referrals.
Department of Labor
The Department of Labor (DOL) website is a great resource to leverage for finding prospects. You can search for businesses in a specific geographic area that have had a DOL audit or fine. Instructions on how to search the database are below.
Once I have the information I need, I find the company’s website, phone number, and decision maker, and say something like this:
“I noticed that you recently had an investigation by [name of the agency]. [Name of your PEO] can help reduce your risk. Our team of professionals will help keep you in compliance in the areas of HR, payroll, benefits and workers comp so if you find yourself getting audited again, you can be confident that everything is buttoned up.“
Be ready to share some ways that your PEO can help them reduce their risk. Some common examples include:
- Pairing them with a team of professionals that will be proactive in making sure they are in compliance.
- Providing updates and guidance as laws change.
- Standardizing processes and procedures
- Integrated technology that provides a central location to store documents and provides a paper trail should one be needed for an audit.
How to Navigate the Department of Labor
http://ogesdw.dol.gov/homePage.php
- Click search
- I use “search form” so I’ll click on that
- Typically, it works best to leave it set as “all datasets,” but you can narrow down to the specific investigations/violations you are looking for:
- EBSA – Employee Benefits Security Administration – https://www.dol.gov/ebsa/aboutebsa/main.html
- Violations when it comes to benefits (ACA violations, 401(k) violations, etc)
- Mine Safety and Health Administration – https://www.msha.gov/
- Office of Federal Contract Compliance Programs – https://www.dol.gov/ofccp/
- Most often discrimination cases (hiring, age, wage & hour, gender, etc)
- OSHA – Occupational Safety & Health Administration – https://www.osha.gov/
- Risk & safety investigations/violations
- WHD – Wage & Hour Division – https://www.dol.gov/whd/
- Overtime laws, fair wages, back pay, etc
- EBSA – Employee Benefits Security Administration – https://www.dol.gov/ebsa/aboutebsa/main.html
- Select your geographic region. If your sales organization is driven by zip codes, you can search by a zip code in your territory.
- There are multiple search options you can select from but I always search by either SIC or NAICS code. You can also add more than one search options. I normally choose to add the year as well. I don’t want to get results that are too old.
- http://www.bls.gov/iag/tgs/iag_index_alpha.htm – good resource to find NAICS codes
- https://www.osha.gov/pls/imis/sic_manual.html – good resource for SIC codes
- Also, if you know you have a lot of success selling to doctors, you can always just google NAICS code for doctors office and use that.
- A lot of times, this is quicker than digging through the full lists
The Public Library
The public library can also provide access to a lot of great databases that are great for prospecting. Depending on the library, you may have access to databases that are searchable by NAICS/SIC codes, zip codes, and employee counts. ReferenceUSA is one of the databases that I have access to through my public library, and one that I’ve found to be really beneficial. If you’re not 100% sure on how to find a database that will work for you, don’t be shy! Go to the actual library (yes, they still exist), and ask one of the librarians to help. They’ve always been more than willing to assist, and it’s saved me a ton of time rather than trying to figure it out on my own.
Job Posting Websites and Business Journals
Don’t underestimate the power of job posting websites. Monster and CareerBuilder can provide you with a whole list of companies that are looking to fill Human Resources positions.
Search Human Resources and put in your location. A great introduction call might include:
“I noticed you were in the process of looking for a human resources professional. Have you ever considered outsourcing? Some of the benefits are [list a few differentiators]. Do you have some time either [name a couple of times] to meet?”
Local business journals can provide great insight into prospective organizations. The business journal in my area offers a lot of free content and articles without needing a membership. Looking for articles about businesses experiencing massive growth and expansion, getting funding, opening new locations, etc. These are all great indicators of growth, which makes that business a good HRO prospect. The talk track should go something like this:
“I saw the article highlighting your growth in the [name local business journal]. I wanted to schedule a time to meet with you to discuss how [name your PEO] has helped hundreds of other business like yours’ prepare for their growth. We can help you put together a fortune 500 level benefits package to attract and retain talent, as well as make sure that your HR infrastructure is prepared for the increased number of employees you’re about to have. Do you have time [name a couple of times] to meet?”
Keep in mind that the business journals are also a great resource to stay updated on what is happening in your area. These are the things business owners in your town are talking about. Keeping tabs on these topics is a great way to build rapport and establish your credibility the first time you meet someone.
- Click on “Menu” in the upper left hand corner
- Go down to “Select a city” and see if your city is listed. If it is, click on it and it’ll take you to the page for your local business journal.
Have more prospecting tips and tools, share them in the comments below!