How MSPs Can Keep Small Businesses Focused

While SMBs with fewer than 15 employees have a number of disadvantages related to their size, there are certain advantages to employing that small a number of people, as well. As detailed in a recent New York Times article, chief among these advantages is that companies with fewer than 15 employees are exempt from compliance with employment provisions of the federal Americans with Disabilities Act (ADA) of 1990 and Title VII of the Civil Rights Act of 1964.

Small businesses that hire that 15th employee open themselves up to a host of additional legal and compliance requirements. How can MSPs help?

Smallest SMBs Avoid Legal Headaches

The ADA requires companies with 15 or more employees to avoid discriminating against people with physical disabilities and also to provide access to employees with physical disabilities. Meanwhile, the Civil Rights Act prohibits companies with 15 or more employees from discriminating in employment based on race, color, religion, sex, and national origin.

Obviously, MSPmentor does not condone discrimination of any kind. However, by staying with fewer than 15 employees, a family-owned business can safely restrict hiring to relatives, for example. Small companies with limited financial resources can also help reduce their exposure to costly lawsuits or mandated facilities upgrades.

Many states have their own regulations that are stricter than federal regulations, so 15 employees is not always a “magic number” for this type of legal protection, depending upon where your business is located. But the fact remains that maintaining a small number of employees can be of benefit to SMBs for a variety of reasons.

MSPs Can Keep SMBs Small

Many small SMBs who for one reason or another prefer to remain out of the boundaries of federal employment regulations may find that growth in their business exceeds the capabilities of a staff with fewer than 15 people. While having more work than you can handle is a much better problem to face than having less work than you can handle, it is still a problem that needs solving. And if new hires are not an acceptable answer, MSPs are often a perfect replacement for new full-time employees.

By providing managed IT services, MSPs can increase SMB efficiency, automate manual processes, eliminate the need for operational and support staff, and also make it easier to extend the corporate network to remote contractors who do not count as full-time employees. Bigger isn’t always better, and MSPs can help SMBs maintain the benefits of a small staff while eliminating the disadvantages.

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