Thinking of Moving Your Business Out of Connecticut? Consider This First

“I Love Connecticut, But…”

Let’s be real for a second. You opened your business here because you adore Connecticut—the talented workforce, the thriving communities, the accessibility to major cities. But now? The sky-high prices, the never-ending regulations, and the inability to compete with large corporations have you eyeing states like Texas or Florida.

Before you begin packing boxes, let’s have a conversation. What if you could maintain your roots in Connecticut and address those pain points—without the anxiety of relocation? Spoiler: It’s doable. And it begins with knowing why businesses depart and how working with a Professional Employer Organization (PEO) like OEM America can fix those problems.

Why Are Businesses Leaving Connecticut?
No doubt some businesses have closed up and moved out of the Constitution State. High-profile exits such as Duracell relocating its R&D hub to Atlanta have left eyebrows raised and questions being asked about Connecticut’s business climate.

Common gripes among business owners include:
High Operational Costs: Connecticut’s high living costs and lack of affordable housing hinder labor force expansion.

• Energy costs: 56% higher than the national average.
• Commercial property taxes: 3rd highest in the U.S.
• Workers’ comp rates: 20% above average.

But here’s what relocation brochures won’t tell you: Moving ain’t cheap, either. The typical business shucks out 50k−150k for a move, plus hidden expenses such as rebranding, employee transition, and lost local customers.

Regulatory Challenges: Managing Connecticut’s complex business regulations can be overwhelming, particularly for small and mid-sized firms.​ 67% of CT companies rank compliance as their biggest stress inducer (CBIA).

Talent Acquisition and Retention: CT’s unemployment stands at 3.5%. But running away to “less expensive” states frequently has unforeseen consequences:

• 55% of relocated employees quit within 18 months (SHRM)
• States like Texas have lower unemployment (3.9%) but higher competition for skilled workers.

Enter the PEO: Your Business’s New Best Friend
Before you pack the boxes, let’s consider a solution that may solve some of this headache: leveraging a Professional Employer Organization (PEO).

What Exactly Is a PEO?
Consider a PEO your outsource HR team. They will take care of everything from paying employees and managing benefits to maintaining compliance with state and federal employment laws.

How Can a PEO Help Your Connecticut Business?

• 1. Cost Savings: By pooling employees from multiple companies, PEOs can negotiate better rates for health insurance and other benefits, leading to significant savings for your business.
• 2. Regulatory Compliance: It’s no easy task to keep pace with Connecticut’s labor laws that are constantly in flux. PEOs remain current on these developments so that your company can stay compliant and avoid the expense of costly fines.
• 3. Talent Management: PEOs frequently include recruitment services, which enable you to locate qualified candidates more quickly. They also facilitate onboarding and offboarding procedures, allowing transitions to be smoother for all concerned.
• 4. Focus on Core Business: With the administrative hassles removed, you and your staff can concentrate on what you do best—developing your business and taking care of your customers.

Choosing the Right PEO in Connecticut
Not all PEOs are the same. It’s essential to find one that meets your business needs. Connecticut has a number of PEO choices, each providing various services and fee structures.
Key Considerations:

• Services Offered: Verify the PEO offers the precise services your company needs, including payroll, benefit administration, compliance support, and hiring.​​
• Industry Experience: Find a PEO that has experience working with your industry so they are aware of the distinctive challenges and compliance issues you experience.​
• Reputation: Research client feedback and ratings to determine the level of reliability and quality of customer service the PEO has.
• Cost Structure: Understand how the PEO charges for their services—whether it’s a flat fee per employee or a percentage of payroll—and ensure it fits within your budget.

Why OEM America > National Providers (Looking at You, ADP)
National PEOs like ADP or Paychex treat Connecticut as an afterthought. Here’s how OEM—a local CT expert—stacks up:

Final Thoughts
Relocating your business is a monumental decision with far-reaching implications. While Connecticut presents certain challenges, solutions like partnering with a Professional Employer Organization can alleviate many of the burdens that prompt businesses to consider leaving.

Before you take drastic action, get to know how a PEO can revamp your business processes, save you money, and boost employee happiness. Remaining in Connecticut may be more feasible—and profitable—than you realize.

Keep in mind that each business is one-of-a-kind. Evaluate your unique needs, talk to PEO experts, and make the decision that’s best for your business and your future. Call us today to find out how we can help your success happen right here in Connecticut.