Contending with employee turnover remains one of the leading HR drivers for every business, regardless of size, industry, or profitability. While it’s certainly important to attract top talent to actively help grow your business, it is equally important that you do everything in your power to retain that talent. Not only do you not want those good ideas and productivity walking out the door to one of your competitors, but you’ll also lose time and money during the recruitment and training process for their replacement.
This is where hiring a Professional Employer Organization (PEO) comes into play. Leading industry research reveals that companies who partner with a PEO can reduce employee turnover by up to 32%. And while that number is quite impressive on its own, the bigger selling point for outsourcing your HR, benefits, and payroll to a PEO is exactly how that reduction is accomplished.
This is probably the most important factor as recent research shows that employee loyalty is directly impacted by the sort of benefits they receive from their employers when considering whether or not they will stay or start looking for a new job.
But guess what? Not every company has the buying power in the marketplace to deliver competitive benefits, especially when it comes to top-tier items like health insurance rates and retirement plans. This often means cutting corners on the benefits a company provides and completely cutting out some benefits all together. This places undue stress on employees, especially since people appreciate comprehensive benefits they can customize to meet their needs and career development.
When you partner with a PEO, they negotiate more effectively on your behalf to secure bigger packages, lower prices, and far-ranging perks. This happens because they’re working with a larger pool of employees and doing so with industry insights and experience you might not have. A good PEO puts their expertise to work for you and your employees so you can focus on your company’s products, services, and customers.
While not every one of your employees needs to feel like their coworkers are a second family, everyone does enjoy a happy, pleasant, and productive workplace. And there are few things that drag down company morale than high rates of employee turnover. A revolving door of coworkers can create a toxic culture where people either fear they’ll be fired next or that company leadership lacks vision and purpose regarding the work being done.
A top-notch PEO can step in to help with these issues by providing training tools for leadership around goal-setting. It can also deliver insights and guidance about improving employee engagement. You want your employees to believe that everyone is equally invested in doing impactful work. A cohesive work culture does wonders for enhancing both tangible production and the intangible mood regarding the production.
For some employees, this means delivering opportunities for advancement and career growth. For other employees, it means helping them do better work and enjoy doing that work. What matters is that you help each of them find a purpose for their work, so they remain invested in your company, instead of looking for a different job at a competing company.
For employees to be truly productive members of your team, they must feel their productivity is valued and appreciated beyond the raw numbers of their output. With an experienced PEO on your side, you can more effectively recognize the individual strengths and weaknesses of each employee and then tailor a course of action that meets those needs. Your PEO can offer training classes, accountability activities, and more – all so you can maximize the abilities of your workforce.
Lowering employee turnover is essential for every business that wants to grow and succeed, and a PEO can help with that. Ultimately, your bottom line will improve from reduced expenses associated with the constant churn of recruitment, hiring, and departures.