Last year, the National Association of Professional Employer Organizations (NAPEO) released its 2024 white paper, which found that the top three benefits of utilizing a PEO are faster growth, more resilient businesses, and lower employee turnover rates. To help your business achieve these benefits, consider SWBC PEO as a reliable partner in managing your workforce effectively!
Your employees are the foundation of your business. When they feel taken care of, they take care of their workplace. When they don’t feel taken care of, they begin their search for a workplace that does care.
Professional employer organizations (PEOs) help businesses take care of their employees, creating a better work environment and ultimately boosting business retention rates. In this blog, we will be discussing the ways in which a PEO could lower your employee turnover rates, enhancing your business’s opportunity for success.
Understanding What Leads to Employee Turnover
Employees are at work for a significant portion of their days, whether they are part-time or full-time. This means that they need a healthy work environment where they feel supported. High employee turnover rates often occur when there is a lack of career development opportunities, poor compensation and benefits, a toxic company culture, a lack of support, and an insufficient opportunity for work-life balance.
The Consequences of High Employee Turnover
If your business turns into a revolving door of employees, it might endure consequences such as:
- Higher recruitment and training costs.
- Loss of knowledge and experience.
- Decreases in productivity levels.
- Hits to employee morale.
- Cuts to the profitability of your business.
Your employees play a significant role in your company's success. Ensuring they feel cared for and supported is crucial to keeping good employees loyal to your business.
How a PEO Can Lower Employee Turnover Rates
Statistics support that PEOs can significantly reduce employee turnover rates, a detrimental challenge faced by businesses of all sizes. According to the NAPEO 2024 White Paper, the reported annual employee turnover rates of businesses that use a PEO were 12 percent lower than those that did not.
Have HR Tasks Handled By Experts
Your HR tasks are a significant part of retaining quality employees. PEOs offer a range of comprehensive services, from payroll and benefits administration to compliance management and risk mitigation. Outsourcing your HR tasks can help reduce your HR team’s workload, ultimately granting them a chance to provide improved service to your employees while resting easy, knowing that experts are handling the outsourced tasks.
This partnership can boost the employee experience, reducing the administrative bottleneck that can occur when your HR team is overwhelmed with requests related to topics like pay and benefits.
Boost Your Benefits
One of the greatest benefits of working with a PEO is the access they grant to better employee benefits. PEOs leverage a large client base, allowing them to negotiate better rates for your employees’ health insurance, retirement plans, and other perks.
Smaller and mid-sized businesses may not be able to provide competitive benefits, but partnering with a PEO can allow them to give their employees the quality benefits they deserve.
Quality benefits are a key part of ensuring your employees feel supported, which can increase the likelihood of them wishing to keep their talents with your business.
Improving Employee Development Opportunities
Many employees have dreams of growing their careers, making opportunities for development key to retention. When employees feel that their careers are growing and they are receiving the training and resources they need to succeed, they are more likely to remain with your business.
A PEO can grant your business access to growth opportunities for your employees, such as training programs, mentorships, and performance management systems.
Giving Your Employees a Voice
PEOs can help businesses implement employee engagement initiatives that allow your employees to have a voice in your company. By supporting regular feedback, employee recognition programs, and engagement surveys, PEOs enable businesses to actively listen to their employees’ needs and take action to boost their job satisfaction.
Partner with a PEO You Can Trust
At SWBC PEO, we believe that our success is dependent on our clients' success. We work hard to inspire, support, and care for your employees while powering your bottom line. If you’re ready to boost your employee retention rates, contact us today!
