Losing an employee can be a difficult process for a small business. Given the more intimate size of your company, a single employee leaving can mean having to adjust significantly different office dynamics.
However, what you end up paying out of pocket for a lost employee can be surprisingly high. Depending on the nature of your business and the employee who left, the cost of employee turnover can range from 30% of the employee’s annual salary to 400%. This cost comes from the struggle to hire a replacement, lost productivity in the interim, and any other struggles that could arise from an employee’s departure.
Fortunately, having a PEO by your side is one way to fight back against employee turnover. According to a white paper produced by NAPEO, companies who signed a co-employment agreement with a PEO saw an average reduction in employee turnover of nearly 15% compared to companies of similar sizes. This improvement in retention rate can be attributed to the benefits your business can get from partnering with the right PEO.
Less Stress on Management and More Money in Your Pocket
Your morale is important to employee turnover as well. If you’re struggling to process payroll or make sure that you’re not in violation of any major federal laws, you’re not focusing on other important aspects of the business. Handing off the payroll and other HR services to a PEO is a great way to share some of the responsibility of running your business without losing control of your company.
Likewise, hiring a PEO is a great way to save money on payroll expenses. You could hire a full-time, in-house HR team to replicate the benefits you get from partnering with a PEO. However, signing up with a PEO will cost a fraction of the price of hiring a dedicated HR professional and may have access to services and benefits that simply aren’t feasible for a small business.
Offer Your Employees a More Attractive Benefits Package
Having a small business means that you don’t always have access to the best benefits packages. Yet, access to a good benefits package is an important factor in determining an employee’s job satisfaction.
Partnering with a PEO is one way to gain a competitive edge over similarly-sized businesses when it comes to offering a better benefits package. When you sign a co-employment agreement, your employees will have access to the same benefits package that is available to employees of the PEO. By pooling together employees, your employees will get higher quality plans with less severe out-of-pocket expenses.
PEOs Improve Your Ability to Recruit Employees
Retaining employees starts with finding the right employees. An employee who is not a good fit for your company will likely end up leaving sooner rather than later.
As part of your co-employment agreement, a PEO can help you recruit new employees. Your PEO partners can devise a strategy to find the most qualified applicants for your open position. This includes conducting background checks, conducting the first interview on your behalf, and scheduling additional interviews with you. As with all major decisions facing your business, your PEO partners will leave the hiring decision up to you.
Employee Training Opportunities
Would your employees benefit from having access to training materials or certifications? When you partner with a PEO, you can build the training program that you need to build your employees’ skills or give your employees the opportunity to advance their career by gaining new certifications. This may come through building a web portal for courses or help scheduling times to take any requisite tests.
NetPEO Wants to Improve Your Employee Turnover Rate
When it comes to finding a PEO, there are a plethora of choices available. However, finding the one that offers the services your business needs at a price that is within your budget can be time-consuming and stressful. NetPEO is here to streamline the process so you can remain focused on running your business.
When you call one of our PEO brokers at (678) 376-1212, we build a profile of your business to find the right PEO from our national network of affiliates. Our highly-trained brokers narrow down a list of potential partners for you, based solely on what HR services you need and the budget you have available. We’ll help you negotiate a co-employment agreement and we’ll be there for you even if you have trouble down the road.
Better still, our PEO brokers will assist you without charging you a dime. So, if you’re serious about improving employee turnover, give NetPEO a call today!