Whether you’re a business owner, HR manager, or team leader, you know how important excellent employees are to your company. A strong team is an essential part of any successful organization, so when you find a great fit, you’ll likely want them to stay long-term.
Let’s dive into the importance of employee retention and how working with a PEO (professional employer organization) can help enhance your company’s employee retention strategy.
Importance of Retaining Employees
Employee retention is important for several reasons. First and foremost, having a team of talented individuals who know what they’re doing and how to work together effectively is crucial to keep things running smoothly. Beyond that, high retention rates also play a major role in the culture of the company, improving performance, reducing expenses, and increasing revenue.
Building a positive company culture doesn’t happen overnight—it’s developed over time. Companies that are authentic, rooted in their values, and treat their employees with the respect they deserve typically have high employee retention rates. Having a strong company culture has been shown to increase productivity and improve overall performance in the workplace.
In terms of finances, a high retention rate not only reduces company expenses, but it also helps increase revenue. Ultimately, it costs money to hire new employees, so keeping the talent you already have and reducing turnover is important. Additionally, happy employees are more likely to perform better and more efficiently at work, boosting revenue within the company.
Challenges in Employee Retention
One of the major areas that can be a challenge for employee retention is the initial onboarding process. When you hire a new employee, onboarding is an opportunity to introduce them to your company and the culture and to get them feeling engaged. Studies show that roughly 20% of staff turnover happens within the first 45 days.
A competitive benefits package is also incredibly important when it comes to employee retention. The quality and amount of coverage your employees receive can either make or break their level of satisfaction at your company. Offering great health insurance and workers’ compensation plans is essential.
How PEO Services Improve Retention Rates
Business owners and team leaders typically have their hands full at work. Adding on administrative tasks like payroll, workers’ comp claims, and other HR services only detracts from what needs the most attention inside your organization.
Working with a PEO is a great way to help improve employee retention rates. When you partner with a PEO, you can rest assured that HR experts are getting the administrative work done so that you can focus your energy on your team and growing your business.
Enhanced Employee Benefits Programs
PEOs offer tons of flexibility when it comes to employee benefits programs. Pay-as-you-go plans make it easy for workers to get the exact coverage they need, when they need it—whether they’re full-time or work on a project-by-project basis. Additionally, because PEOs work with a multitude of clients, they can offer more affordable rates than standard packages.
Improved HR Practices and Employee Engagement
PEOs help alleviate the burden placed on human resources to help streamline the process of payroll, benefits management, and workers’ compensation claims. When you work with a PEO, your employees will likely have access to an online platform where they can navigate their personal portal.
Partnering with a PEO also means you can administer surveys to your employees to gauge overall satisfaction in working with your company, ultimately helping to boost employee engagement.
Boost Your Retention with PEO Services
Employee retention helps create a strong company culture, improve performance, reduce expenses, and increase revenue. While retaining excellent employees is incredibly important for the success of your company, it can also be challenging.
When you work with a PEO, they can offer more flexible and robust benefits packages as well as a more streamlined experience overall. Partnering with a PEO is a great way to boost your retention rates and ultimately improve the entire employee experience.
If you’re ready to enhance your employee retention strategy, reach out to our team of professionals at PEOPayGo to see how we can help.
