Employee retention is a significant area of focus for most business owners. According to talent management and HR site ERE Media, “78 percent of business leaders rank employee retention as important or urgent,” showing that the average owner wants to avoid losing good talent.
There are many reasons why an unexpected departure can prove problematic for employers. It can disrupt workflow. It can have a negative impact on chemistry. Also, it can cost up to 50 percent of an entry-level employee’s annual salary to find someone to replace your outgoing employee. That’s a pricey goodbye.
Retention is a big issue that many employers want to address before their company turns into a revolving door for talent. Fortunately, Professional Employer Organizations can help your business improve employee retention. Here’s how.
Attract the Right Employees
Excited about a new employee you just hired? There’s a chance that he or she might not stick around for too long. The Society for Human Resource Management cited a study in which one-third of new employees left their jobs within six months.
An important part of retaining employees is to find the right people from the start. Rushing through the hiring process or settling on a candidate can lead to personnel who just don’t fit your company. A PEO has a dedicated group of experienced recruiters on staff that can manage every step of the hiring process to ensure that you put your business in the best position to hire the right candidate. This includes the initial phone interview, background screening, and other services, while the employer still retains control of final hiring decisions.
Utilize Employee Training and Onboarding Programs
Once you hire someone, you should put them in the best position to succeed. That includes proper onboarding and training. According to SHRM, “66 percent of companies with onboarding programs claimed a higher rate of successful assimilation of new hires into company culture, 62 percent had higher time-to-productivity ratios, and 54 percent reported higher employee engagement.”
That initial amount of time spent to integrate your new worker into the company can help them understand their roles and feel at home. A PEO can help your business set up proper training programs to ensure the employee is set up for success in their current career path.
Make the Business More Desirable to New and Current Employees
A well-trained employee is a great start. Now you have to make sure that they don’t get entranced by what they see as greener pastures. A SHRM survey shows that 60 percent of employees view their benefits package as a major contributor to their overall job satisfaction.
Without the right package in place, your business may be at risk of losing top talent. A PEO can help you institute 401k and benefits plans that can add even more value to your employees’ current positions, as well as add extra incentive for potential job candidates.
Focus on Growth with a PEO
Investing on employee retention strategies is an important way to keep your team strong and retain new talent. However, proper hiring, training, and benefits packages are all time-consuming endeavors, especially for people with little-to-no training in those fields. With a PEO, that isn’t a problem.
A PEO can manage important services like employee training and recruiting and benefits administration, allowing you to focus your time on growing the business. This growth makes the employer even more desirable to current employees and potential candidates. Contact GMS today to talk to one of our experts about what we can do help your business with employee retention.