Overcoming the Great Resignation of 2021 – during which 47 million Americans voluntarily quit their jobs – hasn’t been easy. Businesses worldwide have been left with gaping holes in professional skillsets and worrisome business-critical vacancies to fill. The landslide was brewing even before the global pandemic, and then Covid-19 set it into unstoppable motion.
What’s the Solution?
A professional employer organization (PEO) can help employers address the pressing issue of employee turnover and hiring desired talent, even in the toughest of job marketplaces. As reported in a white paper by the National Association of Professional Employer Organizations (NAPEO), companies working with PEOs saw an average reduction in turnover of nearly 15 percent compared to other businesses of similar sizes.
The benefits of a PEO partnership include:
- Improved payroll processes: PEOs provide subject matter experts in a full range of talent management specialty areas, including payroll. This includes knowledge and understanding of applicable laws and regulations. And, because your PEO becomes the employer of record for your workforce, it assumes related taxes and liabilities. You retain operational and, of course, strategic and overall business control, but you’re relieved of ongoing payroll stresses and the costly penalties that can result from errors or tax violations.
- Better benefits: In addition to being paid accurately and on time, access to a competitive benefits package is a key factor in determining an employee’s level of job satisfaction. PEOs pool all their client employees together and leverage this group purchasing power to gain access to healthcare, retirement, and myriad other benefits that would otherwise not be feasible or affordable for you. This also represents a major boost to your employer brand as you recruit candidates.
- Speaking of recruitment … Your PEO can work with you to develop and implement the best possible sourcing and recruiting strategies. This includes not only finding the most qualified applicants, but also conducting background checks, scheduling and assisting with interviews, and other steps as needed. Hiring decisions are still up to you, but you’re relieved of much of the time-consuming legwork.
- Improved training programs: Whether it’s on-site or through a web portal, PEO training specialists can help in this regard as well – not only designing programs, but also scheduling employees, conducting the actual sessions and any related testing, and handling all the paperwork and follow-up.
Want to See if a PEO is Right for Your Organization?
Is working with a PEO the right approach for you? If you’re not sure, Key HR can provide more information on this and other HR partnership options for growing businesses. We are aligned with a full spectrum of preferred provider companies to offer new, innovative ways to meet our clients’ payroll, employee leasing, benefits, and insurance needs. Our relationship with them helps business owners reduce costs, save time, optimize their workforces, build revenue and reduce risk. Reach out to us today to learn more.
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- On September 14, 2022
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