According to Gallup, 48% of America's working population is actively searching for new jobs. With employee turnover breaking records, companies are struggling to boost retention rates. One of the advantages of HR outsourcing is holding on to top talent while the competition is trying to survive the so-called“Great Resignation.”
The main reasons for high turnover rates include lack of development opportunities, poor engagement, and absence of strong relationships at work. All the above can be countered with the right approach to HR outsourcing.
Let's take a closer look at how outsourcing HR can help reduce turnover and keep your company in top shape.
Blunting the Impact of the Great Resignation
While other companies are struggling with high turnover rates, outsourcing HR can create an oasis for your employees without making major investments. By working with an HR partner, you can:
Small HR teams are usually too busy to focus on all aspects of company culture. This contributes to employee dissatisfaction and high turnover rates. Overwhelmed HR staff can't:
Provide communication opportunities.
Implement employee engagement initiatives.
Cultivate strong relationships.
Solicit, analyze, and process employee feedback.
Instead, your team is much more likely to focus on compliance, payroll administration, benefits administration, and worker's comp claims.
By outsourcing the above tasks to a qualified HR partner, your HR specialists can gain the time to build and improve company culture. This in turn can reduce turnover.
Ask HR Experts
With HR laws, regulations, and requirements changing regularly, it can be hard to stay compliant. Meanwhile, answering questions related to benefits, workers' compensation, and retirement plans can take up a significant amount of your team's time.
When you work with an HR outsourcing partner, you gain access to HR experts who can maintain compliance and provide answers to complex questions, saving you hours of research. These experts are always available to help you solve tough HR issues and avoid costly mistakes.
HR experts can assist with:
Establishing workers' compensation plans.
Researching competitive benefits options.
Designing employee handbooks and policies.
Determining salaries based on local and federal laws.
Creating a diverse workplace.
Complying with employment laws.
HR teams constantly need expertise in a variety of areas. Hiring an expert for each niche is costly, time-consuming, and unnecessary. By outsourcing HR, you get an opportunity to seek expert advice for a fraction of the price of hiring new specialists.
Access Better Benefits
Employee benefits play a major role in retention. According to an SHRM survey, 56% of American adults with employer-sponsored benefits said that satisfaction with health coverage was the key factor that affected their decision to stay or leave their current job.
Unfortunately, small and mid-size businesses (SMBs) often struggle to provide high-quality benefits packages to their employee due to high premium costs.
By using a comprehensive HR outsourcing solution, you can gain access to Fortune 500 benefits at affordable prices. Comprehensive HR outsourcing partners make use of economies of scale to provide their clients with top-notch benefits.
Depending on your state, you can take advantage of:
Giving your employees access to excellent benefits can help you prevent high turnover rates and improve employee morale. Additionally, these benefits can make your company more attractive to top talent.
According to the U.S. Bureau of Labor Statistics, for every 100 full-time employees, 2.8 workers' comp claims are filed every year. Many of these claims can be avoided. However, overwhelmed HR teams don't have sufficient time to implement top-notch safety training, run related audits, and streamline safety protocols.
By outsourcing functions to an HR outsourcing partner, your team can gain the much-needed time to improve safety in the workplace. Additionally, the HR partner can:
Run Occupational Safety and Health Administration (OSHA) compliance audits.
Implement substance abuse and drug-free workplace programs.
Develop workplace safety programs.
Arrange world-class safety training.
Ensure compliance with workers' comp policies
Improving workplace safety can make your company more appealing to both existing and potential employees. This can reduce turnover rates.
HR Outsourcing as a Cost-Effective Solution
Working with an HR outsourcing partner can improve your company culture, boost employee engagement, reduce workplace safety risks, and provide your employees better benefits. All the above can increase employee satisfaction and decrease turnover rates.
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Tom DiSilva has been providing professional human resource services for over 30 years. As the CEO of Navigate PEO, he actively partners with organizations of all sizes in the Greater New England area and across the country to help their businesses grow. He has expertise in HR and Labor Management, offering guidance and support for key areas of business such as negotiations, operations management, employee coaching, and employee benefits design.