Turnover is one of the biggest costs that a business can face, it is also one of the most preventable. Unfortunately, there are businesses that aren’t doing all they can to retain the top talent that comes to their business. Turnover leads companies to have to repeatedly train new employees, leading to a costly cycle when turnover is especially high. Many companies are seeing the benefits that a PEO service company can offer. In this post, we will discuss the timeline of a typical employee and how benefits management software can eliminate turnover at every single step of the way.
Hiring new employees can be a stressful time for all parties involved. The employer wants to do their best to hire the top talent in their field. After going through a series of applications and interviews, the business owner finally has the employee that they want. However, the time and cost associated with finding a new employee likely means that a business owner has delegated much of their own time to this search. The potential new hire is likely nervous starting out at a new company. HR software can help an employee to feel more at home during on-boarding.
Statistics show that 57% of companies consider retaining employees to be a problem, with 22% of new employees leaving a company within 45 days, it is an understandable concern. The reasons behind the previously mentioned statistics for employees leaving a company can include unsatisfactory performance and issues with an employee’s temper. However, PEO service providers can implement training programs designed to help eliminate performance issues that new employees usually have.
Once you have an employee that doesn’t leave the company within a short period of time, you will likely want to retain that talent for as long as possible. Benefits are an increasingly important part of why an employee will stay at a company. A study was done concerning which benefits are must-haves for employees and health insurance ranked as the number one concern. Businesses that have a PEO system in place see a lower turnover rate, when compared to companies that have no PEO system in place. Specifically, PEO clients will see a 10-14% lower turnover rate than companies without PEO service.
Business owners don’t want to have to continually train a new batch of employees. Instead, consider what an effective PEO service could do to help retain the employees you’ve worked so hard to obtain. In addition to alluring benefit packages, a PEO service can be the face of your HR department. Benefits management software that caneffectively handle all benefit concerns, from the simple to more complex, is a valued addition to any roster of a business.
An employee might work for a company for decades before it is time to retire. The third most common concern for any employee was the retirement plan offered by a business. When looking at reasons for an employee to stay with a company, 45% of those surveyed stated that benefits associated with retirement were an “important” reason to stick around while 29% of those surveyed thought of these benefits as a crucial reason to apply for their current employers.
Employees are very concerned with not just receiving health insurance, they want to know that they can retire with the right company. You don’t want to lose star employees because your company didn’t offer them a good enough retirement package. Working with benefits management software ensures your employees are taken care of after retirement. After all, you want to honor the years of service an employee has provided for your company after they retire.
In closing, PEO companies works with handling many aspects of a business. Effective benefits management software always lets an employee know vital benefit information. In addition, PEO payroll software enables employees to know about their payment information. Statistics show that 46% of newly hired employees fail their jobs and end up having to be let go within just 18 months of obtaining employment. Shockingly, out of the information in the previously mentioned statistics, 11% were let go because they had a lack of skills while 89% of these workers were let go due to lack of motivation.