You Don't Need Outsourced HR or Do You? 4 Things You Need to Know
Are you struggling with some of the biggest HR challenges: engaging your workforce, retaining talent, reducing turnover, and improving employee health and well-being?
You're not alone. Research shows that nearly 75% of HR professionals report the job being harder than ever, with close to 100% of respondents saying the current environment is mild to "highly competitive," and around 33% replied that it "will not get easier for at least a year."
So, what are your small business growth solutions?
You can brave the storm alone or partner with a trusted Professional Employer Organization (PEO). The benefits of a PEO and the ROI of using a PEO are unmatched. PEOs help solve HR problems and maintain peace of mind so business owners can focus on growth. Here's everything you need to know, from how you can get help with basic human resources tasks and what are the first steps in creating a strategy for improving employee retention.
1. PEOs Relieve HR Burdens
The primary tasks of human resources can keep your HR team from more important matters like keeping your employees engaged, productive, happy, and healthy. Partnering with a PEO will assist your HR team (we don't replace them!) or handle it all if your company doesn't have one. Either way, PEOs manage the paperwork that bogs you down, like time-consuming payroll, benefits, HR administration, workers' comp claims, etc.
This way, your HR department can focus on strategy instead of transactional tasks, ensuring your employees are taken care of while tedious paperwork is covered by someone else.
2. PEOs Boost ROI
If you're on the fence about outsourcing your HR or keeping it all in-house, your ROI is an excellent factor to consider. Your ROI or return on investment is a good way to measure how much you're getting out versus how much you're putting into an investment. The higher, the better.
According to SWBC, the ROI of a PEO is 27.2%! This is because you boost your revenue in several ways when you partner with a professional employer organization:
- Employee Retention — simply put, happy employees stay with companies longer. A PEO frees up your HR team's time to focus more on your employees and helps boost areas that are most important to them (health benefits, appreciation, well-being, positive company culture, etc.).
- Cost Savings — noted in the report, researchers valued company cost savings per employee with a PEO to be 54% for internal HR salaries/benefits, 37% for health benefits, 5% for external HR expenditures, 4% for workers' compensation, and more. For more perspective, it was estimated that $1,775 per employee per year is saved yearly.
- Improve Productivity — PEOs help you design more effective processes and job descriptions, increase employee morale, and keep your staff happy and healthy. When these needs are met, your employees are more inclined and better able to stay on target and meet or exceed deadlines.
PEOs Provide Better Employee Benefits
Another benefit PEOs bring to the table is better employee benefits. This benefits your employees by providing more access to health resources and prioritizing their well-being. This means fewer sick days, absences, burnout, distractions, and turnover for the company.
Research shows that at least 49% of employees will leave their job in the next year if their company's employee benefits are lacking, and 51% say employee benefits play a significant role in talent retention.
When you partner with a PEO, you can benefit from:
- Access to high-quality benefits at competitive prices.
- Benefits packages that are typically unaffordable for small businesses but affordable with a PEO, which means:
- Companies that don't currently provide benefits now can with a PEO.
- Or if they do, they can improve them and get them for a lower price.
4. Your Business Will Grow with a PEO
When you outsource your HR, you can return to focusing on growth, creating more revenue, customer service, employees, etc. According to NAPEO, small businesses that partner with PEOs:
- Grow between 7% to 9% faster
- Have 10% to 14% less turnover
- Are 50% less likely to go out of business
This is because PEOs not only free up your time by taking over tedious/repetitive tasks but bring in new perspectives that fuel a better company culture, happier employees, healthier lifestyles, and more efficient ways of working.
Don't partner with just any PEO. Partner with PRO Resources, who has decades of experience with co-employment relationships with small businesses (10-200 employees) and mid-sized businesses (200-500 employees) allowing them to succeed and grow in their industries. You need extra insight, expertise, and hands-on help in HR— PRO Resources has a team of experts qualified for the job.
To outsource your Human Resources, contact us and learn more ways we make the life of a business owner easier and add value to your HR department.