CoAdvantage- Here’s a key important question for any organization considering outsourcing some or all of their HR functions to a third-party partner: does the act of outsourcing help or hurt the employer’s relationship with current and future employees?
We have some pretty good evidence that employees like it. The National Association of PEOs conducted an in-depth analysis of companies that use PEOs versus comparable businesses that don’t, and they found employee turnover was 10 to 14 percentage points lower for companies that work with PEOs. Why is that?
1: It makes their lives easier
Especially when the outsourcing comes bundled with technology upgrades and self-service portals that let them handle questions and issues quickly themselves. A PEO often brings technology and expertise that is otherwise difficult to find or implement. Employees are often pleasantly surprised by the amount of self-service they can do through self-service platforms and the automation of routine tasks provided by HR providers.
2: They get better service
When they have issues or HR questions, they get resolved promptly, professionally, and effectively. A good HRO provider can offer immediate answers even to highly idiosyncratic and complex questions. This includes handling complaints and performing other tasks that can help improve employee satisfaction. In fact, many employees may be surprised at how high-touch HR outsourcing services can be.
3: It frees up their time
Simply stated, when HR is executed at a world-class level, employees just don’t have to think about or deal with HR issues as often, or at all. They can get answers and solve problems faster, and often just avoid the questions and problems in the first place.
4: It makes everything just work
The previous point is particularly important and means that employees often don’t react at all, at least not at first. That’s because many employees won’t even notice that HR is being outsourced because all of their HR-related experience just works. Outsourcing with a vetted, an expert partner will often just be a seamless, invisible process that just takes care of everything so naturally that employees just … don’t even think about it.
And let’s face it, employees shouldn’t spend time thinking about the aspects of their employment that HR handles. Reduce HR-related problems, you reduce the amount employees have to think about HR at all; and when they do, it’s often to breathe a sigh of relief because the provider makes dealing with their HR questions and issues so easy that it’s often a load off their minds.
CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about our ability to create a strategic HR function in your business that drives business growth potential, contact us today.