Human resources managers know that employee retention is critical for businesses who want to grow within the current market. And yet, according to a survey by Deloitte, 29% of the workforce switches jobs on an annual basis. This sobering study also documented a 2.4% increase in voluntary employee turnover, or churn, which represents a record high in the U.S. The statistics remain consistent across industries, proving just how hard it can be to retain good talent.
It gets worse. For many employers, this voluntary turnover brings hidden costs. Attracting and hiring top talent requires an initial investment of time and resources. Training new employees also takes time. Additionally, there’s a learning period before the new hire is ready to work at full productivity. In fact, studies say that adapting to a new organization can take up to 8 months of onboarding – or more.
So, when a skilled employee leaves, it can be quite challenging to find a comparable replacement. Every day without that team member impacts productivity and taxes the time of your remaining staff. And, the rehiring and training process requires more time and money. In fact, Gallup estimated the cost of replacing a single employee ranges from half to twice their annual salary.
Clearly, keeping current employees happy and satisfied has a significant impact on your bottom line. As a result, many forward-thinking leaders at top corporations are prioritizing employee retention in 2021. This has left human resources managers scrambling to address top factors that impact retention.
Examining the Causes of Employee Turnover
According to Gallup, employees who feel highly engaged are 87% less likely to leave an employer. Companies with great employee onboarding and training practices see 53% lower turnover rates. And, delivering quality employee benefits can also reduce employee churn.
HR managers certainly have their work cut out for them. For companies without a dedicated human resources team, it can be even more challenging to address employee retention in a significant way.
That’s where a professional employer organization (PEO) can help. PEOs like Integrity Employee Leasing are designed to help small to mid-sized businesses thrive. One of the leading PEOs in the country, Integrity has both the practical knowledge and long-term experience to attract a talented team, improve satisfaction, enhance employee benefits and more.
Improve Employee Retention with Integrity Employee Leasing
Especially when it comes to improving employee benefits, a PEO of Integrity Employee Leasing’s size is a huge advantage. Integrity can negotiate and secure impressive cost-savings on employee benefit plans for its clients that a small or midsize businesses cannot.
For example, Integrity Employee Leasing offers a multi-client 401(k) program that allows employers to provide a retirement plan for their employees. It is administered by Integrity’s HR management team, along with year-end testing and the mandatory federal reports that keep the asset contributions ERISA-compliant. Integrity’s clients can participate in the sponsored 401(k) plan at a greatly reduced price as compared to a standalone plan.
Integrity Employee Leasing also offers employee benefit administration support at no additional cost. For those interested in obtaining your own group major medical policy for employees, Integrity can provide a complimentary quote and facilitate the plan. However, minimum participation requirements and mandatory employer financial contributions apply.
State unemployment insurance (SUI) is another necessary HR process that a PEO can handle. Integrity’s trained HR specialists regularly manage unemployment claims through response of claims and appeal processing. Additionally, the team can provide statement monitoring, in-depth benefit charges and annual claim activity reports.
Additionally, Integrity Employee Leasing saves its clients time by completing tedious and time-consuming HR paperwork on their behalf. This includes new hire reporting, Bureau of Labor statistics and EEO-1 reporting to the state and federal authorities. Integrity also handles the additional paperwork required for child support and garnishment, as well as Tax Levy Administration.
Finally, for a minimal cost, Integrity Employee Leasing can efficiently and professionally verify employees through E-Verify. This web-based program confirms employment eligibility of hiring candidates. It works by effectively cross-verifying information through the Social Security Administration and the Department of Homeland Security.
In Conclusion: Consider a PEO to Improve Employee Retention
Could you benefit from partnering with one of the leading professional employer organizations in the United States? The numbers don’t lie. Integrity Employee Leasing has an impressively high retention rate of 95% on behalf of its clients.
You can learn more about Integrity Employee Leasing’s human resources services.