There’s a talent crunch in America. Companies are having difficulty finding top talent and the average time to fill a position is only getting longer. As recruiting has become more and more competitive, turnover has also increased as employees pursue new opportunities, taking their experience and skills with them. Now more than ever, staff retention is key to your company’s success.
Starting out Right – Onboarding is Key
Staff retention starts with the first day of employment. It sounds a little strange, doesn’t it? Maybe, but it’s true. First impressions matter. Whatever your new employee thought when they were interviewing will fly out the window and be replaced with a new set of expectations, so it’s important to make sure that your new employees get started on the right foot.
Too often, a new employee will be given a tour of the office, then seated at a desk and given a stack of employee paperwork and a handbook. They might have a computer and a user name, they might not. Most likely, they will be ignored until lunch time, when they are (hopefully) taken to lunch by their new supervisor or manager. Beyond that, the first day is often spent in a fog doing administrative tasks, or just waiting for direction.
The reality is that, for most companies, HR is treated as an afterthought and is generally understaffed and over-tasked, which can lead to important things like onboarding being placed on a back burner. This is where outsourcing can be one of your most powerful HR tools. Imagine the kind of on-boarding you can set up when you aren’t looking at a desk full of overdue tasks. Picture having the ability and bandwidth to send new hire forms to the new associate before their start date, to work closely with IT to make sure that new equipment and permissions are in place and ready to go when the new hire comes in. Imagine having the time and space to create the kind of onboarding you would have liked to receive as a new employee.
How Delegating Administrative Tasks Increases Retention
Of course, you don’t need to have a lot of hires to get the benefit of outsourcing HR functions. Even if your company currently has a limited number of hires, outsourcing your Human Resources function can relieve a lot of the necessary tasks that are taking your principals and other top contributors away from building the company. When you outsource HR, you have someone else to perform regular tasks such as employee file maintenance, performance reviews, and benefits enrollment. You also have someone who can focus on complying with rapidly changing state and federal laws, leaving your regular staff time to focus on building the company and improving employee morale.
Rapid HR Response
Studies have shown that one of the most common reasons employees look for new jobs is the feeling that they aren’t valued by their employers. Things like inadequate benefits, poor communication, and the perception that getting promoted is unlikely will lead to a toxic work environment that is ripe for turnover.
When you outsource your Human Resources function, you not only free up your permanent employees and management staff to respond to concerns quickly, but your employees also gain access to accomplished HR professionals for everyday concerns. When your employees are looking for employment verification or assistance with open enrollment, your dedicated partner can respond quickly and provide a level of HR support that will illustrate the regard your business has for its people.
There are times when you need more HR power and other times when you don’t. Open enrollment comes immediately to mind for most Human Resources professionals, as does tax season. Even if your benefits and payroll are not handled in-house, you will still have an influx of calls, emails, and, inevitably, complaints.
One of the greatest advantages to outsourcing HR is that your human resources partner can add staff when and where it’s needed and remove it when it’s not, without the hassle that comes with recruiting and separation. They can also provide backup for new employee initiatives. For instance, let’s say that your company is changing the commission structure for your sales staff. Your human resources partner can help you develop a new plan, create training materials, and answer questions. In other words, your HR partner can make your employees feel truly supported. What a great tool for retention!
When it comes to outsourcing Human Resources, cost savings and employee retention go hand-in-hand. Beyond the cost savings that normally come with turnover (such as recruiting and training), there are other savings that an HR professional can help you find. For instance, your HR partner can use their contacts and expertise to help you negotiate for a health plan that offers more coverage at a lower cost. An external HR partner can also help streamline your review process as well as your internal recruitment process, which directly addresses two of the biggest sources of employee turnover. By making sure your company is compliant with federal, state, and local laws, an HR partner can save your company a small fortune in fines and fees. You can use the money saved with their expertise to provide more substantial bonuses and increases. While more money isn’t the end of the story when it comes to retention, it certainly doesn’t hurt.
For more information on how Commonwealth Payroll & HR can work with you on your strategic human resources planning, call us today at 877-245-1159.