Added Value of a PEO: Ensuring Better Recruitment and Retention
As the workforce evolves, small and mid-sized businesses are increasingly partnering with Professional Employer Organizations (PEOs) to assist with sourcing and retaining talent. Linda Van of ADP TotalSource breaks down how a PEO can help organizations remain attractive, grow their business and position themselves as an employer of choice.
Building retention strategies and executing recruitment initiatives can get sidelined by the day-to-day HR responsibilities of processing payroll, managing benefits, and training employees. It’s a big reason why small and mid-sized businesses are increasingly partnering with Professional Employer Organizations (PEOs). PEOs provide companies a comprehensive range of services to support administrative payroll, HR, and benefits responsibilities. PEOs can also help businesses with highly-critical projects such as preparing for growth and identifying retention risk areas within an organization. The following are some of the ways a PEO can bring value to a company.
Added Benefits for Recruitment and Retention
Winning talent is critical to a business’ success, and the current tight labor market has businesses clamoring for skilled employees. A PEO provides the ability to tap into a vast network of job seekers to help source the best candidates for a particular business. For small businesses, this can be an invaluable offering.
Additionally, the right employee benefits package can help to attract and retain talent, as well as lead to greater productivity and higher quality work among employees. In a market such as Hawaii, dominated by small to mid-sized companies, a PEO service can give employers an edge in attracting and keeping talented employees because PEOs can access benefits not otherwise available or affordable for small businesses. PEOs don’t only provide scale, they also provide employers the ability to offer multiple benefits options to provide for the varied needs of their employee population.
For example, ADP TotalSource’s recent expansion to Hawaii includes strategic partnerships with local, on-island benefit carriers, as well as national carriers for out-of-state employees. Beyond the expected options (medical, dental, vision, life, disability, and voluntary), ADP TotalSource’s benefits include offerings employees wouldn’t expect, such as retail discounts, a dedicated team to coordinate health care (Health Advocate), an Employee Assistance Program (counseling, senior caregiving services, legal and financial consultations, etc.), and a 401k program to save for retirement.
Learn More: 9 Best Strategies to Retain Your Employees
Ongoing Professional Development
Another way PEOs help employers attract and retain employees is by investing in professional development. Some PEOs, like ADP TotalSource, have built-in training and development courses employees can take online. ADP TotalSource even hosts learning and development courses in person, which can go a long way to help employees feel valued.
PEOs can also guide employers as they create a program to track employee performance and promotion readiness. By allowing employers to have visibility to an employee’s challenge, employers can work to help improve performance and guide their employees to success. With a PEO’s technology, business owners can discover easy alternatives to track employee growth and development, as well as productivity through scheduling, timekeeping, and attendance.
Support Compliance
Compliance can be a daunting business challenge, as it is ever-changing and if not executed correctly, could have major implications for a business. From requiring expertise in tax reporting adherence, unemployment and workers’ compensation insurance, Affordable Care Act, COBRA (Consolidated Omnibus Budget Reconciliation Act), and employment laws, such as Americans with Disabilities Act, Fair Labor Standard Act, and Equal Employment Opportunity Commission (EEOC) regulations, keeping up with all compliance obligations can be a struggle for small- and mid-sized businesses. However, it doesn’t have to be. This day-to-day work can be facilitated through a PEO to free up the business’ HR to focus on other necessary tasks, such as recruitment and retention. Through handbooks, training, and proactive strategies, a PEO can help companies protect themselves from fines, claims, and penalties whenever an employment issue arises. Most importantly, partnering with a PEO for compliance gives employers peace of mind and lets them focus on their recruitment and retention strategies — which ultimately contributes to better and more sustainable growth.
Learn More: How Healthy Turnover Can Lead to Long-term Talent Retention
Drive Workforce Success
As the needs of the workforce evolve, so must the approach to address the shifting world of work. Amid changing business regulations, increased compliance challenges, and a tight labor market, a PEO can deliver the services needed to help businesses remain attractive. The key to a company’s success starts with having the right talent in place. By enlisting a PEO, small and mid-sized companies can compete for the talent they need to grow their business and position themselves as an employer of choice.
