In a U.S. economy with record job openings and workplace experts predicting a post-pandemic turnover tsunami, partnering with a Professional Employer Organization (PEO) can help your company attract and retain top talent.
PEOs can help businesses, especially SMBs, in hiring and retention thanks to their ability to allow their employees access to benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies.
A relationship with a PEO is more important than ever given the latest labor market news which includes:
- The U.S. Labor Department reported in April there was a record 9.3 million total jobs open across the country, the highest level since the government started tracking the statistic in 2000.
- Three recent surveys show that maybe half of the U.S. workforce is planning on job hunting in 2021 and a quarter of workers are looking to switch companies once the COVID-19 pandemic eases.
Role of Benefits in Attracting, Retaining Great Talent
The Engagement and Retention Report from the Achievers Workforce Institute found that 52 percent of employees say they will job hunt in 2021, up from 35 percent a year ago.
The number one reason for wanting to change jobs, cited by 36 percent on the move, was “better compensation and corporate benefits”.
When it comes to better benefits, companies need to not only look at the basics such as their retirement and health care packages, but they should also focus on comprehensive benefits that address emotional and physical wellness, work-life balance, financial stress, community outreach, education, and skills training.
Work-life balance can be crucial going forward with 25 percent in the Achievers Workforce report saying that is why they are looking for a new company, and 23 percent citing work-life balance as the main reason they would stay at a company.
“This shows that organizations must focus on balance to attract and retain employees. Knowing whether your employees are satisfied with their current balance should be your first stop,” wrote the Achievers Workforce report author Natalie Baumgartner, PhD, Chief Workforce Scientist.
PEO Advantage in Offering Comprehensive Benefits
PEOs not only allow companies to offer competitive benefits but they can help with employee retention by giving employees an appreciation and understanding of the benefits available to them.
SMBs, by partnering with a PEO, can offer a wide variety of benefits to employees through PEO-sponsored plans such as:
- Retirement savings programs such as 401(K).
- Medical, dental, and vision coverage
- Life and disability benefits
- Healthcare flexible spending accounts
PEOs also allow companies access to training programs and other HR tools that can help their employees with education and new skills needs.
PEOs Can Help Keep Employees Engaged, Connected
One of the advantages of working with a PEO is the ability to help your company identify gaps and opportunities in HR and benefits which can help keep your employees connected to your business.
Since the pandemic, staying connected and engaged is a concern with employers with 46 percent of employees telling Achievers Workforce that they “feel less connected to their company now than they did before the pandemic”.
Another way to keep employees engaged is via recognition with employees receiving recent recognition from their company reporting a lower level of job seeking.
Overall, the report found:
- One in five employees feel underappreciated for their contributions, which is hindering their engagement at work.
- Two in five employees say their manager is just “okay” at recognizing their work.
“HR leaders are facing unique challenges right now and need to prioritize the top factors to improve engagement, retention, and employee satisfaction,” summarized Baumgartner.
Contact Employer Flexible today to find out how we can help you offer comprehensive and competitive benefits, along with HR tools, that can help you attract and retain top talent.