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Keeping Employee Turnover Rates Low with PEOs

04/27/2016

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PEOs Help Keep Employee Turnover Rates at a Minimum

Employee turnover is a difficult process for any business. It’s very time consuming, and while positions are left unfilled, there is extra stress on existing employees to fill the gaps so important work is not left undone. Employee turnover can also effect your company on a deeper level by damaging your brand, affecting employee morale, and even decreasing the quality of candidates you are able to attract.

If a well-qualified individual is considering working for you but notices that your company has a high turnover rate, then they are going to be less likely to accept the position. Moreover, employee turnover rate is very expensive for a company, with costs averaging at about 150% of the employee’s salary (think of hiring costs, onboarding costs, and missed-opportunity costs). Let’s face it — no one wants to waste time or money dealing with employee turnover when they can be focusing their attention on their core business. So how do we keep employee turnover at a minimum?

Join a professional employer organization!

Over the past few years, several studies have shown that companies who partner with a PEO enjoy higher growth rates and substantially less employee turnover rate. One study in particular, conducted by the National Association of Professional Employer Organizations, stated that employee turnover rate for companies involved with a PEO averaged at 30%, compared to the 42% employee turnover rate for companies without a PEO.

Business executives who are part of a PEO have more time to focus their attention on their employees, developing them, and making them feel appreciated for their hard work. Companies who are a part of a PEO have much more time to focus on their core business instead of dealing with all the technicalities of hiring and training new employees. The facts are simple and straightforward. Companies who partner with a PEO enjoy much higher employee retention and business growth overall. 

If you’d like to decrease your employee turnover rate and set your business up for success, contact your local LBMC Employment Partners representative today!

Learn more about our PEO.

Posted in: PEO