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How a PEO Helps Increase Employee Retention

How a PEO Helps Increase Employee Retention
Reading time 8 Mins
Published on Jul 18

High employee turnover rates can be a troublesome issue for business owners, causing unnecessary financial strain on their companies. Consistently poor retention may signal a significant disconnect between management and employees. In order to reduce the loss of talent in today’s highly competitive job market, employers must determine the real reasons for staff attrition and work to implement effective, long-term solutions.

Comprehensive employee retention strategies can be multi-faceted and are integral to the health of a business. As part of our PEO services, Sheakley provides full-scope employee retention support to aid in retaining competent, knowledgeable staff.

Why Do Employees Stay with Your Company?

A good starting point in building an effective employee retention strategy is conducting “stay interviews”. A stay interview is designed to help an employer gain insight into the reasons why tenured employees stay with the company.

These employees may feel more engaged with the company, with their assigned tasks, with the clients they manage, or with their co-workers. They may have been recognized by their manager for contributions to the team and feel more appreciated. They may feel more fulfilled by participating in volunteer opportunities provided by the company. Whatever the reasons may be, gaining this knowledge will help with retaining current employees, increasing your company’s appeal to prospective talent, and motivating new hires.

Strategies for Increasing Employee Retention Rates

If a company doesn’t yet have a defined, comprehensive employee retention program, it’s important to begin developing one. It must be structured on a framework of continual engagement and encourage long-term growth. Effective programs must include:

  • Recognizing workers’ contributions to the organization.
  • Keeping employees engaged.
  • Showing all team members that they’re appreciated.
  • Investing in employees.
  • Building an inspiring workplace culture.
  • Improving employee satisfaction.
  • Instilling company values.
  • Clearly communicating the company’s mission and leadership’s vision.

By making improvements in some key areas of human resource management, an employer can reduce turnover rates and encourage team members to pursue a future within the company.

Mission and Vision Statements

Creating and communicating a clear mission and vision statement allows employees to understand the foundation and principles on which the company was built and the direction in which it is heading. It is essential that company leadership work to instill these same values into the workforce. Doing so will inspire employees to adopt the company mission, strive towards a shared goal, and feel a greater sense of loyalty.

Employee Handbooks

The employee handbook provides a convenient, go-to reference where employees can find a comprehensive listing of the company’s policies, procedures, and rules. Handbooks should be electronic and published internally online, allowing for easy updating any time additions or revisions are made. Employees should always be notified of changes to the handbook.

It is also important to periodically review your handbook to ensure that it provides your employees with complete, comprehensive information. Any sections that are unclear or inadequate can lead to unnecessary confusion. Communicating clear and abundant information to your employees is key to maintaining accountability and increasing overall satisfaction.

Showing Appreciation

When employees feel valued and appreciated, they are more likely to stay with a company. Recognizing and rewarding exceptional employee performance can increase engagement and motivation across the entire workforce. Top talent can also be called on to mentor other employees, giving them the encouragement and guidance they need to stay inspired and grow within the company.

To show company-wide employee appreciation, some employers sponsor fun events like cookouts, picnics, lunches, or family days. Others have annual awards ceremonies where employees who have gone above and beyond are recognized for their contributions. Some employers choose more personal recognition, like “Pass the Praise” notes, which are hand-written thank you cards acknowledging an employee’s accomplishment.

Sheakley’s PEO can provide ideas, help plan, and aid in facilitating your employee appreciation efforts.

Dedication to Quality

Management’s level of commitment to the quality of the company’s products and services can significantly increase employee retention. Consistent evaluation and improvement of all aspects of the business signals to employees that company leadership takes pride in what they’re doing. Involving employees in this process can ensure that they’re invested in the long-term health and prosperity of the company as well.

Employee Development

It’s important to identify and nurture individuals that show advancement potential. They should be asked where they see themselves going within the company and be provided with the resources needed to get there, such as:

  • Tuition assistance to aid in the completion of an Associate’s, Bachelor’s, or Master’s degree in an associated field.
  • Training sessions and programs to expand knowledge and expertise in their field.
  • Trade show sessions and workshops to aid in developing additional skills needed for their position.
  • Mentorship by a tenured, experienced employee to offer advice and guidance.

Company Culture

Promoting shared goals and values, a commitment to quality, appreciation for excellence, and employee advancement are all fundamental to building a workplace culture that inspires employees to remain with a company.

Many businesses are taking this to the next level by creating Employee Resource Groups. These groups can be created for a variety of purposes, such as supporting LGBTQ+ employees, promoting community involvement, or aiding employees with lifestyle changes. With an increasing number of Millennials and Gen-Xers entering the workforce, it is expected that these kinds of social impact programs will be in high demand and an integral factor for job applicants.

Employee Training

To become valuable, confident, and successful members of any team, new employees must receive proper guidance and instruction on the skills required to perform their job functions. Sheakley’s PEO can assist you with developing a comprehensive training program, ensuring that all new hires are equipped with the tools they need to succeed in their new positions.

In addition to building job-specific programs, the PEO offers training courses on important and sensitive topics such as sexual harassment, bullying, and discrimination. Sheakley staff can conduct in-person training sessions or employers can opt to utilize pre-recorded videos instead.

Providing Feedback

Constructive feedback can be a valuable tool for employees to gauge their performance and progress within the company. Sheakley has compiled a variety of review templates for clients to use when evaluating employee performance, including peer reviews, self-interviews, and manager interviews. If the standard templates are insufficient, Sheakley can develop a custom review that fits a client’s specific needs and metrics for evaluation.

Advancement Opportunities

Before spending valuable time and effort looking for external applicants to fill open positions, leadership should assess the promising talent within their company for possible promotion.

Current employees provide a distinct advantage because they are already accustomed to the company’s policies, have a certain level of loyalty, and are able to acclimate to new positions more quickly. Filling the same positions with external applicants requires a much greater expenditure of resources, with no promise of longevity. When possible, always promote from within and fill those vacancies with new hires.

Employee Grievances

It can often be difficult for employers to recognize problems within their company because of their proximity to the issues. Sheakley’s PEO can act as a neutral party and mediator when grievances and disputes occur, especially between management and employees. With proper handling, minor issues can be resolved before they turn into major problems.

The PEO can also provide retraining when needed and coaching to improve overall communication. If a situation arises that requires specific or specialized outside solutions, such as sensitivity training, counseling, or safe driving, Sheakley will work with the client to connect them to the appropriate resources.

Exit Interviews

Exit interviews are an invaluable means of obtaining information vital to improving employee retention. Sheakley’s HR professionals conduct these interviews on the client’s behalf. By serving as a neutral third-party, PEO experts are usually able to obtain more honest feedback on the employee’s experiences than would typically be given if the interview was conducted by client management.

The answers provided during these interviews offer insights into the reasons individuals are choosing to leave your company. They produce the hard data needed to make key adjustments in policy, training, management methods, and communication that will reduce overall turnover rates.

Succeeding in Employee Retention

The modern workforce is becoming more restless and demanding more from employers, making employee retention seem like a constant, uphill battle for most companies – but it doesn’t have to be. By partnering with the PEO, clients gain access to the expert tools and professional services they need to build programs vital to attracting and retaining top talent.

Sheakley’s HR experts free companies from the overwhelming burden of HR responsibilities, giving owners and managers back the time and resources they need to grow their businesses with the support of more committed and satisfied employees.

Sheakley PEO for Ohio Employers

Sheakley’s PEO provides comprehensive HR services to small and medium-sized employers, including HR management & support, benefits administration, workers’ comp, training & education, compliance, safety programs, and more. Our solutions help employers decrease costs, reduce risk, and provide the best possible workplace environments for their employees.

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