Idaho is a state known for its technology and science sector, which accounts for over 25% of the total revenue and over 70% of its exports. Before the COVID-19 virus hit, Idaho has seen its job market increase by 2.8% over the last year, with future job growth predicted to be 43.8%, almost 10% higher than the US average. And even though COVID-19 has caused some turmoil to the state's economy, many experts agree that the state's outlook looks good, and should rebound swiftly.
Yet, there is still a genuine danger of turnover from dissatisfied employees amongst all these positives and promising possibilities in the Idaho job market. For a company to thrive in today's economy, retaining and finding the most qualified employees is significant. Some studies even suggest that every time a company replaces a salaried employee, it costs them, on average, six to nine months' salary—staggering figures for losing just one person.
So how can a company combat or prevent this problem from escalating and resulting in significant money lost? Well, they need measures to exist in their workplace that can lower their turnover rates. And one sure-fire way to make this happen is to partner with a Professional Employer Organization, who can lower turnover rates up to 10 to 14% compared to companies not partnered with a PEO.
Competitive Benefits
Benefits can play a significant role in retaining top employees, especially when personalized to their needs. By working with a PEO, businesses can ensure they provide their employees with the best benefits. How? Because PEOs can provide these companies with the following:
- Access to benefit plans that are negotiated on behalf of thousands of worksite employees by experts
- Access to benefits at a lower cost than would be possible otherwise
Yes, PEOs have a lot to offer, especially when it comes to a company's benefits package. But to truly understand why competitive benefits are so crucial to your business, let us look at the following statistics:
- 78% of workers indicated that they would be more willing to stay at a job because of the benefits
- 51% of businesses report that using benefits to retain talent will become even more essential in the next three to five years.
- 44% of employees said that their loyalty to the company would increase if their benefits were customized to meet their needs.
That is why businesses in Idaho need to get ahead of the curve by updating their mandated benefits and wellness benefits.
Increase Engagement
When discussing employee engagement, it is essential to explain that it relates to an employee's connection and commitment to a company. In recent years, this engagement has become a critical driver and indicator of a company's success. Mainly since high levels of engagement are known to encourage customer loyalty, cultivate talent, and improve a company's performance and value.
So how do you increase engagement in your company? By partnering with a PEO. Employees of a company partnered with a PEO found that they were 5% more likely to say they were engaged at work versus companies that were not partnered with a PEO.
Create a Positive Workplace Culture
Another critical factor in keeping talented employees at your place of business is creating a positive workplace culture. When a company creates a culture with its employees engaged with their job, committed to succeeding, and loyal to the company, they provide their employees with an environment that they take pride in and want to stay at.
One critical aspect of a PEO is that it takes on administrative burdens that keep HR employees from focusing on creating a great workplace environment. As HR frees up to create more opportunities, such as bringing family-centered events into the mix, it cements the business as a positive institution that provides its workers the ability to live happy personal lives and succeed in their workplace roles.
Error-Free Payroll
Payroll issues are nothing new, yet can cause a business to lose many skilled employees. Just two payroll errors can cause 49% of employees to start job hunting.
This is one problem that a company needs to fix fast, and PEOs can be the perfect solution to help this issue. It is known that the best firms have already processed over $500,000,000 in payroll; in that case, PEOs are experts at payroll processing with their extensive experience in providing error-free payroll services for their clients.
Reduce Turnover and Grow Your Business
Idaho is a "work at will" state, meaning there is no specific employment relationship length. Either the employee or the employer can end their relationship at any time with or without notice or cause. This can be quite a challenge for any business as employees can leave for whatever reason they want, including reduced benefits, lousy workplace culture, or even pay issues.
However, as a business, you do not have to live with the stress of making a wrong move and losing top employees. In fact, there is a reason why 98% of business owners who are PEO clients would recommend a PEO to a small business colleague. Beyond the benefits mentioned above, employees of a PEO client are 8% more likely to want to stay with their employer until their retirements, which is excellent news for any company!
If you are an Idaho business and are looking to expand your business, drive up retention, and save money, partnering with a PEO can be just what you need to get this job done.
