Did you know employee turnover costs businesses an average of $15,000 per person? This figure includes wages, the time and money you invested in training, and even lost productivity for your business. You also have to hire someone else, which takes time, effort, and money too.
In many businesses, employee turnover means losing a valuable member of the team. In a world where your people can make or break you, you want to keep the best talent on your side.
Many business leaders and HR managers want to reduce employee turnover. Outsourcing your human resources services is one way to accomplish that.
Outsourced Human Resources Services Understand Your Market
Outsourcing your HR services is helpful for reducing employee turnover not only in home operations but international markets too.
How does an outsourced HR services team help you retain employees in other countries? The team understands the market you’re operating in, and they can help you keep those employees happy.
Consider an American company opening an office in Canada. The American in-house HR staff are familiar with US employment law and health insurance regulations, but they know less about Canada’s healthcare system and employment laws.
Without this insider intelligence, the American team may offer benefits that don’t appeal to their Canadian counterparts or implement rules that don’t comply with Canadian employment law.
By outsourcing HR services to a team with expertise in Canada, you could avoid this situation. They can help you create policies and offer benefits that exceed your Canadian employees’ expectations.
Get up to Speed Sooner
How much would it cost you to expand your HR team by one or two people? How much would it cost you to train them to become experts in Canadian payroll or American employment law?
Those costs add up, and hiring and training take time and effort. Chances are your employees would already be leaving by the time you got your team up to speed.
Outsourcing HR services adds instant expertise. You can reduce employee turnover sooner and hang on to more of your talented team members.
You Can Offer More by Outsourcing Human Resources Services
Another advantage of outsourcing human resources services is that you can offer more to your employees.
Think about how easily you’d be able to add more training and development programs for your team. Training your HR team to deliver the programs or hiring more people to handle the increased workload may cause more stress, however. Then there are the additional costs of administering the program.
The same is true of other HR services, such as benefits administration, retirement savings, and even workers’ compensation insurance.
Teaming up with an expert HR provider allows you to offer all this and more without running up those additional costs or overburdening your own HR team. In turn, you can offer your employees a better work experience, which improves job satisfaction and encourages them to stay.
Become More Responsive
Finally, outsourcing HR services can make your organization more responsive to your employees’ needs.
First, the outsourced team may be able to handle the routine tasks that eat up your in-house team’s time. If your in-house team doesn’t have to worry about payroll every week, what else could they focus on? Chances are they’d be able to address individual employee concerns in more depth.
For smaller businesses, the outsourced HR team could help you achieve a better overall response rate. If your HR team is constantly overtaxed and can’t get everything on the to-do list finished, they may not be addressing employee concerns or issues in a timely way. By expanding your team and adding expertise, you can ensure your employees are being well looked after.
As you can see, outsourcing HR services is a way of offering a better experience to your valued employees. In turn, they’ll be more willing to stick with you through thick and thin.