The PEOs New Competitive Advantage
The world of HR is transforming and like employers, this presents PEOs with a unique opportunity to enhance their offering and gain a competitive advantage in the future of work.
What is a PEO?
PEO is an acronym for ‘professional employer organization.’ They support small and midsized businesses to manage specific HR responsibilities and risks through co-employment.
The Value of PEOs
PEOs add value to your business by providing HR departments with the tools they need to stay compliant and support their employees.
Some of the top HR services that a PEO company provides:
HR consulting and administration
Payroll processing
Health insurance benefits
Workers’ compensation insurance
Retirement savings plans
Legal compliance
Employee training and development
These contributions strengthen employee relations. The National Association of Professional Employer Organizations (NAPEO) conducted a study on PEO users versus non-PEO users. The research found that employee engagement was five points higher among PEO users than others. The study also showed turnover was 10 to 14 percentage points lower for companies that used PEO services versus comparable companies that did not.
Since a PEO handles much of the grunt work of Human Resources, it allows HR teams to focus on company culture and Employee Experience. As the Employee Experience grows increasingly important, HR departments need tools that support them in delivering the quality Employee Experience people expect and deserve.
Shifts in HR
Employee Experience is increasingly important to an employer’s bottom line and delivering satisfaction goes beyond compliance. According to the U.S. Bureau of Labor Statistics, 4 million Americans quit their jobs in July 2021. This has caused a power shift in the workforce where talent has become harder to find and acquire. With more jobs than people willing to work, talent has the upper hand over employers who must adapt to attract and retain talent. As employee expectations rise Human Resources teams need systems in place that support this effort.
Employee Experience has become the ultimate competitive advantage for employers in attaining, retaining, and engaging employees. Without an engaging employee experience turnover rates are high and engagement is low. Employers are feeling the heat from current and prospective talent, which presents PEOs with an opportunity to provide support in this area and leverage it as their competitive advantage. In a world full of options it’s important to ensure your organization, brand or provided services stand out and timing is crucial.
Now more than ever people are re-evaluating what they value. Employees have prioritized and it takes an engaging employee experience for one’s job to be at the top of that list. Employee engagement directly impacts not only turnover but customer satisfaction. Employee Experience and Customer Experience go hand in hand. This is why prioritizing Employee Experience must be top of mind for employers and PEOs
The New Opportunity
Employers' needs are changing and PEOs can continue to meet their evolving demands by enhancing their offering to include an Employee Experience software solution. By doing this PEOs can cement their spot in the future of work by showing their dedication to the evolving needs of their customers.
Although PEOs already are a competitive advantage for businesses and improve engagement, prioritizing employee experience gives PEOs a competitive advantage in their space. This is a unique moment when PEOs can help their customers not only survive the future of work but thrive.
Employees want more so employers need more.
Now more than ever people are re-evaluating what they value. Employees have prioritized and it takes an engaging Employee Experience for one’s job to be at the top of that list. Employee engagement directly impacts not only turnover but customer satisfaction. Employee Experience and Customer Experience go hand in hand. This is why prioritizing Employee Experience must be top of mind for employers and PEOs
How PEOs Can Join the Future of Work
The Future of Work is social and requires software that facilitates connection at work because when people feel connected to their work it shows. The proof is in the pudding productivity.
Employers have struggled with retention and turnover and although PEOs have helped curb this in the past, even with their existence the Great Resignation has led the workforce to take a huge hit. This means focusing on Employee Experience is not an if but a when. Employee Experience is more important than ever and while PEOs may free your business’ time to focus on this they don’t necessarily take on this task for you.
When it comes to Employee Experience platforms it’s about keeping your people connected. What creates a connecting work experience is facilitating the social aspect humans biologically need. While software like Slack improves collaboration they don’t cultivate a sense of belonging. This is where Employee Experience platforms bridge the gap.
With an EX platform, you can connect your team and create a culture where people feel that they belong. HR is more people-focused than ever and data shows that people want purpose and meaning. Software like ConnectUs is designed to bring teams together, provide role clarity, and connect employees to their organization’s purpose.
The Future of Work is referred to by some as the Gre Re-Design because it requires creative solutions to facilitate meaningful and engaging workplace experiences. Employee Experience is about more than just compliance and PEOs that reflect this in their offering will benefit most.
The Bottom Line
The future is now and PEOs that align with the people-first movement that is driving the workforce will set themselves apart from competitors. The industry is full of potential as business owners and employees navigate the new work landscape. Being flexible is the ultimate advantage and with a positive Employee Experience organizations can achieve and maintain success.