The PEO Effect on Hiring & Turnover

When tenured employees leave, the burden falls to management to find the best applicants to fill open positions. Today’s highly competitive job market and record low unemployment are making it difficult for businesses to attract qualified candidates.

If a company is able to find and hire experienced and knowledgeable talent, the onboarding and training process can be costly, both in time and productivity. It’s more important than ever for businesses to strive to retain the employees they have, but to also be prepared to attract the most experienced, proficient talent when turnover occurs.

Employment Marketing and Advertising

As part of its PEO services, Sheakley assists clients in writing and posting detailed job descriptions for open positions from entry to executive-level, tailored to appeal to the most qualified candidates. For an additional fee, the PEO can also provide other recruiting assistance, such as applicant pre-screening and interviews.

Whether a company is looking to hire externally or promote from within, Sheakley can bring its full breadth of human resource experience and insight to the entire hiring process, from identifying top talent to hiring the most capable professionals.

Recruiting Software Platform

In today’s bustling, fast-paced employment market, it’s important for businesses to find and hire the right candidates, fast. The PEO’s powerful JAZZ HR system allows businesses to streamline the entire recruiting process, from candidate sourcing to interviews and assessments. When a job is posted, it’s instantly shared across dozens of the most popular free job sites with a single click, allowing employers to connect with candidates wherever they are.

Competitive Employment Market Research

The PEO also uses cutting-edge data analytics to provide clients with general-industry and market-specific salary information, supplying vital insights into the trends and practices of their direct competitors. Having this data readily available allows employers to fine-tune their job offerings and recruiting efforts to remain strategic and relevant in the marketplace.

Benefits Administration

Sheakley has partnered with industry-leading insurance providers to create and offer the most complete and attractive healthcare benefits package available to its clients. The PEO also provides a range of fringe benefit options, including 401(k) plans, Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), and Health Reimbursement Arrangements (HRAs). Sheakley’s comprehensive suite of high-quality benefit plans presents its clients with a distinct advantage over other companies vying for top talent.

Employee Handbooks

The employee handbook is one of the most important resources for both new hires and existing employees. It should clearly reflect the company’s values and culture, communicate policies and procedures, dictate employee responsibilities, set management and leadership expectations, showcase the benefits being offered, and provide a clear path for employees seeking help with issues and grievances. Sheakley’s PEO works with clients to create new handbooks, or improve existing ones, to ensure compliance with all state and federal laws and guarantee a quality resource is available for employees.

Employee Training

As a Sheakley PEO client, employers gain access to a range of training resources covering a wide variety of human resource and safety topics essential for ensuring a properly educated and informed workforce. Training sessions can be performed on-site by a certified expert, if requested. Clients also have access to a comprehensive online library of courses for both management-level and regular employees. Whatever training needs an employer may have, Sheakley can meet them.

Retaining Current Employees

A high turnover rate can have significant adverse effects on a company’s bottom line. There are distinct advantages in retaining talented, tenured employees. Businesses can ensure higher retention rates by implementing proactive management practices, such as:

Consistency and Fairness — Treat all employees with dignity and respect, no matter the situation. Good will goes a long way towards improving morale.
Showing Appreciation — Recognize employees who go above and beyond for the company. Consider holding employee appreciation events or other team-building activities to cultivate trust and loyalty.
Employee Satisfaction — Perform “stay interviews” and exit interviews to gauge employee sentiments towards the company. Listening to employees is critical to improving culture and retention rates.
Employee Development — Identify individuals with advancement potential. Nurture them and provide them with the tools and resources they need to become future leaders within the company.
Company Culture — Foster a culture of inclusion, acceptance, and tolerance in the workplace. With more and more Millennials and Gen Xers entering the workforce, social programs and employee resource groups are integral to attracting and retaining young talent.
Performance Reviews — Conduct regular performance and peer reviews so employees have constructive feedback on their job effectiveness. Clearly defined metrics and goals help employees improve.
Mission and Vision Statements — Create mission and vision statements that clearly communicate the company’s values and goals. These act as a general roadmap for the direction the business is heading and a guide for employees to follow.
New Hire Training — Develop a comprehensive training program that ensures new hires receive the information and education they need to be productive and valuable in their new roles.
Advancement Opportunities — Cultivate top talent from within your company. Current employees are already familiar with the business and can acclimate to a new role much more quickly than a new hire.
Employee Grievances — Have resources and processes in place to address and resolve issues when they arise. Both management and employees benefit from a clear path to resolution of grievances.

Progressive Discipline Prior to Termination

Disciplinary action is an unfortunate, but necessary, aspect of doing business. Employees who are performing poorly in their assigned roles or acting out against co-workers can be a detriment to everyone around them. Outright, sudden termination should always be the last resort, as it can reflect negatively on the company.

Sheakley recommends a progressive discipline plan that gives the employee abundant opportunity to improve their attitude and performance before being terminated. This process may include verbal coaching, written warnings, and a performance plan that outlines the issue and provides clear steps for improvement. The PEO assists its clients with the design, review, and implementation of these performance improvement plans.

When Turnover is Good

It may be counterintuitive, but there are instances where turnover can be a good thing and have a positive impact on business.

During times of organizational transition and turnover, companies may encounter resistance to change from their tenured employees who are used to things being done a certain way. Oftentimes these employees can become so upset that they leave, allowing room for new employees to come in with fresh perspectives and ideas.

Businesses who are struggling with disruptive or combative employees, workers who consistently underperform, or individuals who don’t share company values may also see some turnover as positive.

Staying Current

In an ever-shifting landscape of rules and regulations, it can be hard for business owners to stay up-to-date on all of the changes that impact their companies. Sheakley offers an abundance of informational resources for its clients to stay on top of the compliance and regulatory news appropriate to their industries, including weekly blog posts and a quarterly newsletter.

The PEO also hosts frequent seminars and webinars, presented by leading experts, on the critical industry, market, and national topics that impact its clients.

In-House Employee Hiring and Turnover Systems

There are an abundance of moving parts in the machine that is business administration. In order for a company to manage the complexities of hiring and retention that Sheakley’s PEO provides, they must have:

Certified HR professionals, skilled in the entire employee life-cycle
Trained and proficient HR support staff
State-of-the-art HR technology platforms
Industry-leading recruitment software and specialists to source top talent
Efficient and effective employee record maintenance
A broad range of HR compliance knowledge
Employee benefit administration experts
A comprehensive Employee Handbook and qualified individuals to revise it
Proven industry compliance experts
Extensive training and employee development programs

The Path of Least Resistance

Small to medium-sized companies usually don’t have the capital available to purchase and maintain the HR technology and expert staff needed to ensure the acquisition and retention of top talent. Today’s growing businesses are discovering that outsourcing the full scope of human resource functions to a professional employer organization is the most efficient and affordable option available to them.

Sheakley’s PEO can provide all of the tools necessary to meet any business’s needs, from HR and benefits to compliance and risk management. The goal is provide clients with the most comprehensive, practical, and state-of-the-art administrative solutions available, freeing them to create teams of happy, loyal employees that work towards the common vision of sustained growth.

Employee Management

Full-Service HR

Reading time 8 Mins

Published on Jul 16

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