Each and every day, you focus on growing your business, making it more competitive, and taking good care of your employees so you can keep the best ones under your roof for a long, long time.
It’s exciting and gratifying – but it’s also a lot to handle. As you focus on the critical importance of employee engagement and retention, it helps to know which factors are the biggest drivers of these metrics. Having relevant data at your fingertips makes decision-making easier and more successful.
The News from NAPEO
A recent survey conducted by the National Association of Professional Employer Organizations (NAPEO) used data from small and mid-sized business owners and their employees to examine the differences in a variety of areas – including engagement and retention – between PEO client and non-PEO client companies. A total of 1,588 employees – 1,143 from PEO client firms and 445 from non-PEO companies – was collected and analyzed.
Compared to those working at non-PEO companies, employees of PEO clients were significantly more likely to report that their employers demonstrated a true commitment to them. This conclusion can be broken down into three factors that make a real difference when it comes to engagement and retention:
- PEO client employees felt their employers had good hiring practices, as well as HR policies and practices.
- They also felt their employers did a good job designing jobs, and
- They felt they were provided with good training and development opportunities.
A Closer Look at the Data
The NAPEO survey included three questions regarding the quality of companies’ HR practices. When asked to respond to these statements, PEO client employee responses averaged 7 percentage points higher than those of non-PEO company workers:
- Our company has clear HR policies (+9 points higher).
- I know who to contact to get help if I have benefit-related questions (+5).
- I feel comfortable I have someone to talk to if I have an HR problem (+6).
PEO client employees also recorded significantly higher scores on these questions:
- I would recommend our company to my friends as a good place to work (+5).
- Our company inspires my very best performance (+4), and,
- I expect to work here until I retire (9 percent of respondents).
The overall average score on these questions was 5 percentage points higher for PEO employees.
Looking For Resources to Help You Continue to Grow Your Business?
This is probably not the first time you’ve heard that good hiring and HR policies, well-designed jobs, and training and development offerings play a big part in recruiting and retaining the best talent. But if you’ve been considering a PEO partnership, these statistics may help solidify your strategy. NAPEO’s research findings suggest that PEOs are able to help business owners create a more engaging work environment by better management of the “people side” of a business, combined with an enhanced ability to focus on key factors that drive success.