Running a small business is extremely difficult. Whether you?re in charge of 10 employees or around 100, you have to spend time, money, and energy keeping them happy. Losing a good employee, for instance, is perhaps one of the worst things that can happen to your business if you hope to remain competitive in your industry.
Employee turnover actually results in a significant financial loss for companies. The cost of employee turnover can range between 30% to as high as 150% of the employee’s salary. So it?s essential that you do everything you can to ensure your employees are taken care of, both legally and financially, so they stay on board with your organization.
Dealing with payroll for employees, even the happy ones, can be difficult, too. The average pay raise is roughly 4.5% and of all the working businesses in the U.S., approximately 88% of them plan on giving their employees annual raises. If you’re finding it difficult to manage various HR and payroll services, you should consider outsourcing some of these business aspects to an employee self service. Professional employer organizations (PEOs) are responsible for assisting 14% to 16% of small businesses (with less than 100 employees) as of 2015, and these organizations are able to succeed more compared to their counterparts because they can free up time and resources to address other aspects of business.
There are quality PEO service providers available that can handle various payroll and financial aspects and help your company succeed. In addition, you should focus on training and retaining your quality employees so you don?t end up losing out on all that good work and money it takes to hire even more workers. Fully 46% of new hires don’t last and are let go from their jobs within 18 months of being hired. About 11% of these firings are due to a lack of skill, however, as the majority (89%) of firings are attributed to motivational reasons and lack of “coachability.” A quality employee self service organization can assist you with employee on boarding as well.
Don’t let your organization fall through the cracks because you couldn?t handle all the financial aspects necessary to keep your good employees on staff and working hard. Work with an employee self service to ensure a successful future for your small business. Contact Prism HR today for assistance and to learn more about how you can set your company up for success.