High turnover rates are not a good thing for business. Yet in the aftermath of the Great Resignation, high turnover rates can make it much more difficult to maintain business continuity. Employers experiencing a turnover problem often find themselves struggling to keep things moving forward. Could outsourcing HR be the solution?
To be clear, it is rare that a company’s high turnover rate can be attributed to a single issue. Management is usually looking at multiple factors. Likewise, outsourcing HR is not a single solution to a turnover problem. But it is one strategy that can be looked at, and combined with others, to address high turnover rates.
HR Can Become Stagnant
One of the reasons we recommend looking at outsourcing HR in the midst of a turnover crisis is the reality that HR can become stagnant. Let’s face it, there isn’t a whole lot of technological innovation that keeps HR exciting. It is easier than you might expect for the HR department to become complacent. And when that happens, complacency has a bad habit of spreading across a company’s entire workforce.
Outsourcing HR changes things. Although HR providers can also become complacent themselves, they are less likely to do so given that HR is their bread and butter. Growing their own businesses requires innovation, hard work, and a commitment to always doing better on behalf of their clients.
Outsourcing HR introduces a Fresh Perspective
Another thing to consider is that outsourcing HR introduces a company to a fresh perspective. HR partners can come in with an unbiased mindset that allows them to more clearly see why turnover is a problem. Having a fresh perspective goes a long way toward honestly identifying problems and then moving onto workable solutions.
A third-party HR provider can help struggling companies identify the root causes of their turnover struggles. Here are a few of the more common ones:
- Lack of competitive salaries.
- Lack of employee appreciation initiatives.
- Inadequate career growth opportunities.
- Inadequate employee training.
- Rigid scheduling and job expectations.
Again, it is rare that a company struggles with high turnover rates due to a single issue. It’s generally multiple issues that all contribute to the problem. Unfortunately, it can also be difficult for management and HR personnel to recognize the issues fully due to their inside perspective. Outsourcing HR offers an outside perspective capable of seeing things more clearly.
Analyzing and Formulating
So, how can outsourcing HR help beyond introducing a fresh perspective? An HR partner can start by analyzing and formulating. The analyzing portion involves taking a good look at the current workforce and what makes them tick. The idea is to identify and analyze whatever is making employees unhappy enough to look for new work elsewhere.
A comprehensive analysis is followed by formulating strategies designed to change the current workplace dynamic. An HR provider could recommend any number of strategies including:
- Rethinking employee benefits.
- Implementing employee recognition programs.
- Developing new skills training options.
- Developing mentorship opportunities.
- Giving employees more flexibility in when and how they do their jobs.
Just as high turnover rates are usually the result of multiple factors, addressing the problem often requires multiple strategies. But this is where outsourcing HR tends to prove most valuable. An outsourcing partner can introduce and implement corrective strategies that management would have never thought of on their own.
Outsourcing HR is a way to boost HR performance without having to hire more people or force current HR team members to take on more responsibility. But it turns out that outsourcing is also an incredibly good strategy for addressing high turnover rates. Contact us today to learn more about how outsourcing your HR needs can optimize your business.