Economic Trends

Employee turnover continues to be trending topic in business media today, driven in large part by turnover rates that demonstrate a near 17-year high. Employee turnover currently costs businesses in the United States nearly $11 billion annually, with the highest rates among tech and millennial workers.

At the same time, another defining feature of the American economy has been declining rates of entrepreneurship (https://www.nytimes.com/2017/09/20/business/economy/startup-business.html) . As big company salaries and culture attracts top talent, new businesses are facing the slowest growth they’ve seen over the last decade.

PEOs reduce the cost barriers of providing employees with competitive benefits packages and top-notch culture, and allow small and mid-sized business to compete with big companies for top talent. And the research shows just how effective PEO clients are at retaining their employees compared to national rates of employee turnover: companies using a PEO have 10-14 percent lower employee turnover compared to the national average. And PEOs help businesses survive. Companies that use a PEO for at least four quarters are 50 percent less likely to fail than the national average.

The media is interested in understanding the problem at a granular level and PEOs, by nature of their work with businesses in local communities across the country, are positioned both to comment on the problems and to offer solutions that are backed by years of demonstrated success.

Also, check “This Avoidable Situation Is Costing US Businesses $11 Billion Every Single Year” article by Bryan Adams, published by Inc: https://www.inc.com/bryan-adams/this-avoidable-situation-is-costing-us-businesses-11-billion-every-single-year.html 

 

Toni Curling, M.Ed., SHRM-CP

Client Service Manager

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