Why Engagement Matters for Your Bottom Line (And How Your PEO Can Help)

Engagement and PEOTwo startups launch during the same month of the same year. They both have founders with big ideas and big visions. Five years down the road, one of these fledgling companies has become a place where gifted tech employees can get a good start on their careers. Morale is great, retention is longer than average, and they have a steady pipeline of quality applicants ready to fill open roles.

The other company, by contrast, struggles to keep people on board. Turnover is high and employees are just clocking time.

What made the difference? Employee engagement.

How Engagement Makes Your Workers More Productive

Of course, there are many factors that contribute to a company’s success or failure. But it can’t be denied that engaged employees are happier and more productive or that engagement plays an essential role in hiring and retaining the talent that will secure your business success.

According to Blessing White’s X Model of Employee Engagement, engaged employees are both happy and contributing. It is when these two factors converge that employees are most likely to stay with your company and become top performers. When you have one without the other, you might observe top performers leaving for other companies or, conversely, satisfied employees who don’t get much done.

Satisfied, contributing workers are the ones who make more sales, come up with innovative ideas, support others on their teams, and go the extra mile to get the job done. In other words, they’re good for your bottom line.

The question is: how can you get more of them on your team? 

How Your PEO Can Promote Stronger Engagement

Engagement is a multifaceted concept that flows out of your workplace culture. It starts by asking how you can create meaningful work, positive experiences, and supportive relationships on the job.

But there is also a lot you can do on a practical level to support engagement initiatives, and that’s where your PEO comes in. A survey conducted by the National Association of Professional Employer Organizations (NAPEO) found that as compared with their peers, PEO clients were more likely to report:

  • Higher revenue growth
  • Profitability increases
  • Fewer concerns about hiring

Employees at those companies were more likely to believe their employers were competitive and innovative, and that they were providing superior service to customers. They were also more likely to report that their employees had clear HR policies, that they knew who to contact with questions about benefits, and that they had someone to talk to about HR problems.

PEOs support their clients with the “people” side of business so that business owners are free to focus on revenue growth, product development, and sales. And that leads to stronger engagement as employees perceive that their concerns and needs are being handled.

But what exactly can a PEO do to promote engagement among your workforce? Here are five engagement boosters you can expect from your HR outsourcing partner:

  • Employee Confidence – The NAPEO survey found that employees of PEO clients were more likely to believe their companies were taking the right steps to grow and remain competitve. That’s because these business owners have the freedom to focus on business strategy rather than trying to juggle HR responsibilities and administration.

  • Hiring – Hiring the right people is the first step toward building an engaged workforce. PEOs will help you with this process, from job descriptions and postings to interviews. Some also offer an applicant tracking system as part of their technology platform, which can help you sort through resumes and track candidates.

  • Problem-Solving – When your team members have HR issues or workplace complaints, do they know who to talk to? Do they feel confident that their concerns will be heard and dealt with appropriately? Most PEOs offer online resources to answer questions, and they will help you with grievances such as a workers compensation claim. Some also serve in an advisory capacity for legal questions if you are facing a lawsuit.

  • Access to Benefits Information – An online employee portal gives employees instant access to benefits information and plan details, and most PEOs include this in their service package. If they have questions, the PEO will usually provide a contact person for assistance.

  • Training and Development – Online learning libraries and training opportunities give employees the chance to improve their skills and knowledge. Your PEO may offer these resources through their technology platform, and some PEOs will also offer live webinars or onsite training. If this is important to you, ask about it during the research process as you consider possible providers.

It’s not hard to understand why engaged employees are good for business. Satisfied, contributing workers produce more and tend to stick around longer. That’s why smart businesses have begun investing in viable engagement strategies. For small businesses, working with a PEO may be the best way you can address some of the friction points that cause frustration for your team, and that’s an excellent step toward boosting workplace engagement.


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