A Strategy for Winning The War for Talent!
In today’s knowledge economy, the value of employees has increased exponentially.
The talent that exists in a company has become a key differentiator in a market in which products or services can be easily replicated. A company’s greatest asset is its people. The companies that realize this are more successful in this new economy.
Midsize companies, however, often lack the resources to effectively manage the talent acquisition and retention process, putting them at a competitive disadvantage when it comes to competing for talent.
How midsize companies can compete for talented employees
Many times, companies attract talent by developing or fostering a culture in the organization that people can relate to at an emotional level. Many midsize companies, however, don’t have the in house expertise to drive this higher level of employee experience. They compensate by burdening their managerial assets, specifically the time and attention of their executives, for the business of administrative HR duties like hiring and onboarding employees. When the time and attention of management is diverted from their company’s core products and services, that company is now compromised, that is… it is not functioning at its highest level because management’s attention is a finite resource best used for growing the business.
Often through business process outsourcing (BPO), by outsourcing non-core functions, leadership regains the time to focus on the business by leveraging the outsourced partner’s expertise and its technological infrastructure.
How business process outsourcing translates into improved employee retention
Look at it from the perspective of an employee who has decided to join a company. The new employee shows up for his or her first day and the first thing he or she realizes is the company is not ready. He or she has paper work to fill out, their office may not be set up, there’s no one to sit and explain his or her benefits package. Is that the experience new employees should have?
Employers want their new hire to come to the office excited, and that excitement can be sustained if you show them you’ve anticipated their arrival and can manage the basic functions of onboarding. Otherwise, you risk early disengagement, doubt and possibly the employee’s early exit.
An outsource partner choreographs onboarding with technology that makes it easy to fill out the necessary paperwork with a few keystrokes because the information generated from the interview can be used to pre-populate the required forms. The technology can even deliver a personalized video message from the CEO welcoming the new hire to the company.
Through an outsourced relationship, organizations can even have a benefits advocate (read subject matter expert) talk to the new employee about benefits, which comprises the second largest component of an employee’s total compensation.
First impressions are very important. It’s essentially a company making a deposit in an employee’s emotional piggy bank, so to speak. It builds loyalty, gives a good impression of the culture and a sense that they’re a part of a team. Particularly important to Millennials!
How companies can ensure employees maintain a high level of engagement
A big part of the employee experience is having someone who advocates on their behalf. Providing a resource to answer questions about payroll, their 401(k) and medical coverage can ease anxiety and keep employees focused on their role and increases productivity.
Health insurance is increasingly complex and expensive. Employees need and want to maximize their coverage, but that takes education and support. Having an employee benefits advocate helps bridge the gap between the insurer and employer, and can go a long way toward making an employee think twice about leaving the company.
Business process outsourcing is widely embraced by midsize companies. In many cases, it can cost less than one employee’s annual salary, but offers companies the resources, technology, people and processes of an entire HR department. If your employees are not the recipients of a great employment experience or feel as if they’re not an important part of your team, they may find what they’re looking for with your competitors. With the right outsourced partnership, you can cost effectively provide the resources to attract and retain the best and brightest, and align employees with organizational goals.
About the Author: Joe Cole, Executive VP Business Strategy, Sequent
Joe has been part of Sequent’s senior management team since 2002 and brings over 25 years of experience in business and entrepreneurial ventures. In his leadership role with Sequent’s business development team, and as a regional director, Joe’s extensive knowledge of the Professional Employer Services (PES) industry and the complex facets of the HR outsourcing industry serve him well in developing relationships and serving as a strategic business partner with clients.