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70% of American Companies Have Got this Wrong! Is your company one of them? And can a PEO help you get it right?


By: Shraga Jacobowitz

With Labor Day firmly behind us and the end of summer officially marked, employees around the nation have begun yet another year of work. And while some may have anticipated this return to regular schedule with excitement, (including many Moms & Dads), most employees wake up each morning with a sense of dread at the prospect of facing yet another work day. In fact, according to a recent Gallup survey, shockingly, 70% of the US workforce are not happy with their jobs.   And this, my friends, is simply too many people who are not productively contributing to their companies to facilitate economic growth.  As any good manager or boss will tell you, unhappy employees always equal unproductive employees.

It is clear that being a task master and snapping the whip (figuratively, of course…or at least I hope so), is not the way to get more productive workers.  Employee job satisfaction and work happiness rank highest in creating a productive environment and getting the most out of your employees.  It is for that reason that EMPLOYEE ENGAGEMENT has become the new buzz word among some of the biggest corporations. In fact, like the apple, check mark and coffee of our last article (click here for a quick review if you missed it), it is some of the biggest firms that rank highest in employee engagement and satisfaction.  We’re not going to drop names here (who are we kidding, of course, we’re going to name drop), but you may of heard of some of these companies, i.e., a little website called Facebook and small search engine called Google rank in the top 5 for Employee Engagement.

Surprising?  Perhaps not. These are known as some of the coolest places to work at. I mean, just check out their cool office spaces here and here. But what you may find surprising is that these same firms also rank high in the amount of work they demand from their employees and the stress that the work entails.  In fact one Google employee’s review of the company was that it is both “the best place [to work] and most demanding.” Similarly many of the Facebook employees in their company review stated both their love for the company and how busy they are at work almost simultaneously.  I know it seems contradictory–to love work when having a heavy workload– but guess what, it’s not!

That’s right, the amount of work and stress these employees have does not detract from their job satisfaction and overall happiness at working for these companies. So hard work and high stress can still equal happy employees? Definitely worth exploring, no?

So what are these three companies doing right that you (and apparently 70% of businesses) may not be doing?

According to a poll of their employees, nothing major. However, small changes in how you treat your employees can change the entire atmosphere of your company and create a place where people are happy to return to work.

One Facebook employee summed up Facebook’s attitude towards their employees, simply stating, “You won’t find a place that cares more [than Facebook] about its people.” Now close your eyes and imagine your employees talking about your company like that. If you can’t imagine it, it may be time to make some changes.

You can always take a cue from Facebook and Google whose employee engagement policy includes small perks, such as free lunch and snack to large ones, such as on campus health and dental centers.  Some of the benefits listed by employees as reasons they loved working at these companies include:

  • Incredible benefits including stellar health insurance (even offered to part-time employees), gym/wellness reimbursement, daycare reimbursement (up to $3k a year), donation matching and 401k matching.
  • Amazing maternity and paternity leave. Facebook actually pays out “baby cash” to employees for new births and adoptions.
  • Excellent compensation that rewards strong performance and fair, well thought out review processes.
  • Lots of vacation days and paid time off.

Okay, I know exactly what you are all thinking at this point…thanks a lot. Obviously, these companies have the money to allow them to offer such great perks and benefits to their employees, but how am I supposed to be able to do the same for my employees?

I shall insert a shameless plug here. But it simply is true that this is exactly where a PEO can help…and we mean really help!  A PEO gives you the resources of a bigger company, so yeah, you can compete with a Facebook or Google….at least in the benefits you can offer. In addition, with HR professionals on staff, your PEO partner can help you work out programs that reward strong employee performance and/or think of extra perks that your specific employees would appreciate. Your PEO’s HR specialist can even help create those fair and well thought out employee reviews that Facebook and Google are so famous for, so that your employees feel appreciated, but better yet, you have a clear picture of how happy, satisfied and productive they are being. Now what’s better than that?

So stop being part of the majority, especially, when in this case, they’ve gotten it, oh, so wrong.  Instead, let a PEO help you create an environment that your employees will look forward to coming to work each day.

Want to find out more about how a PEO can help you with your Employee Engagement, contact ARC Consultants for more information.

The Apple, the Check Mark & Coffee: What they have to do with your business & why a PEO can actually help improve it

By: Shraga Jacobowitz

Okay, if I did my job correctly, you are right now scratching your head and are intrigued by the title of my article.  Because what do apples, check-marks and coffee have in common? And further, what in the world can these three things have to do with the business world, my business specifically and even more confounding, PEOs?

However, it’s really quite simple. These three seemingly unrelated items each represent three mega-corporations: Apple, Nike and Starbucks. One of the core things these three corporation hold in common is that these three companies distinguished themselves from the thousands of companies across the country by clearly establishing their company culture.

Think Apple, and you think simplicity, serviceability and quality. The Nike swoosh brings to mind athletic prowess and reaching for impossible goals. Similarly, Starbucks is synonymous with fantastic customer service and even better lattes.

Okay, you’re thinking, you’ve piqued our interest, but you still haven’t answered our more important question, “What do these companies have to do with my company and a partnership with a PEO?”

Again, the answer is simple. Creating your company culture is one of the key components of attracting faithful customers, (ask an Apple user to use an Android, a Nike enthusiast to wear any old sneaker or a Starbucks connoisseur to G-d forbid drink home brewed coffee and you’ll see what I’m talking about). But this culture is not just about retaining your customers. Having a strong company culture is almost as important to retaining your employees as it is to retaining your customers.

Back to our apple, check mark and coffee, all three of these corporations have excelled in retaining their employees, with Apple retaining about 81% of its worldwide employees. Nike was listed as one of the top 100 companies to work for with a mere 9% voluntary turnover rate.  Meanwhile, Starbucks has bucked the trend for quick serve restaurants, which usually has a 150-400% turnover rate, with an astounding 65% turnover rate, beating the industry average by 140%.

So, we know now that creating and maintaining a strong company culture can be the key to increased employee productivity across the board. This is because when there is a strong culture attached to your company, employees feel like they belong to something important, and they want to be part of making it better. In turn, your employees will love coming to work when they are part of something bigger than themselves. When employees feel like they fit into a company’s culture, they will develop deeper relationships with their colleagues, be more loyal to the company, and be more productive than ever.

Of course, employers benefit from a strong company culture, too. Having happy, productive employees who are giving their job their all, is one of the best things you can do for your company.  In fact, having a winning company culture cannot be overstated. According to a Bain & Company Survey America, 81% of 365 companies throughout Europe, Asia, and North America believe that a company lacking a high-performance culture is doomed to mediocrity.

But again, you’re probably asking yourself, “What in the world does all this have to do with PEOs?”

Elementary, my dear Watson (a change from my normal answer of “It’s simple”). Your company’s culture is the personality you infuse in your company. It defines your office environment, the way your employees feel about their work, and creates your company’s goals. It includes a range of elements, including company mission, values, ethics code, and expectations.  And because it fosters a great work environment it increases productivity across the board.

The importance of establishing and maintaining a strong company culture leads many business owners to question if partnering with a PEO or a current PEO partnership will affect their well-established company culture. It is normal to wonder if it’s possible to still maintain the mission, goals, attitude of their company, when their employees are now being dealt with by an outside party.

Worry not, business owners. As I stated in the title, partnering with the right PEO shouldn’t change anything about your company culture. Seems a little too good to be true? Are you having flashbacks to your last co-living arrangement that went south really quickly or your elementary school science project that you “co-worked” on, and thinking co-anything (whether co-living, co-working or co-employment) has to change everything?

Many business owners worry that partnering with a PEO or their existing PEO partnership will make employees feel disenfranchised or set aside or that they will not know who they are working for or what company goals they are working towards.

I repeat, if implemented correctly, joining a PEO or being part of a PEO should change NOTHING about your company’s culture. In fact, handing over all your HR duties to a PEO, allows you to focus more fully on developing and maintaining your company culture. In addition, by utilizing the services of a PEO, you’ll be better equipped at finding the right employees for your business that fit your company’s culture. A PEO can assist you with the tedious recruiting process, including interviewing candidates, resume-screening and performing background checks on prospective employees. A PEO can also help you create, implement and change company policy. And in doing so, PEOs enable you to create a team that personifies your company’s culture.

So what is the SECRET to joining or being part of a PEO, without upsetting your current company culture?

It really is simple this time: KEEP THE LINES OF COMMUNICATION OPEN!

Honesty and transparency are crucial to good company culture, so if you’re considering partnering with a PEO, simply TALK to your employees about this decision. Simple, right?

This lesson can be learned from Zappos, another leader in maintaining a thriving company culture. One of Zappos’s ten core values is “Build open and honest relationships with communication.” Zappo’s founder, Tony Hsieh embodied this value when he announced Amazon’s $850 million acquisition of Zappos in an open letter to all Zappo’s employees in 2009, eliminating the normal panic that ensues when rumors of a corporate takeover begin to circulate.

Let your employees know of your decision to partner with a PEO and why you’ve made this decision. Explain to them the benefits to THEM in bringing the PEO on board, including better benefit packages, access to better health, dental and vision insurance plans, and a safer work environment. In addition, because PEO has access to technology that an average company cannot afford, your work process is made that much easier.

Be upfront about what the PEO will handle and what your company will handle. Most importantly, explain that while you and the PEO are now co-employers, your company is still the one leading your employees and therefore your company still holds the same values as before.  A PEO should align with your company’s existing infrastructure to provide complementary expertise– they should not be taking it over.

In fact, if the transition to joining a PEO is handled correctly, working with a PEO can actually improve your company’s culture. After all, happy employees is one of the key elements of having a strong company culture. With the new benefits and the streamlined responsibilities, employees will be glad to know that your company is still looking out for what’s best for them and the company. A PEO consultant/broker and the PEO you choose to partner with should be able to help you complete this transition seamlessly. Communication between your company and the PEO throughout the transition period and the partnership is essential to maintaining your company’s culture in this arrangement. In addition, because PEOs employ seasoned, certified HR professionals who have experience with various industries, these experts can also help in making shifts in company culture, when necessary. This expertise can prove invaluable when structuring, maintaining or changing your company’s culture, and as a partner of the PEO, it’s at your disposal.

So, take the advice of the apple, the check mark and the coffee, and build up your company culture for optimal customer and employee retention, but don’t let this goal stop you from taking advantage of all the benefits a PEO can offer your business. Now, all of a sudden, I’m in the mood of wasting endless hours on my iPhone, running a mile and getting a coffee simultaneously…. I can’t begin to imagine why.

Still not convinced bringing a PEO will not adversely affect your company’s culture?  Call ARC Consultants and let them help you partner with a PEO that aligns best with your company’s culture.

Unleashing the Power of Your PEO

By: Shraga Jacobowitz

So, you’ve just joined a PEO or perhaps you’ve been part of a PEO for a while already. We’re sure you’re happy to have all the nitty gritty of your Human Resources department off your plate, (after all you didn’t start your business to become a Human Resource manager).

But, are you sure you’re really taking full advantage of your PEO partnership?

If you’re simply using a PEO to handle your human resources needs such as benefit packages, insurance, liability and risk management, to name a few, the answer to that questions is a resounding NO!

When partnered with the correct PEO, your company should not only be benefiting from the ability to handle your current needs, but should be able to leverage this partnership to gain top talent, maximize the potential of your current workforce and prevent employee turnover.

The primary reason a company chooses a PEO, over, for example, outsourcing their HR management jobs is because PEOs are a co-employment arrangement allowing companies to maximize their benefits without losing control of their employees. Thus, the partnership should be geared to helping your company, not only maintain control of, but getting the most out of your workforce.

So, how does a company leverage their PEO to maximize their workforce potential?  Here’s three ways your company can use your PEO partnership to do exactly that.

  1. Offer attractive benefit packages. In the changing market of millennial hires, attracting top talent is about more than just the paycheck. Potential employees are looking for great employee benefit packages as well.  And these new hires want it all….the best health insurance plans, a retirement plan that makes sense, life insurance, etc.  Because PEOs aggregate employees from multiple companies, partnering with the right PEO allows you to offer the benefit package of larger corporations at competitive prices.  The PEO’s ability to leverage the combined amount of employees also allows you to offer flexible benefit packages, so you can create the perfect match for your employees’ needs and lifestyle.

So how do you ensure you’re offering your current and potential employees the best packages? When discussing benefit packages, make sure your PEO is offering you and your employees the following:

  • A wide range of options for each employee to choose from.
  • Coverage for new hires with little or no waiting period.
  • A stable health care provider network with an updated administration system.
  • Familiarity with your needs, including a mastery of the complex issues associated with a dispersed workforce, if you are looking to expand out of state or overseas.
  • And finally, make sure that your PEO partners only with companies that resemble your own industry and workforce profile. In this way, your low risk business isn’t being lumped together with high risk companies, or high wage employees with blue collar employees, which can cause your insurance rates to rise and benefit packages to be limited.
  1. Take advantage of professional development and employee training opportunities. Many PEOs offer live/on-site, virtual/video or other learning opportunities for your employees so that they can develop their skills and expand their knowledge and expertise. The ability to offer such development and training is a great way to attract potential employees as well as utilize the full potential of your current ones. Make sure to ask your PEO about such opportunities so that you can take full advantage of what they have to offer.
  1. Utilize their HR professionals. While all PEOs have HR professionals on staff, when you choose a PEO to partner with, make sure that their pros understand YOUR business.  With the right HR professional in your corner, they can help you anticipate and resolve problems before they even develop. These pros can also help you with the interview, training, performance management processes so that you’re assured that you’re hiring the best employee for your business and its potential growth.

An added benefit to having HR pros on your side….it’s their job to stay on top of new regulations and compliance issues, so you don’t have to.  Keeping you up to date, notifying you of and dealing with any regulation and/or compliance changes should be part of your PEO package. Again having pros who understand YOUR business, ensures that they’re aware of any and all regulations or compliance laws that affect YOU specifically allowing you to always be on top of your game.

Taking advantage of these three points are just some ways to maximize your benefits from your PEO partnership.  Knowing all the benefits that can be gained from the PEO partnership is an important component of maintaining your PEO partnership.  Whether you’ve been partnered with a PEO for one day or for several years, reviewing the benefits you’re currently receiving and exploring others that you’re not, can definitely maximize what you are getting out of your PEO partnership.

That way, when you’re asked next whether you know if you’re taking full advantage of your PEO partnership or not, you can answer a resounding YES with absolute certainty.

Not sure how to take the next step in taking full advantage, ARC Consultants can help you review your current PEO and ensure that you are.  Give us a call or email to see how we can assist you in maximizing your benefits.