What does decreasing attrition mean for HR Outsourcing?
The ‘job hopping’ phenomenon rampant in millennials might just have passed. Congratulations on holding strong!
Of all the stereotypes we attribute to millennials, the one that impacts organizations is whether a new hire will last the year, let alone a decade. Interviewing techniques and questions have evolved with changing trends in talent pools, leaving HR departments wrung out and tired of A/B testing.
Two decades ago, no one would have thought to ask a potential hire where they see themselves in two, five or ten years from the time of interview. But then again, two decades ago HR departments weren’t as standardized and high functioning as they are today. Over the past decade we see that more millennials would rather work out of a coffee shop, choosing their hours of work and demanding their preferred wages.
The change in modus operandi
The changing psychology of newer talent however, suggests that millennials might finally be ready to settle into a job and stay for the long haul. As a 2017 Deloitte Millennial Survey has found,
- 38% plan to leave within 2 years, compared to 44% in 2016
- 31% plan to stay beyond 5 years, compared to 27% in 2016
- 7% plan to leave soon, compared to 17% in 2016
While these statistics are heartwarming to see, there needs to be a deeper understanding for this change, and the pressure it puts on the HR function.
On one hand, the undeniable aging of millennials is considered to be a primary cause. Most now fall under the 27-37 age bracket, they make headway in their personal lives by way of marriage and start their own families.
On the other hand, organizations are beginning to attract the right type of talent with their unmatched perks and assurance of stability. However, with each hire bringing a different deal to the table, HR departments are now working overtime to complete the simplest of tasks.
Couple all of this information with a US Department of Labor 2017 News Release that shows an increase in job openings across the country and a decrease in attrition!
Is HR Outsourcing the next logical step?
Larger companies outsource HR functions such as payroll when they find themselves short staffed. The latest in HR outsourcing technology goes beyond simple payroll processing. Intelligent HR outsourcing lets you automate and operate your entire HR functions from a single place, freeing up your employees’ time to focus on tasks more closely aligned with business goals. Let’s delve deep into the potential benefits of outsourcing HR.
Small and medium enterprises tend to rely on manual entry spreadsheets for their payroll processes. Unfortunately, the high level of human interaction leaves the operation error-prone and unscalable. This can be especially tough when the business sees a large growth in terms of revenue and staffing.
Too much, too soon
Another common issue is one faced by HR departments that function across several entities of the same company.
Take, for example, the simple case of two engineers hired by the same organization but at different locations- say San Francisco, CA and Cedar Rapids, IA. Could you imagine how troublesome it would be to have to handle two separate spreadsheets just because of the disparity in average wages, state taxes and mandatory benefits granted in different states? And to process it all at the same time?
Outsourcing your HR functions at an early stage not only provides the peace of mind to transition and grow seamlessly, but it also allows you to efficiently automate HR tasks. In the above example, a trusted HRO partner could provide a standalone platform that can quickly and accurately calculate payroll.
Employees can be categorized into buckets based on department, wage type and even location, while records remain in a centralized repository.
The final word
HR outsourcing includes many other functions besides payroll. Some solutions include a single platform that handles payroll, onboarding, attendance management and much more.