Build Trust With Employees Using a PEO


Building trust by hiring a PEO

As major industries such as manufacturing, hospitality, and health services continue to face a labor shortage, one thing has become crystal clear: employees have more options than ever before when it comes to where they work and who they work for. It doesn’t stop with current employees either. Potential candidates and unemployed people have options and don’t have to settle for any job, they are likely to choose a company that shares their values and beliefs. That is why employers need to be more aware than ever of the perception of their own employees. If you don’t have an established culture of trust, key employees may be on their way out faster than business owners think.

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So, what can employers do to make their workplaces more attractive to current or new talent? And how can they retain the people the employees both new and the ones currently have? Do they have to give employees more money? Jewelry? Snacks? No, it is much more simple than that. According to a recent article in the Harvard Business Review, it all starts with building a foundation of trust.

“It’s time to galvanize around trust and transparency,” the article noted, going on to say that “leaders need to communicate the ‘why’ behind big decisions and act with integrity, courage, and vulnerability.”

Patrick Mortaites, partner and VP at Tampa-based Axis Group, couldn’t agree more.

“Everything starts with the administration,” he said. “The more they can do to create a culture of trust, the better the outlook is for everyone.”

However, many business owners are feeling the stress of simply trying to keep the lights on. And while they may be committed to fostering a positive workplace culture, they may not have the time to focus on making it happen. That’s where hiring a PEO or Professional Employer Organization – can be the difference betweeen establishing a revolving door or a foundation of trust and then some.

A PEO is a single-source provider of integrated business services that allows business owners to outsource their time-consuming HR, payroll, and other employment-related tasks. Plus, because PEOs offer economies of scale by pooling employees from different companies, they can leverage insurance coverage and pricing and give their team members more options when it comes to benefits.

How exactly does hiring a PEO tie back to building trust? For starters, they are experienced in employee management, have a team of HR professionals to establish support and help influence culture, and help provide structure, stability, and security for employees and business owners alike. Here’s one example. Imagine you’re an employee who’s been working at the same company for the past 10 years. During that time, you’ve seen many people come and go, but you feel a sense of loyalty to your organization, so you’ve stuck around. Now that there’s a labor shortage, you’ve been working extra hard and finally, your supervisor has made a new hire in a similar role as yours. “Great!” you think. “Someone is here to take a little work off my plate.”

Elation quickly turns to frustration once you catch wind that this new person who has been at the company for all of five minutes is making considerably more money than you. Your experience at the company has become obviously stressful and the pigeonhole begins. Suddenly, you begin questioning yourself and wondering why you put all your trust in a company that doesn’t seem to value what you bring to the table. I mean heck they are paying this inexperienced newb more than the person who knows what they are doing with the utmost efficiency. The next thing you know, you are packing your box and off to a new opportunity.

“That’s how you lose good people,” Moraites said. “And it costs a lot more to train and replace people than it does to retain them. That’s why it’s important that employers are doing everything in their power to keep their best and brightest.”

This scenario is happening much more frequently at workplaces in the United States. PEOs can go a long way in preventing the above scenario from happening because they provide employers with access to certified HR professionals. These professionals can help set up an annual review system to ensure that employees are being appropriately awarded for their time and tenure. They can also offer guidance in developing salary structures so the companies they’re working with can be competitive when it comes to hiring. Additionally, they can help with benefits administration, training, employee advocacy and so much more.

“The last thing anyone needs is to run into a culture issue,” Moraites said. “PEOs can provide the support employers need to promote the values of trust, transparency, and integrity that today’s employees demand and deserve.”

Wondering how a PEO can help you lay the groundwork for success? The team at Axis is here to help. Contact us today to set up a consultation.



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