Four Approaches To Reducing The Cost Of Employee Turnover

Employee turnover is a simple fact of doing business. No matter what the size of your company, employee turnover is going to happen. For large corporations, employee turnover is easier to manage given the size of their HR divisions. However, for small to mid-sized companies, employee turnover can prove costly and time-consuming. In response to this challenge, Total HR Management offers four approaches to reducing employee turnover and reducing the expense of employee turnover.

Understanding the Cost of Employee Turnover

employee turnover

Is the Cost of Employee Turnover Too High?

The reasons for employee turnover are multiple. In fact, they often turn out to be a combination of involuntary or voluntary, healthy or unhealthy. Reducing employee turnover requires human resources expertise.

Such staffing experience can help reveal the causes of the problems being faced. Given the different reasons behind employee turnover and the contextual questions involved with specific industries, Total HR Management’s staffing experience has shown that these causes can vary dramatically.

Employee turnover has both a quantifiable impact as well as a qualitative effect on your company. From a quantifiable perspective, the impact includes the time it takes to rehire and train new employees. Also, let’s not discount the need to pay overtime to other employees to cover any gaps.

Moreover, the heightened potential for both workers’ compensation and unemployment claims is a real danger. From a qualitative perspective, a company should never ignore any potential damage that employee turnover can do to existing client, customer, and even vendor relationships. Also, employee turnover can have a qualitative negative impact on employee morale.

Even with the benefit of recruitment and selection support that comes with working with a PEO, employee turnover still drains time and costs money. The simple integration of a new employee into a specific job as well as your company culture as a whole takes time. As a result, your company needs practical approaches to managing employee turnover.

4 Approaches to Managing Employee Turnover

1) Reducing Employee Turnover Impact on Clients and Vendors

Beyond rehiring and training, employers need to understand how a new employee impacts key clients and vendors. Rather than ignore this challenge, Total HR Management has found that it’s better in most cases to address it directly. If possible, in-person communication tends to be the best option. If such face-to-face contact is not possible, online Skype-like meetings or personalized calls can be useful as well.

After all, when it comes to employee turnover, losing vendors and client attrition are the truly negative scenarios. By addressing this problem upfront, a potential hazard can be transformed into a favorable opportunity. Both clients and vendors respond when such information is provided promptly.

2) Understanding and Using Employee Turnover Data

Although keeping track of employee turnover data can seem burdensome, there is an answer to this problem. By working with a professional employer organization like Total HR Management, your small to mid-sized company gains access to Human Resource Information System (HRIS) platform. Operated by a certified Professional in Human Resources (PHR), such a platform can compile and produce detailed employee turnover reports on a regular basis. By understanding the latest data, you can succeed in reducing the cost to your company of employee turnover.

3) Utilizing Transparency to Maintain Company Morale

Employee turnover can have a negative impact on the atmosphere of your company’s workplace and employee morale across the board. Losing a valuable employee also means the loss of personal relationships and a part of your company’s overall team. To reduce the effect of employee turnover on company morale, Total HR believes in transparency. Employee turnover should not be treated like a dirty little secret. Instead, by being upfront about what is happening, you can reduce uncertainty among your staff.

As a company owner or managing executive, you need to provide reassurance by emphasizing the ongoing stability of the company. Above all, you want to avoid blowing up the problem into a turnover cycle. Such a cycle happens when the loss of one employee triggers the loss of multiple employees like dominoes falling. By being transparent and supportive, such a hazard can be avoided.

4) Taking Advantage of Recruitment and Selection Techniques

As an expert in effective recruitment and selection techniques, Total HR Management has learned the importance of helping our client companies get it right the first time. If you hire the right people for the job the first time, you can significantly reduce involuntary employee turnover. The key is to balance recruitment with selection techniques, so the number of job applicants leads to quality options.

Naturally, even the best recruitment and selection techniques cannot promise anything close to zero involuntary employee turnover. However, such techniques can reduce an existing employee turnover problem by finding new potential hires that are a proper fit for your small to mid-sized company. When something fits, it tends to stay in place.

Total HR Management Can Help With Employee Turnover

As a professional employer organization, Total HR Management can help your company manage the cost of employee turnover. We understand how employee turnover can negatively affect your business, and we have experiencing helping our client companies address this challenge. To learn how we can help your small to mid-sized business reduce the cost of HR challenges across the board, please call (800) 975-5128 today.


No Legal Advice Intended: This blog includes information about legal issues and legal questions. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.


Three Mistaken Reasons Small Business Owners Resist PEO Support

Why do so many small business owners resist PEO support for their companies? In the majority of cases, working with a professional employer organization is a viable solution that solves numerous HR challenges and problems.  Nevertheless, these small business owners have entrenched objections to working with a PEO. A major issue, however, is that their mistaken reasons for rejecting PEO support often hurt, rather than help their business.

PEO Support Helps Small Business Owners

PEO Support

Small Business Owners Resist PEO Support

As a professional employer organization, Total HR Management has battled adverse implications of the word “outsourcing” for many years. Unlike negative versions of outsourcing that take jobs away from American workers and hurt the economy, HR outsourcing is the exact opposite. Rather than taking away jobs, HR outsourcing helps small businesses to grow as the business owners suddenly find the time to focus on their bottom line. With PEO support, rather than working in their business, they can work on their business, doing what they do best.

Over the course of growing our business and taking on client companies, Total HR Management has heard the same mistaken objections from small business owners time and time again. Rather than being taken aback by such objections, we have proactive responses that show why the resistance to PEO support is based on incorrect assumptions. Once the problematic logic is revealed and an alternative perspective is provided, the resistance melts away. Many of the companies on our current PEO and HR outsourcing services roster initially resisted working with Total HR based on the objections outlined below. Today, these companies are satisfied clients that have seen their profit margins grow.

Three Mistaken Reasons Not To Access PEO Support

1. “We don’t need all of those services.”

Unlike many professional employer organizations, Total HR does not offer the same package for every business. Rather, we tailor our HR services to meet the specific needs of our client companies. If your company already has a long-term payroll provider with a positive track record, then we don’t offer our payroll services as part of the package. However, we still provide access to excellent benefits administration offerings and EPLI services if that is what’s missing from your small business HR package. In other words, we tailor our services package to reflect the needs of your company.

2. “We’re too small to work with a PEO.”

This mistaken reason for rejecting PEO support is all too common. Some small business owners think they are too small to work with a professional employer organization. They believe that since they are not a bigger client, they will be treated like a second-class citizen by the PEO. Nothing could be further from the truth when it comes to working with Total HR Management. Even if your business has less than ten employees, we are happy to work with you and provide the same quality services that we provide to our larger clients. If you are worried about not being able to access quality benefits administration and EPLI coverage, there is no need to stress. A smart PEO will make you part of the greater employee pool, giving you the same options and the same service opportunities as the rest of the company clients on the PEO roster.

2. “I’m scared of losing control of my business.”

The last thing that Total HR Management wants to do with any of our company clients is to take control of their companies. In truth, our goal is to empower the business owners that we work with by giving them the freedom to do what they do best. We want to handle the tedious HR bureaucracy while you focus on growing your business. Ultimately, every HR decision being made will be approved in advance by you. In fact, no aspect of the daily functioning of your business will be hijacked by a PEO.  For example, although we can offer PEO support, both the hiring and termination of employees will always be under your umbrella. When it comes to your business, you will control your company. PEO support is designed to make that process easier and smoother for you. The only thing you will lose is all those wasted hours you spent trying to manage everything on your own.

Total HR Management Offers PEO Support

We understand the needs of small business owners. We provide PEO support to help your small business succeed. By taking care of the HR functions and putting that tedious work in the hands of experienced professionals, you gain the time to work on your business. At the same time, you will know that regulatory compliance and the administration of human resources is being expertly covered. Don’t let mistaken reasons keep you from accessing the PEO support you need. To learn how we can help your small business succeed, please call (800) 975-5128 today.


No Legal Advice Intended: This blog includes information about legal issues and legal questions. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.

Raising Employee Productivity By Improving The Workplace

Raising employee productivity is a goal of every company owner. After all, raising employee productivity tends to go hand-in-hand with increasing profit margins that help build a company’s bottom line. As a professional employer organization (PEO), Total HR Management has found a direct connection between improving the workplace and raising employee productivity. By improving the workplace, an employer can help productive employees become even more productive by raising the happiness quotient and making those employees feel truly valued.

Generational Perspectives & Raising Employee Productivity

raising employee productivity

Raising Employee Productivity

Whether an employer is working with Generation Z employees, Millennial employees, or Generation X employees, they all have the same essential perspective. As employees, they want to know that their employers believe in their work and the evolution of their careers. Indeed, they are willing to sacrifice and work hard if they see a path leading to a positive outcome.

As an employer, a key to raising employee productivity is to create a workplace where such employees can see this path. Moreover, by making a few simple changes, employers can institute this zeitgeist as part of the company’s culture. Once such changes are made, the ball will keep rolling toward the goal of long-term, sustainable success.

4 Approaches to Raising Employee Productivity

1) Reduce the Meetings & Trust Employees

There is a good argument to make that every office nationwide has too many meetings that waste time. Every new stage of a project does not require another meeting. Trust employees to make the right choices. If they have questions, let employees know that the door is open and emails are welcome as well. Often, a team email is a much better methodology for scheduling another meeting. By creating emails with differing levels of priority, the most important messages will be heeded and focused on. If employees have questions, they can ask them individually. Other employees can focus on the work at hand. Raising employee productivity and cutting down on unneeded meetings goes hand-in-hand with a company’s future success.

 2) Acknowledge and Reward Individual Success

The lack of communication in a workplace should never affect the acknowledgment of individual success. When an employee succeeds, such success should be noted and rewarded. By making the other employees aware of such success, an employer is showing that success is important to the company. Raising employee productivity will follow because employees will understand that success is rewarded. Otherwise, your best employees will actively look for greener pastures if their hard work is ignored. Moreover, employee comradery rises when an employer lets the office know that someone has done a good job. It truly means something to employees when good work is recognized on a public level.

3) Provide Employee Benefits that are Wanted and Needed

By working with a professional employer organization, a small to mid-sized business accesses the ability to offer employee benefits administration offerings that resemble the best of the big corporations. Too many companies offer cut-rate insurance packages that do not cover what is wanted or needed by employees. Instead, by becoming part of the negotiating pool of a professional employer organization that includes the employees of all the client companies, a small to mid-sized employer accesses a much more powerful negotiating base. With such a negotiating base, an employer can provide excellent employee benefits and insurance offerings at a cost that works for employees. Such positive services and employee benefits bolster the goal of raising employee productivity.

4) Help Employees Understand What is Expected

As a professional employer organization, Total HR Management has worked with too many small to mid-sized businesses that came to the fold with the belief that they didn’t need an employee handbook. After becoming company clients, they were convinced by HR managers that an employee handbook made good business sense. As a result, by allowing professionals in human resources help them create and continue to update an employee handbook, they have provided a valuable resource to their employees. An employee handbook helps a company’s employees understand what is expected. By understanding what is expected and the basic guidelines that define the company, unnecessary problems are avoided. Raising employee productivity is that much easier when the road is smooth because such unneeded difficulties do not arise.  After all, nobody ever wants to be punished for not knowing something they were never told. A professional employee handbook, signed by the employee during onboarding, helps a company define expectations and guidelines from day one.

Total HR Management Can Help Raise Employee Productivity

Total HR Management understands the importance of raising employee productivity. We can help a small to mid-sized company improve the workplace significantly, thus raising employee productivity and improving a company’s bottom line. To learn how we can help, please call (800) 975-5128 today to set-up an HR audit.


No Legal Advice Intended: This blog includes information about legal issues and legal questions. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.









Successful Entrepreneurs And PEO Support Reflect Each Other

Successful entrepreneurs understand the importance of PEO support. A professional employer organization helps an entrepreneur do what they do best: Start and grow a new business. Through PEO support, an entrepreneur can avoid the pitfalls that often lead to the failure of many emerging companies.

By covering the HR challenges and navigating the complex bureaucracy of running a business, PEO support helps an entrepreneur focus on the namely challenge that faces every new company. Namely, building their business by establishing a market, building a successful brand, and defining a reputation for real success.

PEO Support Reflects The Traits Of A Successful Entrepreneur

peo support

PEO Support Helps Entrepreneurs To Succeed

A key trait of every successful entrepreneur is that they have a plan for their company’s long-term success. By a plan, we mean quite a bit more than an initial business plan that helps raise the first round of funding. Beyond this business plan, they have a vision for where they want to take their new company and how they believe it will succeed in both the short-term and the long-term.

In the same way, a professional employer organization like Total HR Management has a plan about how we help our client companies succeed. Rather than posture like a one-stop shop where every business is offered the same redundant package of HR services, we tailor our service programs to meet the needs of each company.

Like a successful entrepreneur, we understand that what a small business requires can be different from what a mid-sized business needs. We also know that the needs of a specific business depend on their industry and the current marketplace. As a result, our tailored services become a recipe for ongoing success as our client companies evolve and continue to grow.

PEO Support = A Roadmap for Success

Entrepreneurs understand that they don’t have to reinvent the wheel to succeed. In truth, they embrace the lessons learned from their precursors and seek out mentors to help with their new business. Nobody succeeds solely on their own and every successful business owner has asked for advice at one time or another.

When you look at sports, even Michael Jordan, arguably the greatest basketball player in the history of the game, relied on both his coach and his trainers to help him succeed when he played the game. A successful entrepreneur follows the same path, finding mentors that he or she can go to on a regular basis for advice and support. A perfect example in the business world is the immensely profitable and well-known connection between Bill Gates and Warren Buffett.

In the same light, a professional employer organization never rests on its laurels. The HR managers at Total HR continue to evolve their skills, keeping up with both the latest HR updates as well as technological innovations in the industry. In order to provide the best PEO services to our clients, we need to rely on industry experts to keep us on the cutting edge.

Following the updates of the Society for Human Resource Management (SHRM) and keeping in touch with PEO industry leaders, we make sure to learn about any challenges in advance. We keep your company up to date with the latest challenges long before they affect your business. Like successful entrepreneurs, we don’t try to do it alone. Rather, PEO support is born of staying abreast of whatever comes next.

Entrepreneurs and PEOs Value Employees

Both successful entrepreneurs and PEOs keep their finger on the pulse of their employees. A successful entrepreneur pays attention to the opinions and perspectives of the employees they have chosen to hire. When employees feel valued, they become loyal to an emerging company.

As a result, valued employees stick around and help a new business endure and thrive, even through the tough times that are sure to come. Reality is not a cakewalk, and a successful entrepreneur understands that by giving their employees a personal stake in the success of their business, those employees will help that business prosper in both the short-term and the long-term.

The goal of a capable professional employer organization regarding the employees of their company clients reflects the goals of a successful entrepreneur. By offering top-flight benefits and helping to build a user-friendly company culture, a PEO makes the employees of an emerging company feel truly valued. Rather than looking for a quote-unquote “secure” job at a big corporation, a PEO helps small to mid-sized business owners recruit and select the very top talent in their industry. A focus of PEO support is to help entrepreneurs transform their emerging business into a preferred destination for the top talent in their industry.

Be A Successful Entrepreneur by Accessing PEO Support

If you want to be a successful entrepreneur, please don’t try to reinvent the wheel and do everything on your own. Rather, access PEO support to help your company succeed. PEO support reflects the very best of what help makes an entrepreneurial venture successful. By dotting the i’s and crossing the t’s of required HR services, PEO support helps an entrepreneur focus on the business of their emerging business.

To learn more about how Total HR Management can help you succeed as an entrepreneur, please contact us today. Take an essential step to entrepreneurial success and call (800) 975-5128 today.


No Legal Advice Intended: This blog includes information about legal issues and legal questions. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.

The Challenge Of The Hiring Process For Small Business Owners

All aspects of the hiring process, from recruitment and selection to onboarding, are more challenging for small business owners. Unlike big corporations and even mid-sized companies, small business owners lack the workforce needed to optimize the hiring process. As a result, working with a professional employer organization allows a small business owner to improve the hiring process while receiving many additional benefits as well.

Small Businesses and The Hiring Process

hiring process, PEO

Small Business Hiring Process

According to recent research, an impressive number of new employees in the United States in the past year were hired by small businesses. Over 45% of new hires were the result of small businesses growing and evolving. Such a statistic places the importance of small business owners to the American economy in proper perspective. As a professional employer organization (PEO), Total HR Management is proud to help small businesses nationwide improve their staffing, hiring, and recruitment and selection capabilities.

Still, despite this remarkable growth, small business owners face many challenges when it comes to hiring. Compared to a majority of mid-sized businesses and practically all large corporations, it’s much harder for small businesses to handle hiring responsibilities. When any business needs to hire new employees, the HR challenges can be time-consuming and a little overwhelming. Rather than lose a night’s sleep over the potential cost, your small business might discover that working with a professional employer organization is the sensible solution.

Hiring Process Challenges for Small Business Owners

Beyond HR regulatory challenges brought on by a combination of federal and state laws, hiring is expensive. Although a small business can hire a recruiter to find the best candidates or pay for advertising, the cost tends to be more than the available budget. Moreover, accessing the available talent and raising awareness of a potential job opening is just the first step. There are a lot more responsibilities to come.

First, a good job offering can lead to a flood of resumés. If you recruit correctly, then selection can be a major challenge.  Do you have the time to spend sifting that flood of resumés, then arranging interviews with the best candidates?

The simple truth for the vast majority of small businesses is that there is no person on staff adequately trained in HR best practices. Lacking HR experience and an understanding of employment law, the hiring process can be awkward at best and even threaten the security of your company at worst. In truth, not taking the time to hire correctly opens the door to unnecessary difficulties.

Beyond the challenge of recruitment and selection, onboarding employees is far from a polished hiring process for most small companies. Even when you find the right candidate, your small company probably lacks a systematic and efficient process to bring on a new hire. If the top talent experiences such initial disorganization, they might not follow through with the hiring process. The last thing a small company needs is to lose a great recruit and potential new employee for such avoidable reasons.

Transforming A Difficult Hiring Process

Total HR Management sympathizes with small business owners when they face the difficulty of the hiring process. There is no reason why recruitment and selection should be so hard. Once hired, a new employee should be on-boarded quickly, then positively acclimated to your organization and the company culture. Moreover, HR fines and lawsuits can be avoided if a small business owner is willing to work with a professional employer organization. As a co-employer, we take on the challenging HR tasks while allowing you to do what you do best: grow the business of your business.

By working with a PEO like Total HR Management, the hiring process becomes a real positive asset for your business. From recruiting to onboarding, we have best practices in place to help your business. Efficient and cost-effective, a PEO can also offer your employees outstanding benefits that compete with the largest corporations in America. Such benefit offerings help with recruitment and selection by becoming a lure to top talent. In your business, the top talent wants the perks of a large corporation combined with the freedom of a small company. We can help make this happen.

Total HR Management Can Help

To learn more about how Total HR Management can optimize your small company’s hiring process, please contact us today. Take the first step to optimizing your small company’s hiring process and call (800) 975-5128 today to set-up an HR audit.


No Legal Advice Intended: This blog includes information about legal issues and legal questions. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.

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