There are numerous benefits to outsourcing your HR to a professional employer organization, or PEO. Reduced costs, improved security, and the assurance of regulatory compliance are just a few such benefits.
Before outsourcing your HR, however, it's important to understand that not all outsourcing partners are created equal. Much of the difference comes down to stylistic choices. There are two major styles of HR partners: people-driven and task-driven. People-driven HR has several distinct advantages over task-driven HR.
What is a task-driven HR partner?
A task-driven HR partner typically focuses on very specific tasks, deadlines, and requirements. While this style of HR is efficient and helps to maintain high standards, it can also be responsible for low morale in an organization as well as low levels of autonomy and creativity.
What is a people-driven HR partner?
People driven HR partners are more focused on making sure that employees within an organization are rewarded for the hard work that they do. This style of HR encourages employees to feel like they're a crucial part of the company, thereby reducing turnover and improving morale throughout the organization.
Below, we have listed five reasons you should consider partnering with a people-driven HR PEO.
1. People-driven HR provides a diagnosis, not a prognosis
Just like in the medical world, the difference between a prognosis and a diagnosis is an important one in the HR world. A prognosis offers a theory as to how a certain treatment may impact the results whereas a diagnosis is an identification of the actual problem.
Task-driven HR is more likely to provide a prognosis, which simply serves as a warning sign that things aren't quite right. While this is useful in its own way, likely trends as a result of the completion of a task or project aren't as useful in HR as a proper diagnosis.
People-driven HR partners are more likely to provide the necessary diagnosis. That is, people-driven HR involves finding out why certain trends are happening and then rectifying the issues by identifying changes that need to happen in the workplace.
2. People-Driven Metrics Are Tied into Task-Driven Ones
Research shows that employees that are satisfied, happy, and engaged are significantly more productive than employees who are disgruntled, detached, and displeased. People-driven HR is more likely to lead to employees who feel valued in the workplace. This means that focusing on people-driven metrics can, in fact, improve task-driven metrics such as productivity and profit.
3. People-Driven Metrics Ensure Better Applicants
According to the Bureau of Labor Statistics, unemployment is at only 3.5% in the US as of November 2019. This means that employees are at an advantage, and organizations are at a disadvantage when it comes to hiring. If you want your organization to be the place where all of the top applicants apply, it is crucial to partner with a people-driven HR partner.
By making sure that your employees are happy, you are sure to become an employer of choice. Everyone wants to work somewhere that they will be happy and not overloaded with work. Potential candidates for employment care about how you treat your current employees. If they aren't satisfied with the way your HR partner has oriented their priorities, they'll take their skills elsewhere.
4. Invest in People, Invest in the Organization
Task-driven metrics are tied directly into your ROI. If task-driven metrics fall, so will your ROI. Basing your HR decisions on task-driven metrics doesn't provide you with an actual solution to a reduced ROI. By using people-driven metrics, you and your HR partner can create a more engaging work environment which will naturally lead to a better ROI.
5. Protect Your Reputation by Protecting Your People
When you focus on employee satisfaction by outsourcing to a people-driven HR partner, your organization avoids becoming infamous for working employees to the bone with no concern for their well being. Many companies have lost significant business and talent over time after having been outed as physically and mentally demanding on their employees.
People-driven HR partners can help your business increase ROI by combining the efficiency of task-driven styles with an ability to diagnose problems and come up with reasonable solutions. PRemployer is proud to offer people-driven HR services. If you'd like to learn more about how we can help your business, contact us today.
