Topic Outsourcing HR / PEO,
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Most employees do not trust human resources. Though HR is a crucial part of employee management, most organizations face a general crisis of trust. According to this survey, 77% of people did not have confidence in HR and only 23% trusted it.
For as crucial as HR is to a functioning business, this level of distrust is problematic. However, HR outsourcing can help companies build trust with their staff by giving your internal team the time and attention to focus on supporting your staff.
However, companies need to enact total transparency and communicate clearly when transitioning to an HR outsourcer – or you could worsen the situation. The success of HR Outsourcing depends on whether employees can learn to trust HR outsourcing companies.
In this post, we focus on how outsourcing HR can help you deal with the employee trust issue. But first, a look at some of the advantages you can accrue from increasing employee trust.
5 Benefits of Improving Employee Trust
A company's workforce is responsible for all the operations, including sales, marketing, and production. You cannot achieve success in any business without trust in and between your employees.
Some of the advantages of increasing employee trust include:
1. Improved Productivity
Everyone's mind is at ease in workplaces where trust exists. When employees feel psychologically secure, they can devote more attention to their work. In addition, they will also be more willing to share new ideas and solutions to challenges in the company because they know their suggestions will be received well.
Employees in such environments exhibit higher productivity, which is good for business and translates to happier employees and an improved bottom line.
2. Higher Morale
If employees feel that no one can help them with their situation, morale generally decreases – or is low to begin with. But in a workplace environment where you give them a chance to be heard and their grievances addressed, your staff will feel better about their work and will have more motivation. They will also feel secure when going through difficult personal moments, so that when the situation improves, they will feel more gratitude to their company.
Draconian HR laws like requiring sick notes or proof of death in cases of bereavement are some of the issues that hurt trust in your company. The best way to ensure a positive culture is by building trust between the HR department and the staff. Let employees feel that they can approach you anytime.
Building trust relies on giving trust – and it’s important that the company takes the first step by trusting their people to do their jobs well. If they feel trusted, they’ll trust the company.
3. Increased Engagement
Employee disengagement may be costing your business a lot. According to Gallup, a company of 10000 employees each earning an average of $50000 loses about $60.3 million annually. A high-trust workplace tends to have better-engaged employees. You won't engage employees in their work if they can't trust their own HR department with their employment issues. Ask yourself whether your employees would come to you to request more tasks when they feel underutilized.
4. Higher Retention
High employee turnover can be costly. Companies need to recruit, hire, and onboard regularly, which is not financially healthy for your business.
But, simply improving the trust between the employees and human resources is enough to raise the employee retention rate. Better engaged and positive employees are more likely to stay with a company for longer because they feel more secure or worry about giving up their great work culture.
5. Lower Litigation Risk
If employees feel they have no recourse within the Human Resource Department, they are more likely to take their issue to a public forum or even a courtroom. In an environment where you nurture trust, employees will not worry about victimization for reporting issues to HR because they trust you will do what is expected.
Building a trusting workplace environment ensures the channels for solving issues in the company are open to all employees, regardless of position. Litigation can cost you in terms of money and reputation.
How HR Outsourcing Resolves the Trust Problem
Outsourcing HR improves the relationship between the HR department and employees and saves your companies on costs and time. By handling the crucial but mundane tasks, your HR staff has more capacity to effectively communicate. If employees feel like the HR department is out of reach, they won’t report issues for fear you will not take any action or they may be victimized. Issues such as sexual harassment and salary issues, can go unresolved and may erupt in the future, resulting in legal battles.
When you outsource HR functions, the service provider provides a portal for employees to submit their issues. They also provide personal assistance from a professional point to employment-related problems.
In addition, when you process employee claims on time, it further increases the employee's trust. The findings of this study on Professional Employer Organizations show that employees are more satisfied if their employer is a PEO. It also found that these employees and clients are more likely to report that:
• Their company shows a commitment to their employees.
• They are more engaged at the workplace.
• Increased intention to stay with their current employer until retirement.
• Employee turnover decreases.
PEOs are experts in HR management. When you partner with them you get access to the latest technology and a wealth of experience in HR management. Since they practice HR best practices, they leave you with happy employees.
