September 17, 2020 | By Jason Randall
There are now more Millennial business owners than ever before. According to a recent study from Cargo, Millennials are becoming small business owners faster than any other generation. In an effort to increase efficiency and employee satisfaction, many Millennial business owners are using their funds to outsource HR.
Millennials, also known as members of Generation Y, consist of people born between 1981 and 1996. 60 percent of people in this age range identify as entrepreneurs, and many companies are run by people in this group. As more of these entrepreneurs establish and acquire businesses, it's important to understand what they're doing that's helping them succeed.
In addition to being the most optimistic business owners, Millennials are also the most concerned with keeping employees happy. Company culture is a central element of many Millennials' modus operandi, as they work to maintain a more casual work environment that keeps them both relaxed and engaged. From all-inclusive lounges with every feature imaginable to other contemporary office perks such as food and games, company culture in Millennial-run businesses does well in keeping employees consistently satisfied.
There are several ways you can work to keep your employees happy and show them you care. Some of these steps to create a healthy company culture can include:
If you don't take steps to create a good company culture, you could wind up with unhappy employees who are more likely to leave. Also, if you fail to appreciate their efforts when they do well, they are less likely to turn in consistently good results.
If you can outsource your HR, you can focus more on developing that winning company culture that engages current employees and attracts new hires.
Many people place benefits as a top priority when looking for the ideal place to work. If you think that pay is a primary concern, you might be surprised to find that three out of five job candidates stated that benefits and perks weigh as heavily as wages when it comes to seeking the perfect job.
The biggest issue that you might face when choosing the right benefits package to offer employees is the cost. Unfortunately, competitive benefits are expensive, though they are often worth the money spent if it means increasing employee retention and attracting better hires.
If you want to be able to provide great benefits for your employees without breaking the bank, you may be able to do so with a PEO relationship. When you partner with a PEO, you gain access to their benefits plan, which is negotiated at scale by experts to make it more cost-effective for you.
A recent study from Oxford University's Saïd Business School discovered a proven link between happy employees and productivity, finding that productivity goes up by 13 percent when employees are satisfied.
Not only can outsourcing HR help keep your employees outside of HR more satisfied, but it can also make the work more satisfying for HR employees who no longer have to focus on administrative burdens. Instead, your HR department can spend its time and effort on keeping other employees satisfied, which makes for an overall happy workforce.
Just as employee satisfaction translates into productivity, productivity, in turn, leads to increased profits. A Gallup report recently discovered that work units or businesses that ranked highest on employee engagement benefited from a 21 percent increase in profitability over companies with the least satisfied workforces.
If companies want to boost both satisfaction and productivity to improve their bottom line, they'll do well to follow Millennials' business practices, including the outsourcing of HR. Outsourcing HR work can help contribute to increased satisfaction among all of your employees, leading to more productivity that ultimately increases profits.
The main reason why Millennial business owners are adopting HR outsourcing at a faster pace today is likely because they are more open to new ways of doing business. Younger entrepreneurs aren't glued to old-school traditions, and they're always looking for new ways to succeed.
If you want your business to find success, use some of the strategies that Millennials are using to stay competitive. As you work to keep employees happier with outsourced HR, you'll be able to improve employee engagement and, subsequently, your bottom line.