Elevating Employee Experience with EOR & PEO Services
Author:
Clarisa Wong
Published:
November 23, 2023
Last Update:
October 23, 2024
The nature of work and how it is arranged today has now shifted to meet a brand new criteria: the employee experience.
That means a new possible organizational output and achievements that is employee-centric and revolves around the empowerment and engagement of employees. Organizations that cater to and invest in employee experience can improve work productivity within a safe work environment, healthy peer competition and an overall positive team building as well as management atmosphere.
And because team morale is high, issues such as employee absenteeism is lower, and top talent can be retained – leading to the building of a productive and efficient task force that prevents repercussions and losses1.
What makes a good employee experience are key components that include inclusive leadership and employee wellbeing.
Inclusive leadership involves being able to actively seek out and consider various perspectives before coming to an informed decision during collaboration, and employees with inclusive managers report higher levels of commitment and engagement, as well as a higher perception of support2.
This comes in close association with the notion of employee wellbeing that is taken seriously; a 2021 Employee Experience Survey by WTW concluded that 6 out of 10 organizations cited a need to prioritize employee wellbeing as an important benchmark to enhance employee experience3 – demonstrating the significance of having a work culture that is in alignment with employees’ best interest and growth.
In the era of remote work, it is important to note that employees today have a different set of requirements that satisfy their employee experience within a company. Future Forum’s Remote Employee Experience Index data has revealed that work-life balance and satisfaction with working arrangements are key elements of a successful remote working experience for employees, with 25.7% of respondents agreeing to the former statistic while 20.1% are skewed towards the latter data4.
Productivity is essentially tied to a good employee experience: remote employees are 28% more productive and 46% more engaged in their work when they experience a positive working environment. Incidentally, companies that provide high remote employee experience acquire 25% higher profits and have 37% lower turnover rates5.
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Seamless onboarding with EOR services
An Employer of Record (EOR) enables companies to recruit employees overseas without opening a local entity in a country. So how does it affect your employees’ experience?
For one, there can be challenges when an organization needs to hire foreign employees, and employing an EOR that can assist in the hiring process is vital to ensure a good employee experience. One of the Employer of Record benefits is ensuring a smooth onboarding process for your employees. A great onboarding experience is crucial to make a great first impression on new hires, as 69% of employees are more likely to stay within an organization for at least 3 years if they had a great onboarding experience6.
Having an EOR that provides a streamlined onboarding experience to your new employees boosts employee productivity by up to 50% more7, as the experience could serve as a source of motivation that lifts morale for better work output.
Sarah Wetzel, Director of Human Resources at Engage:BDR once quoted: “I truly believe that onboarding is an art. Each new employee brings with them a potential to achieve and succeed. To lose the energy of a new hire through poor onboarding is an opportunity lost.” It is of no minor importance that your new employee finds it easy to sign required documents, receive salary or proper benefit packages in time, and be part of a healthy and positive working environment or arrangement – all these points to a great onboarding experience that starts a very positive employee-employer relationship, in which a trusted EOR service can help to provide.
Besides an amazing onboarding experience, EOR services can help to provide improved pay and benefits packages. Taking over the responsibilities of paying your employees, an EOR can assist in meeting your talent’s expectations of good benefits such as bonuses, reimbursements, insurance, leaves, and many more – including a salary that is in line with the current market in the country8.
And because an EOR service provider understands the importance of a proper and tailored onboarding process that suits the unique needs of each employee and the local market, they can also offer personalized and localized HR support that could address individual concerns with their local expertise. Employees can receive support and assistance regarding work permits, visa applications, or even cultural norms and business practices that they are not familiar with – as the EOR service provider can help them navigate through the complexities of their new working environment9.
Better talent retention with PEO services
Other than the EOR, what is a PEO company, you may ask?
PEO stands for Professional Employment Organizations; one that allows companies to outsource HR functions such as employee benefits, taxes and payroll, risk management, and many more.
PEO services allow for an enhanced employee experience by offering comprehensive professional development and leadership training to employees. Customized employee development and leadership programs can help employees feel more invested by their employers – and therefore, will be more engaged and motivated to invest their time back into the organization.
Small businesses and lean start-ups that have shorter deadlines or time resources can especially benefit from this, as a PEO service provider can help to tailor HR initiatives that meet specific requirements of the business while enabling its leaders to focus on core business growth10.
A study done by the National Association of Professional Employer Organizations (NAPEO) reported that employees of PEO clients scored significantly higher on key measures relating to employee satisfaction such as levels of employee engagement, and their intention to stay with their current employer until retirement11.
With the right talent and a dependable HR structure, employee communication becomes easy and effective; allowing for improvement of morale and increased employee satisfaction12. When these factors are combined together, it makes for better employee experience and engagement, which subsequently leads to better employee retention.
While positive communication is necessary for an organization’s culture to thrive, in reality, communication issues can arise – and this is where a PEO service can help to mediate the differences between management and employees by acting as a neutral party. Through professional and proper handling of grievances or disputes, these issues can be quickly resolved, and restore good communication within the organization13.
Deciding if you should engage in EOR or PEO services? Why not let us assist you with the decision? Find out more about our award-winning EOR and PEO solutions and let your employee experience flourish with us today!
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