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Learn more about outsourcing services for Phoenix businesses. Watch the video below.
If you want help with some of your operations to focus more on clients or end users, partner with a BPO company in Phoenix.
The service provider manages back-end processes to sustain or improve efficiency at a fraction of the cost. But did you know it can also maintain organizational stability and reduce employee resignations?
This article discusses how lower turnover is possible by outsourcing your Phoenix company’s operations. It also provides a quick view of Arizona’s job market and explains the effects of high attrition.
Read on to learn valuable outsourcing tips.
Arizonans Quitting Jobs, Driving Employer Costs
Phoenix and other cities in Arizona continue to need more employees. The state has one of the nation’s highest labor turnover rates. Financial website WalletHub reports that Arizona placed eighth in quit rates in February 2022.
Arizona’s resignation rate was 3.5% in February 2022. This figure indicates that out of every 1,000 workers, 35 realized they could do better than their current jobs.
A drop in labor force participation contributes to the issue. Participation has fallen from 63.4% in January 2019 to 62.2% in January 2021. The pandemic has changed employees’ personal and career goals, making many more inclined to shift jobs, retire sooner, or pursue other income opportunities.
As many Arizonans voluntarily leave work, Valley companies are vying for employees to sustain normal operations. The tight labor market has driven many businesses to offer candidates improved pay and working conditions. They might also need help to acquire or retain workers since rival employers make better counteroffers than theirs.
High turnover rates can impact your Phoenix company in different ways. Continue reading to learn more.
How a High Turnover Rate Can Harm Your Business
A substantial turnover rate can result in different tangible and indirect consequences for your organization. Your firm loses money, skills, and reputation when it cannot retain workers. Turnover can also generate instability and insecurity within your organization, adversely affecting employee morale, engagement, and efficiency.
Here are some potential outcomes of a high turnover rate:
- Higher labor expenses. You must pay more overtime or hire temporary workers to cover for employees who have quit. You can also incur higher advertising and hiring expenses when regularly looking for new workers.
- Raised insurance costs. When employees quit, the employer is most likely liable for their health insurance until they land another job. The higher the turnover rate, the more expensive the insurance costs are.
- Unstable quality control. New hires need time to navigate and become proficient in their areas. You might have to cope with extra issues and errors until they become experts. Sales and customer satisfaction might temporarily suffer as a result.
- Decreased productivity. Productivity will likely drop while new employees become more familiar with their tasks. When regular employees, especially top performers, leave, you also lose their skills and expertise.
- Weakened customer service. New hires still need to familiarize themselves with your products or services. As such, their assistance level will likely be below customer demands. Expect more complaints from buyers or users during the onboarding phase.
- Costly training. Regularly onboarding new staff hurts your budget and output. Training might take weeks or months, depending on your industry and job difficulty.
Lower Turnover Through Outsourcing for Phoenix Companies
Now you know the business impact of a high turnover rate. Next, we discuss how outsourcing is a practical and effective strategy to reduce it. This approach involves delegating some of your back-end operations to a business process outsourcing (BPO) provider.
What is the BPO provider’s contribution to lowering turnover through outsourcing for your Phoenix company?
Improved efficiency and better cost savings are the main advantages of assigning processes to a third-party vendor. When your human and financial capabilities are scarce, subcontracting back-end functions to a BPO company is more feasible than building competency in-house.
Established BPO providers use the latest tools, solutions, and platforms to handle front- and back-office outsourcing. They also have professionals proficient in different technologies, including cloud computing, omnichannel, artificial intelligence (AI), and virtual reality (VR).
Lower turnover can be achieved through outsourcing if Phoenix companies follow these practices.
Decreased Workload to Allow Employees to Show Their Expertise
Workload reduction can lead to lower turnover. Setting numerous deadlines and expectations for your in-house staff negatively affects productivity. It is challenging for the staff to complete innumerable tasks without taking shortcuts and sacrificing performance and quality.
The feeling of being unfulfilled is one of many reasons for employee turnover. Gallup’s 2022 survey discovered that workers are experiencing high rates of disengagement and discontent. Sixty percent of individuals said they were emotionally distant at work, and 19% stated they were unhappy.
In these situations, professionals are compelled to submit subpar work and will be unhappy at being unable to prove their skills. Outsourcing allows you to evenly distribute work and identify the volume of tasks for each person. With a third-party team on their side, your employees can stay calm and collected.
Proper Task Delegation to Maintain High Work Standards
Correct task assignments can lower turnover, especially when outsourcing distributes the workload between the third-party staff and the Phoenix company.
Your internal staff may take on different roles if you run a startup or small business in Phoenix. One employee might be answering phone calls, recording a ledger, and simultaneously receiving and screening applicant resumes.
This arrangement can undermine your staff’s work standards and quality, particularly if they feel obligated to accept responsibilities they have no proficiency or interest in. Assuming two or more positions at once might also lead to burnout in the long run.
Outsourcing allows you to clearly define and assign duties. The strategy also provides access to external personnel. Third-party experts help prevent allocating tasks to internal staff who might not be the right match.
Lower Work Stress for Better Productivity
A more relaxed work environment can translate to lower turnover. You lessen work pressure when tasks are allocated proportionately between outsourced professionals and Phoenix company staff, particularly during peak periods or busy hours.
Outsourcing helps your company deal with spikes in business transactions, customer needs, and requests, especially when short-staffed. A recent poll revealed that 45% of workers feel overworked, understaffed, and under pressure.
However, with an outsourced workforce, the pressure on your employees decreases. They will likely do their duties better when they are in an excellent mental state.
Better Work-life Balance for Higher Employee Satisfaction
Outsourcing for Phoenix companies allows for lower turnover and a healthy balance between employees’ careers and personal lives.
Delegating workload to third-party professionals means your internal staff can meet deadlines at work while still having time for their friends or family. They can celebrate a long work week by cooling off at Sunsplash Waterpark in Mesa or fishing near Tonto National Forest. Employees who experience less stress and can prioritize their well-being are more satisfied and productive.
Additionally, outsourcing lets internal workers prioritize top-level decision-making processes, essential company operations, and duties in which they excel. The BPO provider takes over repetitive tasks and processes beyond your in-house staff’s capability. This strategy enables them to concentrate on their strengths, increasing their satisfaction and efficiency.
Experienced HR Experts to Address Complex Employee Concerns
Access to third-party human resources (HR) experts can lower turnover rates, so consider outsourcing these professionals for your Phoenix company.
Staying compliant can take time because HR rules, standards, and regulations are frequently updated and revised. At the same time, responding to concerns regarding benefits and compensation, pension arrangements, and similar inquiries can consume much of your staff’s time and effort.
Outsourcing allows you to employ knowledgeable and competent HR specialists who can uphold compliance and address challenging questions, sparing you valuable time in research. They can assist you in resolving complex HR concerns that can impact employee morale and perceptions if costly blunders are made.
HR professionals can help you with tedious activities, such as:
- Adhering to labor laws
- Computing salaries within federal and local regulations
- Developing employee policies and guidelines
- Building and promoting a diverse work environment
- Laying out staff compensation programs
- Evaluating competitive benefit choices
Proficient in Best Practices to Mitigate Staff Churn Rate
Effective employment and work measures, policies, and procedures can reduce turnover rates. Outsourcing partners use proven strategies to minimize employee resignations, maintain work harmony, and promote high morale for Phoenix companies.
Third-party providers follow best practices to lower turnover rates. They can help their clients implement the following measures within their organizations:
- Reward and appreciate workers. BPO providers regularly show verbal or written appreciation for deserving or commendable employees to put their resignation plans on hold. Outsourced HR professionals provide positive but honest feedback, making team members feel more valued and recognized.
- Retrain and enhance skills. Service providers offer opportunities for more staff development, leading to lower turnover levels. Workers are interested in upskilling and education that will help them improve or learn unfamiliar skills. Some prefer better training over a salary raise.
- Provide flexibility. Flexible work options can lower turnover rates and boost efficiency, making outsourcing a viable strategy for your Phoenix company. Remote work and flexible shifts are some options, enabling staff to perform duties from their preferred locations at any time based on a standard number of hours.
Stronger Work Environment for Higher Staff Retention
Lower turnover rates are possible by enhancing company culture through outsourcing. The experience of any Phoenix company employee is determined by the work environment’s common beliefs, standards, and practices.
One of the most essential factors influencing employee retention is company culture. It is inversely proportional to the turnover rate. The stronger the company culture, the lower the staff churn rate, and vice versa.
Phoenix businesses comprise small- and medium-sized enterprises (SMEs) offering products and services to its increasing population. Many HR departments in SMEs are overwhelmed with different areas of company culture, adding to staff discontent and turnover.
Your in-house HR team might need more time and effort to conduct employee engagement programs, offer communication opportunities, gather and examine worker feedback and opinions, and build firm relations.
A service provider with HR expertise can help your internal team improve company culture and the workplace environment, lowering turnover rates and increasing retention through outsourcing for your Phoenix company.
More Non-monetary Perks for Happier Employees
More comprehensive employee benefits, such as better medical insurance, can contribute to lower turnover rates and are attainable through outsourcing for Phoenix companies. Staff with access to high-quality non-monetary incentives will think twice about leaving your organization.
Many working Arizonans seek employer-sponsored health coverage as the state’s aging population is rising. The U.S. Census Bureau reports that Phoenix’s populace has grown and gotten older, from 4.2 million in 2010 to 4.8 million in 2020, with 16.6% aged 65 and above.
The BPO partner can help you take advantage of better non-monetary perks through effective benefits administration. As such, your employees can enjoy first-rate benefits, leading to lower turnover rates and increased morale. So, consider outsourcing your Phoenix company.
Tips for Choosing the Ideal BPO Company
Consider these five helpful points to lower turnover by finding the right outsourcing partner for your Phoenix company:
- Proper size. If you are running a small business in Downtown Phoenix, choose an offshore outsourcing company that is the correct size for your staff headcount. Avoid big companies since a service provider at the same level can focus more on your processes. A more prominent partner tends to concentrate on higher-value clients.
- Vast industry expertise. Hire a BPO provider with in-depth knowledge of your industry. When a third-party vendor fully understands your field’s particular difficulties, developments, and prospects, it delivers better services and solutions. This will help improve the return on investment (ROI) of outsourcing in your Phoenix business.
- Different services. Opt for a third-party vendor that can provide a wide range of services, including contact as a service (CCaaS) solutions. Getting all the outsourced services from a single BPO company can be more convenient than subcontracting them separately to two or more vendors.
- Impressive credentials. Pick a BPO provider with credentials and accreditations that show their knowledge and expertise. Certifications from industry and academic institutions demonstrate their credibility. An example is Arizona State University’s Society for Human Resource Management-Certified Professionals.
- Excellent track record. Request references from possible BPO partners, which you can verify afterward. To learn more about your candidates, look for unbiased online reviews.
The Bottom Line
Outsourcing provides different services from which you can benefit. This business model keeps gaining traction because of its proven success.
But it is not without potential risks. While outsourcing can improve staff stability, morale, and productivity, it poses some disadvantages. What matters is maximizing the advantages and minimizing the possible issues for a positive result.
Additionally, knowing about the impact of a high staff churn rate on your company is vital to making better decisions.
Let’s connect if you want to learn more about lowering employee turnover through outsourcing for your Phoenix company!
