In This Issue:

PEOs: Keeping Turnover Low & Survival High

The National Association of Professional Employer Organizations (NAPEO) recently released its second white paper titled “Professional Employer Organizations: Keeping Turnover Low and Survival High”. The researchers identified the following three key findings:

  • The employee turnover rate for PEO clients is 10 to 14 percentage points lower per year than that of comparable companies, depending on data specification. The average overall employee turnover rate in the United States was approximately 42% per year, based on 2012 data. It is 28 to 32 percent for companies that used PEOs for at least four quarters. While the exact cost of turnover is difficult to estimate, it is clear that the costs of employee turnover are quite significant and that a business that enjoys a higher employee retention rate is in a stronger position to survive and thrive over the long term. A frequently cited estimate based on a “Cost of Turnover” worksheet provided by the Society for Human Resource Management (SHRM) is that costs are roughly 150% of the employee’s salary, which other calculations suggesting it is more than 200% for certain positions, such as managerial and sales jobs.
  • Businesses that use PEOs are approximately 50% less likely to fail (permanently go “out of business”) from one year to the next when compared to similar companies in the population as a whole. The overall business failure rate among private businesses in the United States as a whole is approximately 8% per year, based on 2012 data. It is approximately 4% per year for those companies that used PEOs for at least four quarters. The results are consistent whether companies are compared to expected survival for their industry or for their respective states. Even using the most conservative analytic approach, the business failure rate is 50% lower for businesses using PEOs than for businesses overall.
  • Across all industries, this study shows that there are clear advantages for PEO clients on two of the most fundamental issues faced by any business: retention of employees and continued survival. PEOs significantly decrease employee turnover for their clients, allowing them to retain the knowledge and skills of their employees, while simultaneously reducing direct and indirect turnover-related costs (which are substantial). The fact that PEOs significantly increase the likelihood of client survival is likely a result of PEOs providing a combination of services that makes it possible for businesses to focus on their core areas of expertise.

Click here to download the full white paper.

Non-Profits are Embracing HR

Non-profit organizations are increasingly recognizing that a focus on strong talent leads to stronger output. Their need for greater effectiveness is leading them to invest in Human Resources and focus on the importance of improving and empowering the people within their organizations.

According to XpertHR’s recent report, “HR Staffing, Costs and Structures in the Nonprofit Sector”, almost 50% of the 260 organizations surveyed responded that their human resources department’s influence had increased in the past year and none reported a decrease in HR’s workload.

Historically, non-profit organizations have tended to focus on programs, fundraising, and finance. However, they are now realizing that their competitive advantage is in their culture and in the talent they hire, and that the talent they have in place can make the difference between sustaining and not being able to continue with their mission.

An organization’s most important asset is its talent, and working to create a culture with intelligent and strategic talent practices that will benefit the organization’s outcomes, people, retention and overall performance. As most non-profits have a specific mission that “flows through the whole organization”, HR can play a critical role in creating and sustaining a competent HR strategy. People are at the core of most non-profits – they rely on mission-driven people to advance the work and programs – and so it’s critical that HR ensures the people are well-positioned to have maximum impact.

What’s important is that HR continues to measure its contribution and impact to an organization so that there can be continued investment. As HR approaches the function in a strategic way, and continues to add value to the strategic direction of an organization, the organization is going to be more likely to invest in it.

If you are interested in learning more about establishing or enhancing your own HR or human capital management strategy, please contact Jena Judd, HR Business Partner at 443-321-7708 or

Short Walks Can Reverse Ill Effects of Sitting

Short walking breaks could reverse the adverse effects of prolonged sitting, according to a recent study. Researchers from Indiana University found that three easy 5 minute walks can reverse harm caused to leg arteries during three hours of prolonged sitting.

Sitting for long periods of time, like many people do daily at their jobs, is associated with risk factors such as higher cholesterol levels and greater waist circumference that can lead to cardiovascular and metabolic disease, researchers said. When people sit, slack muscles do not contract to effectively pump blood to the heart. Blood can pool in the legs and affect the endothelial function of arteries, or the ability of blood vessels to expand from increased blood flow.

For the study, researchers conducted two trials. The first trial involved 11 non-obese healthy men between the ages of 20-35 who participated in two randomized trials. In one trial they sat for three hours without moving their legs. In the second trial, the men sat during a three-hour period but also walked on a treadmill for 5 minutes at a speed of 2 mph at the 30-minute mark. Researches used a blood pressure cuff and ultrasound technology to measure the functionality of the femoral artery at baseline and again at the one-, two-, and three-hour mark in both trials.

The research team was able to demonstrate that during a three-hour period, the flow-mediated dilation, or the expansion of the arteries as a result of increased blood flow, of the main artery in the legs was impaired by as much as 50% after just one hour. The study participants who walked for five minutes each hour of sitting saw their arterial function stay the same – it did not drop throughout the three-hour period. Researchers attribute this to the increase in muscle activity and blood flow.

The study was recently published in the journal Medicine & Science in Sports & Exercise.

How Much Pay to Feel Successful?

According to a recent survey by CareerBuilder, a majority of Americans say they are not satisfied with their current salaries. However, there does seem to be a tipping point.

Overall, 65% of full-time US workers said they do not currently earn their desired salary, while 35% do.

But how much money do people need to earn to feel content with their pay? A majority of those in the $75,000 to $100,000 income range and up said they earn their desired salary. In addition, 39% of men say they currently earn their desired salary, compared with 30% of women.

The survey supports past research suggesting that the $75,000 threshold is particularly significant, as this level allows households in most areas of the country to not only get by, but enjoy an ideal lifestyle and a secure future, said Rosemary Haefner, vice president of human resources at CareerBuilder.

Despite the fact nearly two-thirds of workers aren’t yet satisfied with their earnings, most feel they can be successful in their careers without earning large paychecks. In fact, more than half (55%) said they can feel successful making less than $70,000.

The original article can be found, in full, on the SHRM website.

Did You Know?

On Wednesday, October 8th, we held our 2nd Annual Flu Shot Clinic! Each year we are getting bigger and better – this year we were able to accept payment by cash and credit card AND Wegmans Pharmacy was able to bill our participants’ insurance directly! If you weren’t able to make it this year, be on the lookout for next year’s clinic!