Employee turnover can put real stress on a company’s finances. According to the U.S. Department of Labor, a poor hiring decision can cost the same as 30% of the potential earnings from your first year. What can human resources do to minimize bad hires, and thus minimize losses? Here are a few tried and true tips when it comes to talent acquisition.
- Offer a structured on-boarding program.
Studies show that new hires who go through a structured on-board training program are 58% more likely to still be with the same company after three years. If you give your workers the skills they need with resources to help them along, they’ll be less likely to experience frustration or alienation early on in their time with the company. That way, they’ll feel more like a part of the team from the start.
- Offer employee recognition programs.
Not only can employee recognition programs result in increased worker happiness, they give your employees a goal to strive towards. Human resources departments would do well to work with upper management in deciding what kinds of rewards are appropriate for different internal teams within the company, and perhaps even if those symbolic rewards include physical or material compensation, too.
- Make the right decision the first time around.
Of course, the golden rule of hiring is to choose the right person for the job. Sometimes, that’s much easier said than done. Under-performance and temperament issues are the two biggest reasons that 22% of all new hires will leave their jobs within the first 45 days. One solution is to hire an outplacement consulting firm or an executive placement agency to help you with your hiring. When all is said and done, spending the money to hire expert and experienced hiring professionals will save your company money by decreasing employee turnover.
If turnover is an issue, you needn’t be embarrassed. Around 57% of all businesses agree that employee retention can be a significant issue. However, the good news is that there are steps you can take to turn the hiring process around. With a little more training, a little more incentive, and perhaps a little more care from the start, your business will be brimming with eager, happy new employees who are in for the long haul.
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