You’ve spent weeks combing through resumes, calling your short-list of applicants and conducting in-person interviews. Recruiting a winning team is time consuming and stressful. And, it’s a major distraction to the other aspects of your business that could benefit from more attention – crushing your bottom-line.
In addition to the personal stress and lost business opportunities, there’s a measurable cost to recruiting a high-quality workforce. Research shows that this cost varies based on the type of position:
Low-skilled, high-turnover positions cost companies 16% of their annual salary when they need to be replaced.
A mid-level manager earning around $40,000 per year would cost the company 20% of their annual salary to replace.
The cost of replacing a high-level executive or other critical team member can exceed 213% of their annual salary.
The key takeaway here is that the more skilled your labor force, the more expensive it becomes to recruit, screen and train their replacement. Hanging onto quality members of your team is a fundamental aspect of reducing operating costs for your company.
Thankfully, there are powerful tools available to companies that want to improve the employee experience and reduce costly turnover.
1. Make it easier for negative employees to leave
This might sound counterintuitive, but one of the top reasons good employees leave is because you’ve surrounded them with toxic people that do not believe in the mission behind your company.
With the wrong people, an office can feel more like a prison than an opportunity to earn an income and achieve personal ambitions.
This is one reason that Jeff Bezos, the Founder and CEO of Amazon, is willing to pay employees to leave – up to $5000. The method behind the madness is simple: If you’re just sticking it out until your next paycheck, and you hate your job, your negative attitude oozes out into the workforce and the customer experience suffers.
Negative, disenchanted employees are a cancer that can infect your labor force and cause massive issues. It’s cheaper to fund their exit, instead of suffering the consequences of keeping them around.
2. Take advantage of cloud-based tools to streamline onboarding
It costs companies thousands of dollars to train and properly enroll new employees. The onboarding process is the first experience your new team member will have with your company. So far, your recruitment and interviewing teams have talked the talk, but will your leadership and human resources department walk the walk?
Here are a few HR tools you can use to streamline the process and help your newest team members experience a fast, painless transition into your workforce:
The Smart Pension platform ensures companies with workforces in the UK are fully compliant with pension scheme requirements. Failure to competently provide employees with critical information can result in substantial fines. This tool helps you avoid those fines, without burdening your new hire.
Cloud-based learning platforms can assist your team in quickly getting up-to-speed, and then staying ahead of the competition. Professional development and opportunities to learn new skills are an important factor in employee satisfaction.
Today’s workforce is truly global. It’s critical that your entire organization is operating from the same sheet of music. You can utilize cloud-based HR management systems to better communicate a consistent corporate vision and a set of policies customized to the locations where your teams call home.
3. Focus on building a team that shares your core values
Remember how I mentioned Amazon’s focus on removing toxic employees from the company? You can avoid needless hiring and firing by simply tweaking your recruitment process.
One of the most effective ways to keep millennials engaged at work is by creating a company culture that aligns with their values – giving them a sense of purpose that matches up with your corporate vision. According to a study by Deloitte, 70% of millennials feel that their personal values are shared by the organizations for which they work.
Do you think they got this feeling from the first company they hired on with after college? No. There’s a reason that employees jump ship – especially millennials. They’re looking for someplace to work that shares their values – and I’m not talking about those motivational posters up on the wall.
At every stage of your recruitment and onboarding process, ensure your new hires understand that social and moral values of your organization. This isn’t about evangelizing or preaching. Those are just words.
Instead, focus your marketing, customer service and product development strategies around the values that matter to your culture. There are a few ways to do this, without breaking the bank:
Allow employees to donate time to their favorite causes. Paid volunteering time is a great way to show your teams that you give back to the causes they care about.
Empower your HR department and leadership teams to initiate diversity and inclusion initiatives. These are designed to ensure everyone feels welcome.
If you’re mindful and focused about aligning your actions with your shared corporate values, you’ll have much less turnover. And you’ll do a better job of attracting the employees that will dig in and help your company prosper.