The right hire can make all the difference to a company. In the increasingly competitive global marketplace, it is not enough to find someone to fill a vacancy; you have to be able to keep them too. In fact, close to 60% of companies and organizations cite employee retention as a significant business issue for them. Employee turnover can be costly, often resulting in the company spending between 30% and 150% of an employee?s salary. More troubling is the fact that the average cost of a bad hiring decision, according to the U.S. Department of Labor, is as much as 30% of the potential earnings of the first year. So how can you address the problem before it becomes an issue?
Human resources executive recruiters can play a significant role not only in finding the right fit for the job, but in keeping them there. What you may not know, is that even if your employees are not actively seeking a new job, they are often open to new opportunities should they arise. A Jobvite survey found that more than half of employees were. Working with internal human resources, talent acquisition management services can cut down on bad hires and reduce employee turnover. When you consider that as much as 22% of new employees leave their jobs within the first month and a half, the need to ensure that new hires are a right fit is even more imperative.
Core reasons for new employees leaving include temperament issues ? which can be identified during the hiring process if human resources executive recruiters are used ? and poor performance. Performance issues aside, 36% of executives surveyed by Robert Half felt that a poor skills match was the number one factor in a failed hire, while unclear objectives was listed as number two.
Importantly, a structured on-boarding program for new hires can increase the likelihood of them remaining with a company for at least three years by as much as 58%. Worker happiness ? and thus loyalty ? can also be increased through employee recognition programs, as was the case for 86% of those surveyed. Human resources consulting firms can help companies create on-boarding and recognition programs that address employee happiness, identify potential issues, and minimize turnover.