The average turnover rate across all industries is 15 percent, but in a recent study, 39 percent of employers expressed concern about losing their top talent as the global economy recovers. Always a reality, higher attrition is more of a threat as people are less hesitant to make a move now that businesses are on firmer financial ground.
Successful attrition begins before employees even start working for you. Making the right hiring decision plays a key role in how well an individual will excel at your company, both initially and in the long run. Hiring and training consume a large chunk of your HR budget, so you need a robust strategy that focuses on retention from the first point of contact with a new hire – and even before.
Be Proactive in Hiring
Retention should be an ongoing aspect of your business plan as you maintain communication and build relationships with all potential talent sources.
- Keep track of potential hires, including passive candidates. Use all your contacts including university placement offices, professional associations, personal connections and your staffing agency.
- It pays off. Companies that take an ongoing approach to recruitment score in the top 20 percent of their industries for talent management. In addition, they realize 22 percent greater returns on their sourcing and hiring investments.
- Optimize your in-house talent. Single out superstar employees and make recruitment part of their jobs. Send them back to their alma maters as part of your college hiring efforts and have them post openings on their social media platforms. They are your best ambassadors.
Hire for Retention
As you move through your hiring process, focus on achieving cultural fit as well as skill set matches.
- Keep job descriptions current and specific. Be as transparent as possible in describing the tasks, responsibilities and overall “feel” of a position. If you spot inconsistencies between the candidate’s understanding and yours, send up a red flag.
- Actively listen to candidates. Ensure that their goals, vision and values align with those of your company.
- Never cut corners. It may be tempting to skip time-consuming steps such as thoroughly vetting candidates or checking references. This can come back to haunt you later on. Pay special attention to a candidate’s past history of job turnovers.
Build Your Brand
Develop an employment brand that says your company is a great place to work. Build your reputation as an organization where employees can grow their careers while maintaining a healthy work/life balance.
- Word of mouth is incredibly powerful. Employees talk about their company outside of work and are active on social networks. If they’re dissatisfied, others will know about it. If a friend expresses disappointment in a product, do you run out and buy it?
- Gather suggestions from your workforce. Ask for input on how to improve working conditions and foster continuous improvement. Be sure to respond and implement as many ideas as possible.
- Nurture your team. Offer challenges and a sense of ownership. Twenty-one percent of respondents to a recent survey said they would stay at their current employer if the company were to “carve out a specific career path and promote more.”
The recruiting experts at Employment Canada can partner with you to develop and implement your industry-leading plan for recruitment and retention. Read our related posts or contact us today to learn how we might be able to help your company!