While turnover in any industry is inevitable, the actual costs of replacing an employee can be staggering. In order to reduce the actual and hidden fees associated with employee turnover, consider the following tips on how to promote employee longevity. In addition, evaluate how these fixed costs affect your business in order to reduce Talent Acquisition Liability.
Costs- While many acknowledge the evident costs of separation, most don’t realize the extent of the fees. Here are a few examples for various aspects, as reported by The Staffing Stream:
Recruiting Costs- These include advertising, interview time, background checks, and signing bonuses.
Onboarding Costs- Fees resulting from orientation time, training expenses, and lost productivity during training.
Hidden Costs- Client issues due to turnover, missed deadlines, and disrupted operations.
In order to prevent these costs, the following tips are recommended.
Diagnose and Resolve Issues- Your clients should identify the core issues with retention in their agency. Once these factors are realized, advise them to implement the proper solutions. Experts recommend conducting exit interviews with employees to decipher the perception of the company, the culture, and why they chose to leave. Further, compare voluntary versus involuntary turnover in relation to hiring and training practices. From this information, your clients’ agencies will be able to determine common factors that lead to their resignation.
Retention Strategy- In addition to solving turnover issues, an active retention program should be implemented. Your clients can track this progress by a yearly headcount of how many employees left their agencies. It is advised they set goals for an appropriate, suitable turnover rate for their company and invest in the culture to constantly challenge and reward their workers. At the end of the year, results should be evaluated to determine effectiveness.
While turnover cannot always be prevented, realizing the actual costs and following these tips can help to promote a positive work environment and employee retention. At World Wide Specialty Programs, we strive to protect your clients against the broad scope of risks the staffing industry faces. For more information on our products and services, contact our specialists today at (877) 256-0468.