Given that the average cost of hiring is well over a thousand dollars for even an entry level employee, turnover is one of the biggest costs to any size company. Minimizing this line item will be a boost to the bottom line and surely get managers noticed.
A recent survey showed 31% of workers have quit a job within the first SIX months. Wow! 31%! That is a huge number when you think about the loss of production and all the costs that get factored in to recruiting and hiring a new employee. Why are they leaving so soon? The top three reasons are:
- Changed mind on worktype (maybe the job helped them change their mind, eh?)
- Different work than they expected (they got through the recruiting, interviews, and onboarding and still didn’t know?)
- Boss was a jerk
The more a candidate knows (and the SOONER they know) the better off both parties will be. Headhunter brings a lot of this information to the very first step in recruiting. Our app gives transparency both sides demand. The candidate gets to see more accurate portrayals of the job (job descriptions can be very misleading), and the employer gets more insight into the personality and character of the potential candidate. But, why does the transparency need to go both ways?
Another big factor in retention is finding the right “culture fit”, as explained in INC.com’s article: “So why is culture fit so important for recruiting and retaining great talent? Hiring employees that don’t mesh well with the existing or desired company culture leads to poor work quality, decreased job satisfaction and a potentially toxic environment. This results in turnover which has high costs–both hard and soft.”
The aspects of culture and culture fit are debatable, but the bottom line is a company HAS a culture whether owners/managers admit it or not, and in order to help new hires succeed they need to “fit” that culture. Don’t wait until six months after the hire to discover this! During recruiting, evaluating the degree to which a candidate is likely to fit the company culture is easier using Headhunter. The Headhunter app tells managers more about the candidate, and they can tell more about the company (and its culture). If they don’t like the culture seen on the job listing, then why waste time filling out a job application or going to an interview. Both sides win by saving time and money for a better fit down the road.
OK so let’s say an employer wants to be a little more practical because “it’s hard to identify culture fit”. Then let’s go back to the numbers game they were playing beforehand. Industry data says something like tons of job advertisements get a small amount of engagement, then a small amount of potential hires, then a small amount of interviews, which results in maybe one or two out of ten interviews being offered the job. The one or two “finalists” may not even be an obvious fit for your company and/or the position, but the manager has spent 45+ days trying to fill it and they don’t want to start all over, so they hire using the “warm body syndrome” and cross their fingers, which leads to the horrible statistics stated above. Using Headhunter will get employers a prequalified candidate and will likely result in eight or nine of those ten interviews actually being great candidates and the manager will get to pick from a deeper pool, which means a higher degree of success and less risk.
As with most things in life, “an ounce of prevention is worth a pound of cure”. If companies can spend a little more effort to recruit smarter, then the results will easily be measured with lower turnover and higher employee engagement.