When the economy is doing well, unemployment rates are lower. Lower unemployment rates mean that there are more open jobs and more of a demand for positions to be filled. Employees have more options when it comes to their choices of employment. This can present a problem for many employers. They may hire an employee, put a lot of resources into training them, and then have them leave expectantly for a better opportunity. High retention rates are common during times of low unemployment. Follow these few tips to reduce your retention rates and to improve your employee satisfaction levels.
Utilize extensive interviewing processes Although it may seem time consuming to extend the interviewing process, this can actually ensure that the candidates you choose are likely to stay longer. An employee who goes through a long interview and hiring process will likely not go through all of the motions if they do not really want the position. The interview process is also a great time to really get to know your candidates, further understanding their desire to work within your business.
An executive placement agency can be helpful in selecting the best candidates for a business. Executive HR search firms tend to place director and other executive level positions. These are the positions that cost the most to replace. With the costs of employee turnover ranging from 30% to 150% of the employee?s salary, extending the interviewing process and utilizing the services of an executive placement agency can save a business thousands in dollars. An executive placement agency has all of the necessary resources needed to ensure that the candidate is a good fit for the open position.
Lengthen the onboarding process Many businesses simply have an orientation process after onboarding a new employee. Most HR consultants, however, recommend lengthening the onboarding process. New hires that undergo a structured onboarding program are 58% more likely to be with the company after three years. The onboarding programs allow new employees to fully understand the company, their position, and their expected roles within the company.
Offer multiple benefits Sometimes pay cannot be negotiated much. Employees who are offered a similar job doing the same duties with more pay is likely to leave without notice. However, if you are able to offer your employees exceptional benefits, these will be weighed into the new job offer opportunity. An HR executive search often includes a pay range, along with benefits offered.
Offer a strong human resource department Approximately 22% of new hires leave their jobs within 45 days of being hired. Reasons include poor performance and temperament issues. Oftentimes, these are issues that could have been coached or guided through job expectations. An employee who is able to discuss their concerns and job related problems with a professional human resources department is able to work on these limitations.
An executive placement agency can usually take the place of hiring, but cannot provide job coaching and human resource skills to on site employees. The human resource department can also be beneficial because it can provide feedback on high turnover rates. Employees who choose to leave a company are often given the opportunity to complete an exit interview. The responses to this interview can help an employer to understand areas of improvement for employee satisfaction.
Offer time off and work events Employees who feel connected to their place of employment are also less likely to leave. If they are able to develop lasting relationships and enjoy spending time with their colleagues, they will consider this when given an alternative employment opportunity. Simply put, employees who feel valued are more likely to value their role.
The country is constantly aiming for low unemployment rates. When the rates are low, however, this can prove to be a problem for many companies. They may find it more difficult to employ qualified and lasting candidates. Employers may need to put extra efforts, such as using executive search consultants to select the best candidates that will remain with the company for many years. The employer can also increase job satisfaction among its current employees, which will also reduce employee turnover rates.
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