Serving Fort Lauderdale, Sarasota, Tampa & Orlando
How much will a bad hire cost your business?
People don’t know how to directly measure the impact of employee retention or the cost of turnover, therefore they often get overlooked. Though it is hard to quantify employee turnover, it’s generally defined as the cost to hire a replacement employee and train that replacement.
Hiring is a big investment and the people you hire are your greatest assets. Turnover is a natural part of any business, but a high turnover rate can negatively impact your company and greatly affect your bottom line.
As one of the top staffing agencies in Florida, we review the expense of employee turnover, along with ways to prevent and manage the costs.
The cost of losing an employee can cost tens of thousands of dollars when you factor in the costs of hiring, onboarding, and training. There is also the expense of advertising, possibly a recruiter fee, and the cost of doing interviews and processing paperwork. It also takes time to orient a new hire and, as we all know, time equals money.
Not all the costs of turnover are monetary, but they are equally impactful on a business. There can be a significant cultural influence and loss of engagement from other employees due to high turnover. Employees in high turnover industries, such as the restaurant business, typically don’t spend enough time at work to develop relationships with their coworkers. Often morale is lower when current employees have to pick up the slack after one of their colleagues leaves. Productivity can decrease from a disruption in day to day operations.
In order to prevent high employee turnover, one must create a work culture that enables growth and an environment where people feel like their coworkers have their best interests in mind. In most cases, high turnover has to do with employee dissatisfaction. Contributing factors may be less than stellar management, poor working conditions, long hours, low pay, and minimal benefits.
Managers need to empower their team and offer meaningful, genuine praise in order to avoid employee turnover. People need to be recognized for their achievements and incentivized to do well. Employees need to be able to acquire new skills to advance their careers and be able to discuss long term personal goals. People want to know their company is working on something that matters, so it’s critical to articulate a clear company mission. Additionally, company leaders should encourage communication and be transparent to avoid gossip and rumors.
The expense of employee turnover makes it essential to hire the right person the first time. It sounds simple enough to hire a person with the skills, attributes and knowledge into a position that best matches what they excel at, then they will be successful.
The recruiters at HH Staffing Services would love to assist you with hiring. We can help you cut costs and convert staffing into one fixed cost on your financials. We can also advise you on employee engagement and retention to assist you with reducing turnover. For more information, please visit our website. Our team is very active on social media as well, so be sure to follow us on LinkedIn, Facebook, Twitter, Google+, and Instagram. We can’t wait to connect with you!