Save Money and Increase Growth Reduce Employee Turnover
As the new year begins, it brings endless opportunities for business owners to help grow their businesses. The 2019 goals we are hearing the most from business owners all revolve around people-specifically, reducing turnover. These business owners know that the only way they are going to grow profitably is with a great team.
Why are businesses focusing on reducing employee turnover?
- Turnover is costly! According to SHRM, the estimated cost to replace an entry-level employee is 50% of their annual pay and benefits. The cost increases up to 250% when the position is a technical or manager level. The cost to replace a part-time employee at $10 per hour can still be as much as $7500.
- High turnover can result in lower profitability and less of a focus on customer service. The constant need to search for new team members and bring them up to speed requires additional training hours and takes away from a focus on performance. Customer service, productivity and sales may suffer due to this shift in focus.
Where should you start?
Hiring the right people
Filling open positions is part of being in business, and certainly, the goal is to find the best talent out there to fill them. The process, however, can prove to be long and tedious, especially if the position is highly specialized or conversely, not universally appealing. But there are many ways in which to reduce the stressors of finding new talent and get those positions filled.
The first step in hiring the right people is getting clear on your true needs for the position and business. Additionally, you want to spend some time on what you have to offer a new team member. What do your current employees say they like most about being a part of your organization. Once you have developed your employer persona and know what is uniquely great about working at your company, it is time to fill your funnel.
Here are three simple steps to take now to start filling your funnel with qualified prospective candidates who fit your culture.
1. Social Media
Social Media is an often untapped resource that can yield giant results if used correctly. Start by creating an account for your business across the major social media, Facebook, Twitter, Instagram, Linkedin, and YouTube. Create videos and upload them to your YouTube account illustrating to prospective employees your workplace culture, mission, and benefits. Encourage employees and hiring managers to utilize the platforms to post and share jobs among their networks. Use the platforms’ services to track click rate and responses.
2. Employee referrals
Your current employees could be the largest resource for finding new and skilled employees to fill vacant positions. To tap this resource, offer a referral program to your employees to incentivize them when an opening appears. Current trends show that employee referrals help fill positions faster and attract candidates who will stay longer.
3. Job Postings
Revise job postings to make sure they include eye-catching and attractive language that highlights the best of your company and the job. Include any and all company and job perks; things like free lunches, paid vacation/sick leave, flexible hours, health benefits, etc. Make sure to identify what sets your company apart from similar companies. What makes you stand out, why should they choose you?
Lastly, and most importantly, make sure your job description is realistic. Try to avoid setting the bar too high. Ask yourself, do I know anyone who could do all this, is it possible?
Now that you have cultivated a candidate following, you need to make sure you ask interview questions that get you the results you need. The way you word interview questions can make a big difference in the candidate responses you receive. With the right questions, you will learn more about who the candidate is in the workplace and if they are the right fit for your position and culture.
Not sure your interview questions are working for you?
At AHA! We offer leadership and professional development programs, employee engagement solutions, and recruitment solutions alongside educational resources and other tools. To learn more about how we can help your team grow or to find out which AHA! Impressions programs will work best for your business’ needs drop by the contact page and get in touch.