Increasing employee retention rates within your organization involves hiring the right people. Employers not only need to build a great team but also retain them as well. A company’s employee retention rate is a measure of how well you are keeping your employees satisfied within their jobs. If employees are dissatisfied turnover costs associated with replacing workers can be costly with recruitment, hiring and training costs each time a key worker is replaced. The process can be time consuming, which can lead to a loss in productivity while searching for a replacement.
There are several ways to increase retention rate among employees; however, the first step begins with the hiring process. Finding the right person and making sure they fit the company culture is essential. Organizations should hire the right people for long-term results not short-term benefits. For example, if you have an employee who stands out as a source of controversy, you may need to consider replacing that employee. Especially, if the employee has shown himself or herself not committed to your company’s mission and growth. In the long term that person can and will bring the team down.
A few things to consider during the hiring process are the following:
- Clearly communicate job requirements to candidates during interviews, if anything is unclear or uncertain, then potential candidates aren’t aware of what’s expected of them and may under perform if hired.
- Gathering insight into past performance of potential candidates by getting references, which is the best indicator of how well they’ve performed in the past. One of the best sources of information about candidates is a former co-worker who has worked with them in the past.
- Lastly, make sure the on boarding process is effective. Studies have shown the retention rate of new employees can be increased by as much as 40% with a solid orientation program.
The hiring process can seem daunting, however it is very important to follow through appropriately in order to get the right skills and qualifications your company is looking for. Strategic planning is vital for organizations who are seeking new talent. It can be the difference between a really good employee or a really bad one, an employee who contributes to growth or one who causes failure.