“I quit.” As soon as you hear those words, you can almost feel the dollars leaving your bank account. The same goes with frequent terminations. A high employee turnover rate can significantly hurt your bottom line, whether it’s voluntary or not.
You spend a lot of time, money, and resources on your recruitment and hiring process and on training new hires. Once an employee leaves, you’re left having to do it all over again to find a replacement, which can be costly when you are faced with this situation far too often.
There are a lot of hidden costs associated with employee turnover. The loss of productivity you face while the position remains vacant for a long period of time as well as the lowered productivity that occurs when you’re training your new hire can hurt your profits. The time your hiring managers must take to find a replacement can translate into a hefty sum as well. Even small factors like the administration costs associated with having to take someone off payroll and add a new person or having to make a new ID badge add up.
To reduce the negative impact that employee turnover has on your company’s productivity and bottom line, consider working with a recruitment firm. Recruitment agencies can help in many ways.
Choose from the Best of the Best
Because recruitment agencies specialize in recruiting and hiring, they have unmatched knowledge and expertise in these areas. This hiring experience will translate in better hires. Recruiters are skilled with attracting and recruiting top talent. They have the market intelligence required to offer competitive salaries and packages and the best employees want to work with them.
When you work with an agency, you won’t be settling for the best of the mediocre choices in front of you. Often, you feel forced to choose a not-so-stellar candidate simply because you have no other option and time’s running out. But when you work with recruitment agencies, you’ll get to choose from the best of the best—the top ten percentile.
Finding the Right Person for the Job, the First Time Around
Recruitment agencies match candidates with employers on a daily basis. This experience has allowed recruiters to understand what makes a great cultural fit. Even if an applicant has all of the qualifications required for the job—the skills, education, and experience—doesn’t mean she will be a good fit and stay employed at a certain company for a long time.
What significantly reduces the chances of high employee turnover is to hire based on cultural fit. If the candidate has the same views, values, and morals as the company and believes in what the company does, she will be happier in the employment situation, and thus, stay on a long-term basis.
Because recruitment agencies have large candidate pools, you will be able to fill your vacant positions faster. These firms have existing reserves of qualified candidates who are already pre-screened and vetted, so they’re ready to go straight to the interview process the moment they get a call. The impact felt from the loss of productivity caused by an empty role in your company will be less severe as it may only take a few days to fill it, instead of a few weeks or months.
Time and Cost Savings
As we mentioned earlier, a high employee turnover rate can be costly in terms of time and money. But when you use the services of one of the many recruitment agencies on the market, you can reduce this impact. The firm’s recruiters will take care of all the legwork, so your hiring managers can keep focusing on their day-to-day responsibilities. You won’t lose out on money due to wasted time.
You can significantly improve your employee turnover when you engage the help of a qualified recruitment firm.