What’s Your Cost of Turnover?
Research by Leadership IQ tracked 20,000 new hires and found that 46% of them failed within 18 months.
- Imagine if a comparable failure rate happened on the manufacturing floor.
- Imagine if the invoices you sent to customers were only accurate 46% of the time.
- Imagine if the payroll checks you issued to employees were only accurate 46% of the time.
Hiring Mistakes Are Costly:
Hiring is a tough business. It takes patience, proper screening and careful analysis. It’s going to take some time to find the one who really fits the bill.
For most small businesses, it’s a natural part of the business’ evolution. At first you need generalists in most positions. You need someone to run all aspects of your Human Resources, for example. But as your business evolves and grows, so too does the spectrum of job duties in the HR Department. There comes a tipping point when you’ll often need Specialized Recruiters to locate talent with specific skills sets rather than rely on Human Resources to do all the hiring.
When you put the wrong person in a new position, and don’t react quickly enough, the new hire becomes frustrated or unhappy, or both. The work suffers and if this person manages employees, they suffer too. Once you see these signs, the writing’s on the wall.
- According to a study by the Society for Human Resources Management (SHRM), it could cost up to five times a bad hire’s annual salary.
You’re running the show, and that means you’re ultimately responsible for fixing the problem, whether that’s changing the recruiting process or the people. Sometimes it means bringing in an outside Recruiting Specialist with access to hidden talent – those not posting their resumes or applying to your online ads.
Once a Specialized Recruiter finds that right person, you’ll never second guess your decision to leverage this outside resource. Customers are happier, your current employees are happier, and more importantly…your HR Department is happier.
The status quo can be comfortable. But when inaction is hurting your business’ performance, change has to come. You need the right Specialized Recruiter to compliment your hiring. The sooner you address the problem, the sooner you can focus on other growth areas in your business.