Top talent doesn’t come cheaply, and retaining them gets even more expensive. Losing a top performer can increase recruiting costs, associated fees and up to five times the amount of salary. There are also other factors that come into play that could cause a company financial ruin:
- Lost productivity; both by the employee and his or her surrounding team.
- Loss of morale by remaining employees that impact productivity and interpersonal dynamics.
- Lost of intellectual property.
Here’s some tips from Summit Assessment Solutions that will help you avoid the costs associated with top employee defection:
1. Determine what you are looking for in an ideal candidate before you hire. Look not only at skill set required and competencies, but look at other successful people in the job and what makes them successful. Make sure that you conduct a behavioral interview to assess past experiences.
2. Most companies hire and then throw the candidate to the wolves. Make sure that there is a process by which the first 90-120 days are measured. An assimilation coach can assist in the planning process and implementation of this strategy and can assist in opening up the barriers to communication.
3. Establish an orientation that is On The Job in nature. On the job training allows a person to better understand and assimilate a topic in their normal routine. It also allows for interaction and collaboration of new associates, allowing a rapport to be established.
4. Use assessments to match skill, competencies and interest to the job. Employers that use assessment tools show a better rate of retention and less rate of failure for a particular hire.
5. Set up a plan to continue the growth opportunities. Setting up a success plan assures that the employee has something to strive for and that there is a guaranteed reward or a result at the end of the road.
6. Find what your employees value and use those things as motivators. It is important to personalize the individuals motivation so that the employee feels connected to the organization. It also makes the employee feel that the company cares about him or her.
7. Get your employees involved in company decisions. Employees are not stupid. Allowing an avenue for their feedback increases their ability to feel under control and passionate in the business, and helps to dissolve barriers to communication that would otherwise build up between teams and associates.
8. Look for ways to improve your employees life/career education. Most employees today are lifelong learners and want the company to provide such opportunities as well as fund educational opportunities. Many companies that offer tuition and seminar reimbursements go a long way in employee satisfaction.
9. Although many employees that leave an organization claim it’s for monetary reasons, surveys by Gallop and other such organizations note that money is usually third or fourth on the list of dissatisfaction. At the top of the list are things such as being more involved with the direction of the company, making a personal impact and lastly getting recognition from a superior.
Consider these tips when evaluating employee retention policies in your place of business and you’ll soon see defections decrease.
This post is brought to you by the good folks at Summit Assessment Solutions.
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