Company owners and executives often focus on reducing turnover as a way to save money for their companies. They know losing a key employee costs the firm in several ways. It forces a re-engagement of the recruiting, interviewing, and hiring process, with all its attendant costs including costs for flying candidates out to interviews, a vacant position until a suitable replacement is found, not to mention the search fee. It also means a new employee that will have to be trained, and established workers will spend part of their otherwise-productive hours orienting and explaining duties to the replacement. Not to mention having a key role empty and tasks left uncompleted when the position is vacant.
But not all employee turnover is created equal. According to the Journal of Management, company performance suffers most when the turnover comes from the ranks of management, in mid-sized companies, and where the lost employee’s responsibilities centers on safety, quality, or customer service. It is no coincidence that the higher up in management a departing employee works, the greater the chance that he will be somewhat responsible for all three of these critical areas.
Because replacing an Executive Level employee is extra-costly, in terms of lost productivity and opportunity, hiring for the long term is especially critical for Director level and higher roles.
Here are 6 easy to implement ways to increase your chances of making your next hire a solid match for both the company as well as the employee, and increase the prospects for a mutually beneficial long-term employment relationship:
Ann Zaslow- Rethaber is President of International Search Consultants, a leader in Executive Search since 1999. Please reach out to ISC for any hiring needs from the following 4 recruiting teams : Sales Recruiters, Finance Recruiters, Human Resources Recruiters, & Construction Leadership Search Consultants.