Bad hires cost more than you are willing to admit-How to improve your retention rate.
Everyone can agree that a bad hire is a costly mistake and also inconvenient. But do you know just how expensive hiring the wrong employee is to your business?
The Cost of a Bad Hire
It’s expensive to hire a bad employee. To calculate the cost of a bad hire, you will need to consider all these factors:
Recruitment advertisements fees and staff time
Relocation and training costs for replacement hires
Negative impact on team performance
Disruption of projects
Lost customers
Weakened employer brand
Litigation fees
These areas are several examples of how much a bad hire can cost your company. Calculate the cost of several of those examples and it can be a very expensive learning lesson.
Increase Your Employee Retention Rate
As you do the best you can to avoid making bad hiring choices, you can also do a lot to make your environment one that employees want to stay at a long time and do great work. To help increase your retention rate, consider these guidelines.
Be Clear About Expectations
It’s so important that managers and supervisors are clear about their expectations for their employees. It’s more often that people will leave a manager rather than leave a job or company. One of the best ways to keep your employees is to be clear about expectations regarding growth opportunity, daily tasks, wages or compensation, and company goals. When employees know what’s expected of them they have a greater sense of purpose which translates to overall worker happiness.
Allow Employees to Speak Their Minds
Another great way to achieve higher employee retention is to create an environment where employees can feel comfortable speaking their minds. They want to be able to share ideas, feedback, or frustrations. When a company allows the proper avenues for open communication, it makes their employees feel significant and valued. Team members are less likely to leave a company when they feel as though they can speak their minds to their coworkers and supervisors.
Reward and Recognize Your Employees
Employees want to feel as though their work is appreciated. A company can retain their employees by recognizing effort and accomplishments and rewarding those workers who meet or exceed job performance expectations. Sometimes, the reward or recognition can come in the obvious form of an increase in compensation. Other times, small gift cards, or lunch outings are appropriate. Pulling the person aside and complimenting their effort or accomplishment directly, as simple as it sounds, can reap great benefits.
Create a Healthy Company Culture
There are many ways to create a healthy and positive company culture. As cliche as it sounds, start by treating everyone as you want to be treated. Nobody wants to work for a jerk..for long. Hire people that mirror the qualities you want your company to have-integrity, honesty, empathy optimism to name a few. Creating a positive culture where people feel valued and happy is not as easy as it sounds. But in doing so, you are doing the right thing for your employees and the right thing for your business.
