Employee turnover can be a huge waste of time and money for any company. Just think of how long it takes in the recruitment process to find the best person for a position. If for some reason this employee has to leave the company, the company is faced with the daunting task of diving back into the recruitment process to once again go through the entire recruitment process of finding the best candidate.
Not only is employee turnover time-consuming for you and your entire team, it also results in wasted time and a loss of precious time and ultimately revenue. The effort required to train a replacement for this person, before they are able to perform effectively, is an additional cost that should not be overlooked.
There is no doubt that employee turnover is a costly proposition. In fact, the cost of employee turnover can have a huge range from 20 to 250 percent of an employee’s annual salary. For employees making less than $50,000 a year, the cost of turnover is about 20 percent of the employee’s salary.
However this cost skyrockets when looking at highly skilled workers such as technologists, software developers and specialists. For instance, for those in senior executive positions turnover can cost as much as 213 percent of their current salary. This is a sizable amount, whether the employee in question is a CEO or an entry-level superstar.
Did you know you might already have the answer to all your recruitment woes in your company? It turns out that employee referrals are the best way to hire, beating even the job boards. With employee referral made easier and more efficient via social media sharing, the talent currently in your organization can share and distribute your open jobs with smart and capable people within their own networks.
One of the reasons employee turnover is such an issue in today’s modern recruitment process is that companies are ignoring the importance of company culture alignment. Identifying a candidate who fits with your organizational values, however, is often one of the key steps toward improving employee retention.
“Fit is a two way street: the candidate should be right for the job, and the job should be right for the candidate”, LinkedIn CEO Jeff Weiner said in a blog post.
The benefit of Simplicant’s applicant tracking system with its built-in employee and social referrals is that it allows employees who are already familiar with the company culture to refer those in their network who they think can fit into the organization with ease. Because your current employees know the talent they are referring and understand what it takes to be successful, their matchmaking is more likely to result in loyal talent.
You need talent who will love their job and look forward to every day in your organization. This means, when considering what applicant tracking system to use, you should look for recruitment software with referrals already built into the system.
Using an applicant tracking system with referrals as a key component will allow you to focus on your company’s referral program and make it easier for current employees to refer their talented friends. But not every recruitment software out there is built with referrals in mind.
You might discover some recruitment software treats referrals as a separate recruiting task, making it harder to get employees to suggest the best people. By simplifying the referral process, Simplicant makes it easy for your current superstars to direct you to your future MVPs.
Finding candidates who can jump right in and will thrive in your company culture is no simple task. If your recruitment software makes the referral process easier and trackable, you have time to focus on helping employees understand how important great referrals are. In addition, employees can benefit from the incentives attached to internal referrals.
Highlighting incentives within the organization is a great way to encourage employees to refer great people from their network to the company. These incentives might include a cash bonus, added vacation days, or even a fun company perk like a better parking spot. Since your recruitment software is making it simpler for employees to refer and track talent, you should make sure your workers also understand that there are concrete benefits in helping the company find great people.
Employee turnover can be costly, so use the power of referrals in combination with a next-gen applicant tracking system like Simplicant to improve retention and save money.
What are some ways your company reduces employee turnover? Share in the comments!
Photo by Razvan Chisu on Unsplash