Employee turnover costs are always bigger than most business owners think.
For example: The direct and indirect costs of turnover for an entry-level retail position average approximately $9,444 per employee. If your business is experiencing high turnover for employees that are in professional positions, then your turnover costs are significantly higher.
Considering those costs, reducing employee turnover should be a high priority for more businesses – including yours. Here are three tips proven to fill your revolving-door positions with highly motivated employees – both reducing your turnover and creating a more productive and successful workforce.
1. Provide A Realistic Job Preview
Set your expectations for the position early in the application process. For example, if the open position requires working in an extremely hot or cold environment, let your candidates know upfront.
Clear communication often results in candidate self-deselection from the application process, but that’s not a bad trend, especially for reducing turnover. In fact, self-deselection is one of the most effective ways to remove low-potential candidates from your applicant pools. These individuals know that the position isn’t a good fit and remove themselves from consideration before they’re hired and they quickly turnover.
Bonus benefit: Allowing candidates to self-deselect means your recruitment team spends less time interviewing candidates who likely aren’t a good long-term fit for the position.
2. Assess Position-Relevant Competencies
Job-relevant employee assessments are an essential piece to any consistent, accurate selection process – especially for selection processes focused on reducing employee turnover costs.
Not only are such hiring assessments objective, but, when properly implemented, they’re also tailored to the target positions and your specific organization to precisely measure the competencies indicative of success at your company. Candidates who have been screened by a job relevant hiring assessment are more likely to be better fits for the position in the long-term.
Bonus benefit: Candidates who score high in your desired competencies are also more likely to have a higher level of job performance.
3. Screen For Motivational Fit
If your most recent hire isn’t a good motivational fit for the position, he or she is going to turnover at a much higher rate. Yet, many organizations skip this crucial assessment in the selection and hiring process – or, more accurately, many companies incorrectly gather this motivational information.
Motivational fit is a competency that companies typically assess during a job interview. However, interviewers are often not trained in behavioral-based interview techniques that properly address motivational fit. When a candidate not only can do the job, but is motivated to want to do the job, he or she is less likely to turnover.
Bonus benefit: Training all of your interviewers with behavioral-based interview techniques is not only critical to reducing employee turnover, but better interviewing techniques also produce a more accurate, unbiased hiring decision.
Reducing employee turnover over the long-term starts by re-engineering your hiring process. Once you put these three proven tips into action in your employee assessments and behavioral-based interviews, your company can reduce high turnover costs and start realizing long-term success for your current employees.
Click below to download a free guide from Select International to start using more effective employee assessments and behavioral-based interview techniques in your organization today.
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