And How Can Your Firm Prevent this Expensive Problem?
The hiring and onboarding process for any quality employee involves multiple expenses. Of course, your company must provide sufficient office space, equipment, salary, and benefits for employees. You do all this with the expectation that they will stay with your firm and provide benefits commensurate with the expense. If they are not satisfied with the job or find a better opportunity elsewhere, rapid employee turnover can occur. This cost of turnover is exceptionally high and comes from multiple directions.
Wasted Onboarding and Training Expenses
One of the biggest and most obvious costs of employees leaving a position soon after filling it is that all of the money you spend acquiring that talent and training them on in-house systems and methods is lost. Of course, if the employee stayed for a year or two, you still got recompense in the form of sales or other revenue-boosting efforts. If they leave much more quickly, your budget may suffer.
Lost Revenue that Destroys Forecasting Models
Achievements of sales, profits etc. depend on the performance of employees in critical roles and/or top performers. You have probably have made significant efforts to create revenue forecasts and formulate ambitious goals for expansion assuming you have the talent to achieve them. If an employee in a critical role or a top performer leaves for a new opportunity, that could disrupt your plans and create delays. This is especially true if you are unable to fill the role with someone who has the same level of talent.
Employee Turnover Creates Dissatisfaction
To some degree, turnover is contagious. When one important person on the team leaves, it exacerbates any lingering sense of dissatisfaction that other employees have. It also makes them believe that they could also take a step out the door toward a new opportunity. Combine this with the frustration of having to pick up additional work to fill the gap, and you may have a considerable problem on your hands.
The Best Way to Prevent Rapid Employee Turnover
Although many factors play into employee satisfaction, the best way to stop them from leaving your firm is to hire the right people in the first place. These decisions depend on so much more than just technical skill sets, availability, and the ability to present themselves well during an interview. You should also consider soft skills, occupational values, cognitive abilities, and personality traits to ensure that they are a good fit for your team or company culture. Also, make efforts to satisfy their personal and professional needs if you want a long-term relationship with the best talent in your field.
With the power of psychometric testing from ELEV8 Assessments (https://elev8assessments.com/en/elev8-psychometrics) on your side, you get a more accurate image of each applicant. This allows you to determine everything from how well they will fit into an existing team, to how they might achieve goals, etc. Arm yourself with as much knowledge of potential employees as possible in order to prevent the time-consuming and costly issue associated with rapid employee turnover and rehiring.