You’ve heard it before and know it all too well – without the right people, your business won’t make it. The people you hire are the foundation for all that you accomplish, and so, the focus on “hiring right” is a critical priority.
Yet, the traditional method for hiring continuously falls short. The recruitment market is still focused on resumes and “fitting people to jobs” rather than seeing if the job is the right fit for the potential hires, too. Staffing agencies focus on the process leading up to the job offer and charge by a hiring success fee (which is typically 25% to 100% of the hired employee’s wages). In this model, incentives are clearly misaligned. Staffing becomes a game of numbers, and with more candidates, the likelihood of finding a hire goes up.
The missing ingredient is quality (rather than quantity). By simply looking at a resume and trying to match it to a job description or job requirements, there’s a lot that goes unseen and unknown, especially for the prospective candidate. And, as we mentioned, your people should always be the priority.
However, it doesn’t always work out in your favor. From employee absenteeism to the dreaded outcome of employee turnover, you find yourself back at the drawing board seeking out candidates who will fit the company culture, can get the job done well, and remain committed.
In this article, we’ll share the real costs of turnover. Learn how you can avoid these costs by using a technology and transformative approach to sourcing talent unlike you’ve ever experienced it before.
The Hidden Costs of Turnover
Beyond the extensive amount of time it takes to fill the now open position, there are many unseen costs that come along with turnover. From a financial perspective, data shows that the average cost of replacing a single employee can range from one-half to two times the employee’s annual salary (and that’s a conservative estimate).
But, you also have to take into consideration the costs associated with:
Recruiting
Onboarding
Training
Paying overtime for current employees
Facing the opportunity cost of falling behind schedule
The numbers are quickly staggering and often fear-inducing.
But, that’s not all. Beyond the monetary impact of dealing with turnover, you’re also left with the other consequences, including:
Decreased productivity - Employees who are disengaged or on the verge of quitting are less motivated and therefore perform at a lower level than what they are capable of.
Lowered team morale - When a company experiences high rates of turnover, it leaves the other employees concerned and disheartened as they typically have to carry a heavier workload until a new hire is ready to go (thereby propelling the cycle of turnover), which makes them care less, worry about their future and be less productive.
Poorer customer service - Training takes times, so new employees may not be up-and-running to provide the best service as quickly as you’d hope, resulting in detrimental effects when it comes to customer service.
Strained HR personnel - With high rates of turnover, your recruiting team has to take on more work on an ongoing basis. Rather than focusing on the company culture or boosting engagement for current employees, they are constantly spending time attracting new talent. This rotating door of sorts leads to overly stressed and frustrated HR teams that may suffer from burnout.
The Solution Lies in Skills-Based Hiring
There’s a need for transparency in the hiring process, and prospects deserve to deeply understand the job expectations and how their abilities align before they sign their contract. This is what helps to ensure the “right fit.”
As a sourcing solution that combines technology with human interaction, TaTiO provides you with the ability to tap into a pool of qualified candidates to fill your open positions. This means that you will hire from a pool of people who have performed a specific job simulation test and proven that they possess the skills and competencies to do the job right. Beyond doing the job right, prospective employees have deep insight into how your company operates and its goals, so they can determine if it’s a good fit, just as much as you can determine if they are a good fit for your organization. It’s a win-win!
By embracing such a solution, you can reduce the chance of turnover by sourcing the best candidates from the top of the funnel. You’ll also be able to reach an untapped pool of candidates who are engaged from the start of the hiring process.
Plus, you gain a failsafe in case turnover still does occur as you will still have access to the qualified candidate pool to fill the position for a full year.
Hire With a Guarantee
Unlike traditional sourcing agencies that charge you a cost-per-lead, TaTiO’s business model is based on sourcing-per-position. With this guarantee, you gain peace of mind in knowing that:
You receive top-tier candidates that are well-suited for the open position from the get-go.
In the event of turnover, the pre-qualified pool of candidates remains available to you.
Your Story Starts Here
With this model for sourcing, you can reduce the likelihood of turnover and its costs and also lessen the burden and stress associated with recruiting. You’ll have the solutions you need at your fingertips.
Candidates are well-versed in the job role, have displayed that they are capable of performing its duties, and know exactly what to expect upon being hired. By removing the knowledge gap that would otherwise exist regarding the role, employers and prospective employees get to start off on the same page and continue to turn the pages of their story together, without the fear of a premature ending.
Ready to start sourcing and hiring right with TaTiO? Request a demo!