How Much Does Turnover Really Cost?

June 16th, 2017

Turnover is an expensive, disappointing hassle; there are no secret there. Every experienced manager knows that an employee tenure of less than one year translates to high cost and limited returns for the company. If your selection process is flawed, your onboarding strategy is off-putting, or your job descriptions don’t match the reality that your new hires face in the workplace, you’re likely to turn your company into a giant revolving door. If you think you can afford a few reckless mistakes now and then, add up the actual cost and find out for sure. Don’t forget to factor in these considerations.

Training costs

When you bring on a new employee, that employee probably won’t serve as a financial asset to the company right away. In fact, almost every position in every industry requires a ramp up period, or a period in which the new hire can only be expected to learn, listen, pick up skills and make educational mistakes. This period may last three days or three years, but as long as it’s still underway, the employee’s presence in the workplace can been seen as a liability, not an asset. You invest in your new team member by providing the training, patience, and damage control that new employees almost always need… at least until they learn the ropes. If the employee leaves before the ramp-up period is over, their tenure can be considered a cost, not a source of revenue.

Morale

Morale and attitude are contagious. Positive or negative, they spread from one employee to the next. So when one person on your team isn’t happy, others may start to feel the same way (and vice versa). When an employee heads for the door in search of something better, others follow suit. By the same token, a happy and loyal employee lifts morale, which boosts productivity.

Opportunity costs

When an employee leaves, the replacement process begins, and everyone involved in the sourcing, resume review, interview, and selection process begins shifting their attention toward this project and away from other things. If you add up the hourly salaries of all of the people who contribute to this effort, the price tag starts to rise. Simultaneously, the work they would otherwise be doing must be shifted to someone else or left undone during this time.

Administrative costs

After you account for the advertising fees and the general costs of recruiting and screening candidates, you’ll need to factor in transportation to interviews, fees associated with background checks, and fees associated with adding and removing employees from benefit and insurance plans.

When you estimate the total combined cost of each of these elements, you’ll better understand the scope and the stakes of your hiring decision. For more on how to complete this calculation, contact the Charlotte staffing experts at PSU.

Small Gestures that Make a Big Impression

June 2nd, 2017

Your interviewer has an important task to complete within a limited time frame. So when he or she makes a hiring decision, only one part of this decision will be based on pure numbers and measurable data. The rest will be based on instinct, gut feelings, and the lessons of past experience. In other words, when you’re trying to impress an employer, your resume will only take you so far. To cover the remaining distance, you’ll need to generate an intangible sense of reliability and likeability. You’ll need to make the interviewer feel interested in you and excited about the idea of working with you. Here are a few small moves that can make a big difference.

Interest is a two-way street.

To spark another person’s interest in you, show interest in them. In this case, you’ll need to demonstrate genuine curiosity about the job and the company and express real—not fake—engagement with every word your interviewer says. Keep your eyes focused and your ears open. Don’t treat the interview like a pop quiz or a grilling session. Treat it like a fascinating conversation.

Stay cool.

There’s a fine line between interest and desperation. Keep in mind that you’ll hold more cards if your interviewer knows you have other options, and your cover will be blown if you’re ready to perform like a circus dog in exchange for a bit of approval. When you speak, speak calmly and quietly. When you sit in a chair, occupy the entire chair, don’t perch at the edge. When you’re asked a question, think and remain silent for two full seconds before you speak. Your interviewer will wait.

If you don’t know something, that’s okay.

Don’t bluster and sputter. If you’re asked a fact-based question and you don’t know the answer, just say so. Don’t apologize, just state your truth and move on. On the other hand, if you’re asked to solve a problem or think through something, give the answer an honest and reflective effort before you hand the floor back to your interviewer.

Dress thoughtfully.

Wear a standard, pressed interview suit if you choose, but if you’d like to go the extra mile, put some thought into your outfit and dress in a way that matches what you know about this company and its culture. For a more relaxed organization, skip the suit and opt for pressed khaki slacks and a buttoned shirt or a skirt-blouse-cardigan combo.

Be honest.

Honesty during a job interview is refreshing, memorable, and rare. If you were fired from a past position, just say so and explain why. Describe what you learned from the experience and express an interest in putting the episode behind you.

For more on how to leave a lasting impression during your interview, reach out to the Cleveland County staffing professionals at PSU.

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