It can be devastating for someone to lose their job, even if they were only recently hired. However, this can also be painful to the company they worked for.
High employee turnover can actually end up costing a company money. Between the time spent by human resources executive recruiters spending their days flipping through resumes and interviewing potential workers, it amounts to a sizable amount of money being expended just to end up back where they were without an employee. Except now they have less money as well. The actual costs of employee turnover are estimated to range anywhere from 30% to 50% of what the employee’s salary would have been.
So how can a business prevent high turnover rates? Well, there’s a good chance there is something wrong with their human resource staffing and talent acquisition methods.
A recent survey conducted by Robert Half shows that aside from performance issues, of the 1,400 executives polled, around 36% felt that the biggest factor in their failed hires was a poor skills match with their position. The second largest, amounting to around 30%, was unclear performance objectives. These can mostly be attested to poor communication by recruiters.
So how can they remedy these issues? Human resources consulting firms actually specialize in optimizing the hiring methods of companies. Not only do they help them understand what to look for in potential employees, but also techniques on how they can improve worker efficiency through staffing.
For example, McKinsey’s research has shown that a gender-diverse company is 15% more likely to outperform their peers. Ethnically-divers businesses are actually 35% more likely to do the same. Human resources consulting firms can help show recruiters how to effectively vary the applicants they look at.
When looking over their quarterly numbers, it is easy for a company to blame poor performance by employees. Unfortunately, they don’t take action by improving their human resources executive search methods, but instead just fire and restaff. Human resources consulting firms can help put the really important issues into perspective.