2020 is Leap Year, but that doesn’t mean you should take a leap of faith when making hiring decisions. Many businesses in the service industry who face high turnover are often forced to make quick hiring decisions, and sometimes that means finding just about anyone to fill an open position. But the cost of recruiting, hiring, and onboarding a new employee is too great to waste a position on someone who shouldn’t be hired in the first place.
Estimates on the cost to replace an employee are all across the board and often range from $3500 on up to 30% of an employee’s annual salary. When replacing an hourly employee, the estimate is usually closer to the $3500 mark, but when you are facing 70-100%+ turnover, that can be hundreds of thousands of dollars a year, even for small businesses.
Factors to consider when calculating the cost of turnover, include:
- Job advertising fees
- Time spent by staff and hiring managers recruiting, interviewing, and training new employees
- The negative impact of turnover on existing employees
- The possible negative impact that a bad hire has on customers and employees
What can be done to help prevent poor hiring from happening?
Every bad hire that can be prevented is worth it. But what can you do to prevent a bad hiring decision from being made? The simple answer—the right assessments during the application process. But what is the “right assessment” for hourly workers. When hourly candidates are filling out their applications, the process needs to fit their experience and not be overly long and cumbersome like assessments involved in hiring white collar, non-service industry positions.
The key is to ask the right questions at the right time for the right positions.
Based on industry best practices, talentReef’s recruiting platform leverages integrated, industry-centric assessments that analyze a candidate’s personality traits and behaviors. These assessments help highlight candidates who are the best fit for open positions, ensuring a match that goes beyond core job requirements, focusing on skills and positive personality traits. Request a demo to see the talentReef Recruitment Marketing platform in action.