It is important to control employee turnover in your business. High turnover rates can lead to increased training costs, inconsistent productivity, and poor morale. Because turnover usually increases Unemployment Insurance costs due to an increased number of claims from past employees, it also leads to reduced or limited profit overall. Are you wondering how to reduce employee turnover in your business? There are many things you can do, but most of all, you want to ensure that you are hiring the right people. There are a few ways to implement hiring practices that reduce employee turnover.
Have Peer Interviews
It is very important for the Director of a department, owner of the company, or other heads of the company to meet with the candidate in question. In many companies, that’s the extent of the candidate interviewees. It is also effective to have each potential employee meet with a few of their peers. Not only do multiple opinions help when interviewing, but a peer can often offer a different perspective. They are the ones who are likely performing the job the new candidate will be doing, and they will be able to better tell if the candidate has the experience for the job. If the peer will be working directly with the candidate, they also might hold a higher standard for the person being hired, rather than people who will not work directly with the applicant.
Create Job Simulations
Creating a job simulation will better assess the skills of the applicant in question. It provides a way for you, as the employer, to see if the candidate is a fit, and for the candidate to see if they like the work they will be doing. There are multiple ways to make a job simulation part of an interview process. You could create a simulation with other employees in the company to see how the candidate would react in certain situations. You could also have the candidate perform something similar to what they would do in the job, or write or design something based on what type of job they are seeking.
Hire for Culture
Companies often hire based on skills of an employee rather than culture. Of course you need to make sure a candidate will be able to perform the duties of the job, but it’s just as important, if not more important, to hire based on culture. Hiring a good cultural fit gives more assurance that the candidate will stay with your organization long-term. Be sure to check references to ensure each candidate in past roles previously exhibited the behavior and characteristics you’re seeking..
When hiring for a position within your company, be sure to consider the KSAs: Knowledge, Skills, and Abilities. Look at your job description for the position and then develop what knowledge, skills, and abilities you want in the perfect candidate. Then you can use your KSAs to develop your job announcement, interview questions, and any other hiring related processes.
It is very important to follow hiring practices that increase employee retention within your company. There are many ways to do so, but be sure to start with the above list to ensure you are hiring the best possible candidates. Remember, you want to ensure the people you hire are happy with the position, salary, and any other expectations — It’s just as important that they are as happy as you are with the choice. Anything you can do in reducing turnover will have a subsequent effect on lowering your costs. For more information or ideas on what you could do reduce turnover, visit Unemployment Tracker on the web at www.unemploymenttracker.com or sign up for our blog.