Employee Turnover: The Costs and How to Combat It

“Where do you see yourself in five years?” “What is your biggest weakness?” These types of interview questions may be contributing to the revolving door of employees your company is experiencing. Companies lacking an effective interviewing strategy risk high turnover. Increased turnover leads to increased costs and shared burden, as well as decreased morale and productivity. As demonstrated by our recent infographic, it is estimated that this type of turnover costs between 100% to 300% of an employee’s salary.

 

To avoid this litany of negative side effects, HR Morning recently published an article that includes effective employee screening procedures and five common mistakes for employers to avoid. In his article, “Effective screening tactics when recruiting top talent,” Rich Henson explains, “One recent study found that many hiring managers ask job candidates the same questions today as they did 20 years ago. Questions [like the ones we posed at the beginning of this post] have little value in measuring the skill level required for success right-now-today!”

 

According to Henson, interviews by your recruiting team remain the most effective way to screen and identify star candidates. He suggests telephone interviews precede face-to-face interviews and spare candidates the inconvenience of travel for those who do not qualify.

 

During both types of interviews, Henson lists five ways to conduct an effective interview:

 

Set a goal of having the applicant do 80% of the talking.
Learn to differentiate good information from sizzle.
Be comfortable with silence after a question is asked.
Display energy and show enthusiasm for the job being filled.
Prepare for the interview by reviewing the candidates’ resume and by rehearsing what you want to ask.

 

Henson also give five common mistakes to avoid:

 

Failure to develop up-front contact with the applicant.
Failure to tell it like it is.
Failure to match the applicant’s ability to the job.
Failure to allow enough time for the interview.
Failure to interview the “real” person.

 

Read Henson’s full article for details on these tips and mistakes, as well as sample questions and red flags.

 

Whether companies realize it or not, high turnover negatively impacts their organization. Recruiting costs, employee morale, and employer brand are all negatively impacted when there is turnover. Recruitment Process Outsourcing by Orion Novotus, can play a key role in increasing your retention and stopping the hemorrhage that is employee turnover.

 

Orion Novotus can optimize recruitment with any one of our proven RPO solutions. Businesses gain better hires, shorter hiring cycles, lower costs and greater efficiency through our end-to-end, co-sourced and project RPO.  Learn more about RPO through Orion Novotus here. You can also take this five-question quiz to see if RPO is the turnover solution for you.