Hiring managers have a very important role in today’s business environment. Interviewing and selecting the right personnel is one the most critical tasks to reaching organizational goals. The hiring decisions you make today will influence your organization for years. You have probably heard the saying “Turnover costs money”, but what does that really mean to you?
Many interviewers fail to understand, or have not calculated, the cost of turnover for their organization. When an employee leaves, the organization can invest up to, and in some cases over, 100% of the exiting employee’s yearly salary to locate, hire and train a replacement
Consider the following breakdown of turnover expenses:
- Low productivity/poor customer service prior to leaving
(Sales below plan, low morale, and poor service quality) - Cost of hiring a replacement
(Advertising costs, screening time, interviewing time, travel time and reference checking) - Low productivity/poor customer service while replacement learns do
(Sales below plan, below average service/quality, and training time) - Associated costs
(Low morale while job responsibilities and or territories are being shuffled, frustration, possible litigation, unemployment compensation, etc.)
Poor selection is costly to any organization. Synergy Sales Recruiting of LA, LLC can help you hold down these costs and convert an expense into an investment.