HIRE RIGHT TO REDUCE TURNOVER COSTS

Hiring the right person the first time around can save an organisation a considerable amount of money and drive down the cost of recruitment spend.

Recent Research by PWC found that Australian Employers came last, in a list of 11 developed countries, in relation to staff leaving within 1 year.

The study found that 1 in 4 employees leave their job before their first 12 months is up.

In Australia, the cost of this turnover is estimated to be $3.8 billion in lost productivity and $385 million in avoidable recruitment costs.

The cost involved in rehiring, inducting and training a new employees is considerable and often overlooked by employers as they rush through the process of hiring their next new employee.

It is critical to understand the job vacancy and the type of person, skills, experience, behavioural attributes and culture fit required for the role and expected outcomes by the organisation, before starting the recruitment journey.    We are also working closely with employers to ensure they develop a thorough and structured Induction and On boarding process to increase retention and the success of newly hired employees.

Employers are able to save $millions by improving hiring process and retention strategies.

Data from the Work Institute’s Retention Report shows that the cost to employers is around 33% of an employee’s salary to replace them.

Based on the median employee salary of $80,000 the average cost of turnover per employee is around $26,000 per employee.

A study of 34,000 respondents found that a surprising 75% of the causes of employee turnover are preventable.