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Bad Hires Cost More Than You’re Willing to Admit – How to Improve Your Retention Rate

June 20th, 2018

Everyone can agree that a bad hire is a costly mistake and also inconvenient. But do you know just how expensive hiring the wrong employee is to your business?

The Cost of a Bad Hire

It’s expensive to hire a bad employee. To calculate the cost of a bad hire, you will need to consider all these factors:

  • Recruitment advertisements fees and staff time
  • Relocation and training costs for replacement hires
  • Negative impact on team performance
  • Disruption of projects
  • Lost customers
  • Weakened employer brand
  • Litigation fees

These areas are several examples of how much a bad hire can cost your company. Totaled, it may be close to, or even over, $200,000.

Increase Your Employee Retention Rate

As you do the best you can to avoid making bad hiring choices, you can also do a lot to make your office environment one that employees want to stay at a long time and do great work. To help increase your retention rate, consider these guidelines.

Be Clear About Expectations

It’s so important that managers and supervisors are clear about their expectations for their employees. It’s more often that people will leave a manager rather than leave a job or company. One of the best ways to keep your employees is to be clear about expectations regarding growth opportunity, daily tasks, wages or compensation, and company goals. When workers know what’s expected of them they have a greater sense of purpose which translates to overall worker happiness.

Allow Employees to Speak Their Minds

Another great way to achieve higher employee retention is to create an environment where employees can feel comfortable speaking their minds. Workers want to be able to share ideas, feedback, or frustrations. When a company allows the proper avenues for open communication, it makes their employees feel significant and valued. Workers are less likely to leave a company when they feel as though they can speak their minds to their coworkers and supervisors.

Reward and Recognize Your Employees

Employees want to feel as though their work is appreciated. A company can retain their employees by recognizing effort and accomplishments and rewarding those workers who meet or exceed job performance expectations. Sometimes, the reward or recognition can come in the obvious form of an increase in compensation. Other times, small gift cards, or lunch outings are appropriate.

Create a Healthy Company Culture

There are many ways to create a healthy and positive company culture. This can also help increase your employee retention. For more information on how to enrich your office culture and retain happy employees, contact Concorde Personnel.

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