Turnover costs are steep. Just ask John Bishop, founder of employee assessment company Accent on Success. Bishop says that one of his clients, a St. Louis-based photocopier company, figured its first-year cost to train a new copier repair person is in excess of $63,000. That figure includes advertising for the position, overtime for other repair people to cover the area until a new person can be hired, then salary, training costs, travel, and road time with a supervisor.
A study done by Rutgers University Graduate School of Business estimated that the turnover cost for a non-professional position is one and a half times that of the person’s annual salary, while the turnover cost for a professional position is as much as two times that person’s salary.
Doesn’t this kind of financial impact make you want to take your hiring process a little more seriously?
Hiring For The Long Haul
Productive hiring is about more than just making sure the candidate has the right skills and experience for the open position. They also have to be able to work well in and contribute meaningfully to the culture you've established for your company. If the candidate is a square peg in a round hole, they aren't going to last long. So you should do everything possible to assess that the person you're planning to hire is willing and able to successfully navigate your environment—before you officially bring them on board.
Here are signs that the job candidate you're thinking about hiring might not be the best fit for your business:
1. They don’t know much about your organization. Candidates who come in for their interview without having done any homework on your organization aren't likely to make an educated decision as to whether they're a good match for you. Savvy candidates will use the interview as an opportunity to probe you further about your business's culture based on their preliminary research.
2. Your leadership style won’t meet their expectations. Perhaps you’ve asked candidates to share the qualities of their ideal management team, and they describe a manager with an open-door policy and a transparent communication style. You know that your executive team’s close-to-the-vest, hierarchical approach will not fly with them. Save yourself some heartache either by being upfront about the potential disconnect or by passing on the hire altogether.
For lots more signs, have a look at the full piece at the AMEX Open Forum.