Companies are scared. They’re scared of reduced revenue, reduced profits, reduced competition ability, reduced financial standing.
Truth is, they’re scared of something else–an ill that pervades most companies and most cultures, even as companies are trying steadfastly to avoid it. That fear is real. It is the new hire.
A new hire to a company is ripe with potential. That individual, filling a needed position within the company, whether a new creation or old, has the potential to not just fulfill the responsibilities of the position but rise in the company to become a major contributor, far beyond their original position.
Unfortunately, for many, and for many human resource departments, those new hires find their way out the door–sometimes in less than 45 days.
46% of human resources professionals say retention is their greatest concern.
57% of organizations view employee retention as a problem.
And, of course, 22% of new hires leave their jobs within 45 days of being hired.
The costs of employee retention are real. The costs of employee turnover range from 30% to 150% of the employee’s salary. A lost employee means that his or her responsibilities must shift to someone else, costing the company lost productivity. Further, a hiring process needs to start to replace that lost employee. That costs money. And time.
$11 billion is lost annually to employee turnover. And fortunately, this can be prevented.
One of the ways employees can be retained is by having a structured on-boarding program. An on-boarding program is more than a meet and greet of all the employees in different departments. A structured on-boarding means adding responsibilities slowly over a week or even six-week period, slowly letting a new employee grow in the role and its responsibilities.
Statistics bear this out. New hires that undergo a structured on-boarding program are 58% more likely to be with the company after three years.
With productivity a concern, it’s possible that new hires of an underrepresented gender or ethnicity might be the solution. McKinsey, a worldwide management consulting firm, has research that shows gender-diverse companies will outperform other companies by 15% and ethnically-diverse companies will outperform companies by 35%.
Finding a new hire and keeping the new hire in are different concerns. And more and more companies are looking for someone–whether a recruiter or another agency–to vet those candidates before they ever set foot in the office. A recruiter does what a recruiter does but here’s a look at the other side of the coin–the staffing agency.
Staffing agencies rely on the following principle–they can find the right candidate for the right job at the right time. Staffing companies rely on word of mouth and reputation to bring in individuals who are looking for work. In many cases, these individuals may not know what best suits their skills. Staffing agencies figure that out.
For a company looking to hire, a staffing agency can staff your team with an individual most likely to fulfill the responsibilities to the position. Candidates are carefully selected, asked about their skills, given job aptitude tests, then prepped for interviews. This last part can include dress tips, communication tips, and general preparation.
For individuals looking for work, a staffing company is an opportunity for employment. That opportunity for employment includes different kinds of work for different companies, depending on how diverse their skills are. It is possible for staffing agencies to be located through a search engine. Searching ‘staffing companies in Dallas’ or ‘staffing companies in Fort Worth’ can lead to an opportunity for employment with a company.
More than 3 million temporary and contract employees work for America’s staffing companies during an average week. Staffing companies can place employees in either temporary employment (called ‘temp’ work) or permanent employment. There is another option called ‘temp’ to hire, which means a person will start off as a temporary employee, then may be hired as a permanent employee.
Staffing companies are positive for both businesses and employees. Business have a luxury of relying on a company to vet candidates, which reduces employee turnover and helps with employee retention. This saves money. A candidate gets job advice, an assessment of personal skills, and a job placement that best suits their skills and personality.
Finding an opportunity for employment may be difficult but a staffing agency can help.