The average replacement cost of a new hire can equal one third of the individual’s annual salary. For example a bad hire earning $50,000 a year would cost you $16,500 in incremental costs to replace the candidate.
A recent survey by Robert Half showed that one-third (36 percent) of 1,400 chief financial officers surveyed felt the top factor leading to a failed hire, aside from performance issues, is a poor skills match. The second most common reason (30 percent) was unclear performance objectives.
Another reason someone may not work out is due to the “cultural misfit”. This can occur when a candidate, who seemed perfect on nearly every level, clashes with the organization’s culture.
What are the signs that an employee is looking at leaving you?
1. Negative Behavior
Changes in behavior from an otherwise good employee, such as habitually disappearing for unexplained reasons or increased despondence, could be a sign that they are beginning to fade from your company.
2. Increased Absences or Unusual Lateness
Perhaps they’ve already begun to disappear for short periods of time. This may illustrate the lack of importance the job has begun to have in the employee’s life or even suggest that the employee is attending job interviews. It may not be long before they vanish for good.
3. Employee Disengagement
Employee engagement levels are always a good indicator of whether or not the employee will stay or leave. They may only do what’s absolutely necessary to get the job done or not offer suggestions to improve the workforce. They rarely, if ever, work late and they don’t give their jobs much thought when they finish for the day. They could even be actively disengaged—purposely sabotaging the company or other employees. When an employee is disengaged, they have already lost interest in the job. It won’t be long until they vanish without a trace.
4. Attitude
Of course, when employee engagement fades, their overall attitude towards the company changes and policies or standards will take on negative meanings for them. The employee may be about to disappear.
5. Decreased Productivity
Compare the employee’s productivity and the quality of their work to what they were previously producing. If you notice that it is not as good today as it was in the past, it could be a sign that their presence in the company will not last for long.
Obviously, this article is not about apple turnover. It’s about employee turnover. It’s about one of the biggest issues for business owners. Watch out for the signs and reduce employee turnover by addressing the challenges before it’s too late.
If you are a small business and would like to stop losing time and money on future hiring mistakes, tweet me on TWITTER, like me on FACEBOOK join me on LINKED IN – and let’s talk.
