If you hire the right people in the first place, half your problems are solved.
Everyone involved in employing staff understands the importance of finding, hiring and keeping talented people , but what about the financial costs and benefits involved.
Studies in over the years have started to identify some interesting trends and ‘rules-of-thumb’.
Consider the following multiple-choice questions, and check your answers with the findings of studies in this area.
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How much more do good performers deliver compared to the average?
a) 20% b) 50% c) 100%
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How much does labour turnover cost?
a) Basic salary + 20%
b) 2 X Basic salary
c) 3 X Basic salary
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What is the full cost of hiring a new employee?
a) Recruitment and training costs
b) Work value lost during the run down to leaving
c) Value lost whilst the new person gets up to speed
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When are people most likely to leave?
a) Within the first year
b) After 2 years
c) After 5 years
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How do you find good people?
a) Agencies and head-hunters
b) Advertising
c) Referrals and speculative applications