Wednesday, July 18, 2012

Working Smarter: Hiring Employees Who Will Stick Around for the Long Term


How to make sure you're hiring long-lasting reliable employees for your business.
Building a business takes more than just a great idea and time it takes great people. Therefore, it only makes sense that your business needs to focus on building a team of employees who work well together and are in for the long haul. Hiring new employees takes care because the goal is to bring on staffers who will commit to your long-term organizational success.

Yet, employee turnover seems to be a consistent issue with businesses of all sizes and industries. And this turnover can be costly. A Dun and Bradstreet article focused on a study conducted by University Berkeley’s Institute for Research on Labor and Employment that stated it can cost as much as “150 percent of a manager’s salary for a replacement.” For example, an employee earning $30,000 USD per year could cost your company $45,000 USD by the time you are finished trying to find a replacement employee.

Obviously, it’s less costly to hire permanent staff than those who may view your company as a short term “stepping stone” to another job. When you factor in time and cost for training and benefits, looking for candidates who are seeking long term employment is in your best interest as a business. To do this, there are some methods for identifying candidates who want to become long-lasting members of your team.

How to Identify Candidates Who Will Stay for the Long Term
If you want to hire employees who will stay on board for at least a year or more, here are some tips for recruiting and interviewing.

Request a cover letter and resume. When you are recruiting for new employees, it’s a good practice to get into requesting both a cover letter and a resume from all applicants. Smart recruiters know that candidates who are truly interested in an assignment will take the time to write a professional and original cover letter along with their resume. Those who are not worth your time will neglect to do this, or will send in a “form letter” style cover letter. Read the cover letter to gain better insight into a candidate’s intentions.

Conduct 3 interviews. Eliminate unworthy candidates by conducting a series of three interviews. The first one is a phone screening. The second is a group interview. The third is a one-on-one interview with the person making the hiring decision. This helps you to view the candidate in three different scenarios and those who are serious about the job will show up on time and ready.

Screen candidates thoroughly. Take the time to check the complete background of every candidate. This means verifying all past employment and personal references, a criminal background check, a workers’ compensation claim check, and a drug test. This can prevent you from hiring someone who is not up to your company standards and could cost the company in termination fees.

Hire for role and cultural fit. Once you have a couple of candidates who have passed through the above steps, take a careful look at where the candidate is in his lifestyle and career needs. Candidates in their mid-level career tend to settle down into jobs for the long term vs. entry level or senior level candidates who may leave sooner. Make sure your new hires fit in with your current workplace culture and teams.
As you start recruiting for new employees, take the time to understand more about your existing talent pool and what characteristics your most loyal employees have. This can help you find more long term employees to help grow your business.

This post was written by Steven Burrell whose contribution is greatly appreciated. 
Steven enjoys writing about different strategies and methods for effective employee assessment. He also enjoys spending time with his family, as well as a good book.

1 comment:

  1. I know a lot of organisations who could benefit from staff who stay. Their turnover is extraordinary and it must cost them a fortune in recruitment costs.

    ReplyDelete

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