Recruitment And Retention: Keep Employees You Want, Hire Those You Need

Unfortunately, the adage, “good help is hard to find,” is more fact than fiction. Each year, companies deal with employee turnover. Although many people seek new jobs, only a handful of workers are typically qualified and dedicated. To avoid employee turnover, keep key employees at your company and, if necessary, find new employees to fill vacant spots, consider the following guidelines on how to maintain and build a strong workforce.

According to the April 2006 article, “The Long Haul” by Mark Henricks, Entrepreneur magazine and PricewaterhouseCoopers' first annual "Entrepreneurial Challenges Survey" found that entrepreneurs said employee retention was “the single most important critical factor of business success in 2006.”

Henricks cited Greg Smith, a Conyers, Ga., retention consultant, who said "It costs about two and a half times a person's annual salary to replace them. And the more talent a person brings to the company, the more expensive that person becomes to replace."

“High turnover can also affect marketplace perception, employee morale and productivity, and a host of other factors,” Henricks said.

Why do employees leave their jobs? Here are the main reasons, according to the article “Retention 2010: How to Keep Good Employees in a Tight Labor Market” by Teresa J. Rothausen-Vange, Ph.D.:

1. Executive team leadership
2. Executive ethics
3. Facilitation of their careers
4. Company culture

- These results are that of a survey Rothausen-Vange completed.

Notice how salary wasn’t the number one reason? Employers should focus on training bosses how to be tolerant and patient when it comes to employee requests and to listen to employees’ needs and suggestions.

Keeping an open environment where employees and bosses can collaborate may be what your teetering employee needs to stay. Sometimes, however, your best efforts to keep an employee fail. So, how can you go about recruiting new employees?

First, think about where you will find new employees. Great employees don’t fall from the sky; they are found through searching various avenues. An effective way to start your search is by using networking connections you already have. The different networks you have in your daily life, such as friends, employees and customers, are useful places to look. One effective way you can find recruits from employees is by compensating them for their suggestions. The eHow article “How to Network to Recruit Employees” suggests this tactic. “By creating a bonus system that rewards staff members who successfully identify qualified candidates, you can tap into an existing network of people who know your business the best.”

Using friends and customers is beneficial because many times they have relatives or acquaintances who are perfect candidates for the position you need filled.

Still need more applicants? Consider looking at current resumes and posting your job opportunity on Internet job boards, and going to college campuses.

According to “Top Ten Recruiting Tips” by Susan M. Heathfield, Internet job boards typically have many “potential candidates who may have resumes online even if they're not currently looking.”

While looking for new employees on college campuses is an old idea, it is still great because it allows you to introduce yourself and get to know the people who will soon be entering your field of work.

Although your first desire as an employer is to retain the employees you already have, there are ways to find great and sometimes better replacements. Understanding the importance of employee retention and recruitment will help your company succeed.