The Cost of Poor Retention and Employee Turnover

Hiring new employees can be a long and laborious exercise. With so many candidates in today’s job market, hiring pools today are of a size that far exceeds what human resource professionals saw in the earlier part of the decade.

While it is important to hire the right candidate for the job, and to trust that their skills and personality are a good fit, it is equally important to trust that they are invested in staying with your company for long after they have been hired. The costs associated with hiring new candidates can quickly amount, and hiring the wrong candidate can land a company back at square one.

Employee turnover can cost upwards of 150% of the lost employee’s annual compensation, depending on the time taken to hire and train a new recruit, and then get them up to speed. A new employee’s productivity will typically take half a year of experience to grow to capacity. An empty seat is lost revenue for any company, and the investment in finding the right person to fill a position can be substantial.

The time needed to train a new recruit until they are ready to work independently results in money lost through lack of peak productivity. Likewise, while a new employee is in training, more experienced staff must pick up the workload, cutting into their productivity and company profitability. Managerial staff also face the burden of dispensing tasks to a limited workforce to assure everything is done on time.

These issues are all compounded with each new staff member who leaves the company and contributes to increased staff turnover. Employee turnover cuts into the bottom line and is to be limited by any means possible.

A successful approach to increasing the return-on-investment (ROI) on new staff is a comprehensive pre-employment screening program. Verifying the ability, demeanour, and flexibility of new staff prior to their hire ensures that the successful candidate will do well in a given organization.

Furthermore, pre-screening candidates acts as a deterrent to those who have little interest in a fulfilling relationship with their employer. Such a policy also provides peace-of-mind to staff in their work environment, bringing an easy trust and improving the ability to work as a team.

A large hiring pool makes comprehensive in-house screening a timely chore. Numerous companies have seen great benefit in outsourcing their pre-employment needs. Partnering with a third party provider is a cost effective means of quickly and securely procuring the information your company needs to hire an apt and committed candidate.

BackCheck provides a number of resources for our clients to utilize in hiring the right candidate. As a third party provider, ours is not to make any decisions, rather to provide the information necessary to shrink a hiring pool quickly and simplify your choices. With over ten years in the industry and more than 2 million candidates screened, BackCheck has the capacity and competence to meet your organization’s needs. Mitigating regretful hiring decisions with a forward looking risk management approach is a prudent choice for your successful future.


Do you know who you're hiring?