Employee Turnover
Employee turnover is the term applied to the cycle of hiring and firing that happens within companies. A company is said to have high employee turnover rates or “employee churn” when their employee routinely leave or are fired, necessitating the hiring of more people to fill open positions. When some employees leave and new hires take their places, the employees turn over within the position, hence the term turnover. While turnover is not a favorable condition for many businesses, it can certainly keep recruiters and human resources professionals busy.
The High Cost of Turnover
Employee turnover is very expensive for companies because they are constantly spending money recruiting, screening, interviewing, hiring, training and administrating new employees. It can also be tough for companies to operate efficiently when they are working with a constant stream of untrained employees. While the company may save a little on each employee if they leave before they can receive benefits from the company, the costs associated with finding a new person for the position as well as the work that goes undone while the position stays open far outweigh those savings.
Turnover’s Effect on Recruiters
On one hand, high turnover rates can be beneficial to some recruiters because it allows them to constantly pull from their talent pool and fill positions. However, recruiters also want their new hires to be happy in their jobs and stay with the company. A recruiter that places a lot of candidates may look successful on the surface, but if these new hires are leaving their positions six months later, it is a not a real indicator of success. Recruiters need to reduce turnover in order to help their clients reduce labor costs and make sure that their new hires are happy in their positions. Internal corporate recruiters are often bench-marked against employee turnover and retention metrics. Agency recruiters of course many times lose their recruiting fees if the candidate leaves within six months from their start date.
How Recruiters Can Reduce Turnover
Because turnover affects both a client’s bottom line and a recruiter’s reputation, it can be important for recruiters to work with their clients to reduce employee turnover. An employee’s success and job satisfaction reflects back on the recruiter who found them a job, so the recruiter should work to make happier employees who will stay in their current positions. Reducing turnover begins when the recruiter first consults with the client about the position. A recruiter should talk with current employees about their work environment so that he or she can adequately screen and prepare applicants for the job. The recruiter should also work with candidates to make sure that the position will meet their employment leads and fit within their chosen career path. By examining both the needs of the company and the needs of the candidate, a recruiter can better match the candidate to the job and reduce employee turnover.