Learn how to measure and save on these costs with our Recruitment & Retention Savings Calculator
As the digital revolution and disruptive nature of technology is transforming our world, the ever-rapidly rising pace of change is reshaping the workplace. Portfolio careers are becoming increasingly common as employees spend a shorter amount of time per job to hop to another one – the average employee today stays in their job for 4.4 years but Millennials expect to stay for less than 3 years, which adds up to 15-20 jobs in their lifetime1. Finding and retaining the best people is harder but more important than ever.
Your people are the most valuable assets to your organisation. So, a question that every company should be asking themselves is: How much does employee turnover and recruitment really cost in my organisation? Employee turnover is expensive, averaging to over £30,000 per employee2. Measuring the impact of losing good employees and recruiting new ones is critical to your business.
The first step to reducing employee turnover and saving on recruitment costs is to measure it and identify the key pain points to start addressing. The challenge that organisations face is that many do not have a framework for quantifying this cost and may not even be aware of just how many factors play a role in this. Measuring and tracking the costs associated with attrition and selection is a time and resource intensive activity but, most importantly, so is identifying the next steps and implementing solutions to address employee churn.
How can Thomas help you?
To take the pain out of calculating complex HR metrics, we’re launching our new Recruitment & Retention Savings Calculator to help you with this! This easy-to-use calculator provides you with standardised but accessible metrics for measuring your recruitment and selection costs. It automates the process for you by tracking every step of the attrition and recruitment process. We can then help you identify your key pain points and design and deliver solutions to address them.
From high employee turnover rates, inefficient screening and selection processes or long and costly training and onboarding stages, it all comes down to having a better understanding of your people – their strengths, development areas and future potential and what keeps them engaged and motivated at work. For example, in order to address high turnover rates, consider your talent management strategy and what you can do to enhance employee engagement and productivity. A great way to streamline your recruitment process is to have a clear understanding of ‘what good looks like’ in your organisation and in specific roles. By tracking the costs of turnover and recruitment over time, you can keep them down!
Who is the calculator for and how can you use it?
Whether you’re a senior manager considering the overall financial strategy of the business, an HR professional responsible for recruitment and selection and their associated costs or a stakeholder interested in understanding these costs, this tool will be available for you soon!
Just plug in the relevant values for your organisation for each field that we've broken down the recruitment process by, save your results and see how much your current recruitment process is costing you. This can be used to support your strategic thinking around employee engagement and turnover and use it to track your costs over time to verify your strategies.
Start measuring and tracking your costs and see how much money you can save over time so you can invest in and grow your organisation’s most essential asset: your people.
1 Meister, J. (2012, August 14). The Future Of Work: Job Hopping Is the 'New Normal' for Millennials. Retrieved September 19, 2017, from https://www.forbes.com/sites/jeannemeister/2012/08/14/the-future-of-work-job-hopping-is-the-new-normal-for-millennials/#4a82cef013b8
2 The Cost of Brain Drain. (2014, March 3). Retrieved September 19, 2017, from http://www.oxfordeconomics.com/my-oxford/projects/264283