Typically, higher unemployment rates equate to better hiring outcomes. After all, a larger candidate pool should make finding qualified candidates faster and easier. Unfortunately, this doesn’t seem to be the case in today’s post-pandemic environment.
Despite unemployment rates floating around 6% in the United States and 8% in Europe, employers are still finding it difficult to attract and hire skilled workers. In fact, a recent study reveals that 70% of CEOs are concerned about the need to hire skilled workers.
Due to this growing issue, many companies are prioritising employee retention efforts, with the understanding that lower turnover leads to a decreased demand for new talent. Fortunately, our team at Randstad not only specialises in talent recruitment strategies but also provides advanced employee management solutions that can help your company improve retention rates across the board.
Here’s a look at just some of the ways support from Randstad can help you retain your top talent longer.
offer competitive salaries
In today’s uncertain economy, more and more businesses are looking for ways to slim their budgets and cut costs. You may be thinking that the last thing your company can offer is higher salaries. However, if your current salary levels aren’t competitive enough to attract and retain top talent, you may be losing more than the cost of a salary increase.
In fact, high turnover may be costing your company more than you realise. Studies suggest that it costs an average of 21% of a position’s salary to hire a new employee. This amount doesn’t even account for any downtime or overtime needs due to vacancies within the company, reduced employee morale or health and safety concerns.
The combination of these costs can provide greater savings than the cost of a pay increase. For example, our Randstad team recently worked with a processing centre company to help them increase salaries by 14.3 percent. While this may seem like a large increase in wages, thanks to our workforce solutions, the company realised a savings of $2,443.
Certainly, the right salary can give your company a competitive edge when recruiting new talent, but is it enough to prevent your top employees from leaving? Studies suggest it is. A recent employee survey shows that over 40% of workers would stay with their employer for higher wages.
boost your employer brand and reputation
While many employers have taken great strides to improve employee engagement levels, studies suggest that less than a third of the workforce actually feel engaged in the workplace. In many cases, the reason that employer’s efforts aren’t boosting employee-perceived engagement is that employers have trouble fully understanding their employee’s needs.
Our team at Randstad has noticed this employer-employee disconnect for years, which is why we offer comprehensive employer branding research and analysis services. Through extensive industry and company-specific research, we can provide valuable insights to help you better understand the needs of new candidates as well as your current workforce.
With these key insights in hand, your team will have access to the tools and data it needs to build a benefits package that not only attracts top talent in the industry but also entices your current workers to stay longer. This, in turn, can help to boost employee engagement, enable your business to build an employer brand that drives results, and improve the company’s reputation with former, current and potential employees.
In addition to lowering turnover rates, improved employee engagement levels have also been known to increase productivity and reduce absenteeism and safety issues. According to one study, companies with high engagement levels are more than 20% more profitable.
improve onboarding efforts to speed up acclimation
Studies suggest that employees are most likely to quit during the first three months of employment. This fact means that you could end up spending over 20% of the position’s salary to hire an employee just to have him quit a few months later. This level of turnover can ultimately cost your company thousands or tens of thousands of dollars every year.
The good news is that there seems to be a direct link between onboarding and improved new hire retention rates. In one recent study, half of the employers surveyed recognised an improvement in retention rates among new hires after implementing a structured onboarding process.
For best results, onboarding should begin on day one, as in the day the new hire accepts the position. This step might include a simple welcome letter that contains more information about the company and workplace culture or require the employee to complete new hire paperwork. Once the employee is on the job, there should be a comprehensive onboarding process that highlights company values and helps to acclimate the new hire as quickly and efficiently as possible.
Randstad is equipped to handle the entire onboarding process. However, we understand that every company has unique pain points and requirements. Therefore, we offer customised solutions that give you the freedom to determine which parts of the onboarding process you want our team to handle and which parts you want to keep in-house.
No matter what level of direct services your company needs, we can work with you to develop an onboarding process that improves employee engagement levels, speeds up the acclimation process and entices your new hires to remain past the coveted 90-day period.
hire the right talent from the start
One of the best ways to reduce turnover rates is to hire the right talent from the start. Consider all the time and money you invest into recruiting and onboarding new hires. The last thing you want to do is wait until the onboarding process is over to realise that the new hire is not a good fit for the position or the company.
You can improve hiring outcomes by creating a more stringent hiring process. At first glance, it may seem counterproductive to develop a more selective hiring process, when you’re having trouble finding skilled workers. However, the alternative is to remain in the never-ending cycle of high turnover and poor performance or risk hiring toxic employees that drive out some of your best talent.
Unlike some of our competitors, Randstad never offers one-size-fits-all hiring solutions. Instead, we take the time to understand both industry trends and company-specific insights, including your workplace culture, business processes and hiring needs and goals.
We use this valuable analytical data to develop a stringent hiring process that not only attracts skilled workers, but also identifies which candidates are a good fit for your company and the position. This process, in turn, results in better hiring outcomes, including retention rates.
utilise comprehensive workforce management solutions
When you partner with Randstad, you can depend on our team to handle the day-to-day responsibilities of workforce management. Our team consists of a commercial manager, process manager, and account specialist as well as access to our support team of legal, compliance, and health and safety experts. You will also have access to our onsite consultant that can handle various issues throughout the day and provide professional guidance as needed.
Our team can handle everything from recruitment and selection to onboarding and induction to shift planning and forecasting. We’ll work directly with you to determine which aspects of workforce management you want our team to handle.
Allowing our team to be responsible for some or all these tasks will give your in-house team more time to focus on building employee relations and strengthening your company culture. Ultimately, a partnership with Randstad can help your company realise:
- improved retention rates
- increased productivity
- decreased turnover
- reduced absenteeism
- greater cost savings
- more profitability
If your company is struggling to find the skilled workers it needs to remain productive, prioritising employee retention can be an effective solution. Find out how Randstad helped one company improve overall retention rates while lowering workforce costs at the same time.