The Next One’s Gonna Cost You: Pre-screening for Better Employee Retention

A happy employee

What is the cost of firing and hiring an employee?

While decades ago many people stayed with one company for life, raking in the benefits offered to them from long years of loyal service, that is almost entirely gone now. Few jobs offer health benefits or pension plans, and many offer low wages, meaning that employees have little incentive to stick around. It is the age where employees are viewed as replaceable, and are often replaced, rather than being viewed as potential assets to the company. However, there may be more benefits to keeping employees, rather than simply replacing them at will, for cheaper if possible. Here are some of the benefits of cultivating long term relationships with employees.

The Costs Of Letting An Employee Go

If a business does not cultivate employee retention, it may find itself paying the high costs associated with firing and hiring new people every few weeks or months. This can take a huge toll on the bottom line over all, making pre screening a necessity. Hiring the right people is key for any successful business. Here are some of the costs that come with letting an employee go.

-HR staff time for their exit interview, payroll, administration, and more

-Manager’s time for retention attempts and exit interview

-All of their paid time off

-Temporary coverage costs

-All that you spent training them is wasted

-Potential competition increase as employee moves to rival company or forms own business

-Any others who may be inspired to leave or follow employee to new organization

The Costs Of Hiring Someone New

While retraining everyone may seem expensive, firing an employee and replacing them is even more expensive, making employee retention an important part of any surviving or successful business. If the right people are chosen from the start, all of this retraining, hiring, and firing, will be less of something you have to worry about. Here are some of the many costs of a new hire.

-New hire’s wages

-Hiring inducements, signing bonuses, relocation reimbursement, and other perks

-Hiring manager’s time

-Getting them acclimated and any orientation costs

-HR staff induction costs

-Disruptions in productivity and customer service as they learn the ropes

-Any clients that may have left with your employee  

Employee Retention Is Good Business

While a new hire involves all of these costs and then the cost of training, retraining employees you already have involves only the cost of training them with none of the extra stressful or costly variables.

ENSURE EMPLOYEE RETENTION WITH AIR PRE-HIRE

AIR Pre-Hire in Reisterstown, MD, conducts accurate and verified universal background screening, so you will have thorough background checks on your employees. Here at AIR Pre-Hire we don’t simply check the basic information, we dig deep to identify inconsistencies and make sure your potential employees (as well as existing employees) are acceptable for hire. This is the human element of our custom pre-screening service. You can count on us for timely, verified pre-screening and employee re-screening.

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