2021 was a unique year for businesses. Usually finding staff can be a challenge, but recently it’s been unbelievably difficult. With government subsidies there are those that don’t want to work since they feel it’s not worth their while. Others have had to move out of town, or the country for various reasons; pandemic requirements, family, and personal wellness.
As businesses struggle to find staff there is not really an end in sight. Companies large and small are offering bonuses or additional subsidies to entice workers to return. As subsidies end hopefully that will provide motivation for employees to seek employment once again.
Interviewing
One of the keys to hiring is ensuring that you retain staff once hired. The average employee exit costs 16% to 213% of their annual salary depending on their pay. (Source) There are approaches you can take when hiring to ensure you get the right candidate in the first place. We recommend a 3×3 Interview Method that involves three interviews, three different people, in three different environments (one of which could be virtual). It’s very effective. Have a setting that might not be expected such as a shop floor, light lunch, or team event. It’s not about throwing them off their game, it is about seeing how they react in different, or unexpected circumstances. In a setting that they are not as familiar with, a candidate may say or do something, you may not typically uncover, that doesn’t fit your personal or organizational values. Anyone can interview once, even twice well, but three times may show the cracks in their armour.
Onboarding
Once you find the right candidate, ensure that you have a great system for onboarding. Include staff and others in the conversation, and the onboarding process. A new hire needs to feel that they’re part of your culture as soon as possible. The first real experience new hires have is their orientation. It pays to make a good first impression. Getting to know team members is part of this. Organizations with a strong onboarding process improve new hire retention by 82% and productivity by over 70%. (Source) People want to do a good job, especially as a new hire. Having the right onboarding system in place will ensure this transition is successful for all involved.
The Path Forward
Once hired it is important to train, support, develop and recognize employees for their work. It is often suggested that millennials prefer the flexibility of a workplace, enjoyment of their work, and value acknowledgment for accomplishments even somewhat above financial compensation. Having systems in place that staff can follow lets them know that you’ve got a plan. You are taking your business seriously. Staff that are inspired, motivated, and recognized can take your business to the next level. Employees whose managers consistently acknowledge them for good work can reduce turnover up to 31%. (Source)
If this pandemic has taught us one thing it’s that certain workers like the flexibility of being able to work remotely, even if it’s not all the time. Companies that provide the option for remote work have 25% lower employee turnover.
Always make sure you have the right people in the right positions. Be slow to hire, and fast to fire. If someone is not right for the job it’s no good helping keeping them around. A bad seed could dishearten others, especially your top performers. It is in your organization’s best interest to do what it takes to keep your staff happy. It may take effort, time, and money but it’s all worth it in the end.
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