The Value of Investing in Retaining Employees for Business Growth
If you run a small- to medium-sized business, you know the importance of hiring the right person for a position – and matching the right position with the right person. While it’s difficult to assign a specific number to the cost of turnover, experts estimate it to be around 150 percent of the employee’s annual salary. Bottom line? Retaining employees is critical for the health of your business. In fact, it’s likely the talent you need is already at your workplace, today … especially if you’ve matched the right person with the right position.
Rehiring and retraining any employee is expensive. However, when it comes to sales or management positions, the cost of rehiring may be even higher. Considering the number of missed opportunities that can occur when a sales position is waiting to be filled, the impact can be quite significant. These missed sales are part of the “opportunity cost” of rehiring.
How Can You Avoid These Costs and Missed Opportunities?
You need a strategy in place for hiring quality talent that is the right fit for your company and the positions you have open. It’s not enough to judge from a resume and a gut feeling to secure the right candidate. You can probably think of at least an instance or two where this may have led to some turnover.
Instead of spending a lot of money to replace the wrong person, it’s important to invest in the hiring process and get the right person in the right role. If you have identified a position in which you currently have a poor fit, there you may want to consider a strategy that retains employees and reorganizes their talent for better performance.
The Strategy: Enter Behavioral Assessments
Behavioral assessments are a way for you to unlock the motivations, drives and tendencies of your candidates. It’s a way to harness extensive data on your candidate to see how they will fit in the position and with your team. While a person’s resume might tell you that they consider themselves as team players with a high level of attention to detail, a behavioral assessment will give you the ability to predict how they will behave in a high-pressure team situation or while working on a critical report to be delivered to your board of directors.
Take the Emotion out of Your Decisions
You may be used to relying on your feelings to help you choose the right candidate, and that’s a lot of pressure. With a behavioral assessment, you add a data-based component that gives you solid information about how your candidate will perform in a position.
Likewise, retaining talent among the team you already have may mean it’s time to evaluate the employee’s strengths through a behavioral assessment. Even if an employee is struggling in their current role, they may be a perfect fit for another position. Retaining employees and evaluating where their strengths match with existing positions can save your company significant resources – and truly boost performance.
Don’t Assume You’re too Small for Behavioral Assessment
You may have heard about behavioral assessment before, dismissing it as something that large companies use. Big companies do use behavioral assessment, but it may be even more critical for smaller companies. When you consider that in a time of turnover, bigger companies can absorb the work and cost of rehiring more easily, it demonstrates the importance of behavioral assessment as a tool for smaller companies, also.
Want to know more about behavioral assessment and how it can help you with retaining employees or maximizing current employees’ strengths? Contact us at PI Consulting Group. The PI System sends the message that you care, with a sophisticated plan for who you hire and the position in which they are placed. We look forward to talking with you about your plans to grow your business with a strategic talent plan.