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Employee turnover is costly. But exactly how costly?
According to the Huffington Post, Josh Bersin of Deloitte estimates “…the cost of losing an employee can range from tens of thousands of dollars to 1.5–2.0 times the employee’s annual salary. These costs include hiring, onboarding, training, ramp time to peak productivity, the loss of engagement from others due to high turnover, higher business error rates, and general culture impacts.”
Although the actual costs are dependent upon the job and industry, the fact remains employee turnover is undesirable and a detriment to a business’ bottom line.
So, what can companies — and your club — do to lower their employee turnover rate? According to Simon Sinek in his book “Start with Why,” hiring successfully begins with the job post.
As Sinek explained, hiring managers are going about creating job postings incorrectly. “We provide a list of qualifications for the jobs and expect that the best candidate will be the one who meets these requirements.”
This is a flawed assumption, said Sinek. “The issue is how we write those ads. They are all about WHAT and not about WHY. A want ad might say, for example, ‘Account executive needed, minimum five years’ experience, must have working knowledge of industry. Come work for a fantastic, fast-growing company with great pay and great benefits.’ The ad may produce loads of applicants, but how do we know which is the right fit?”
Another problem with this ad is it could apply to jobs at pretty much any company in any industry. Instead, employers must focus on WHY the job exists and find employees who buy into that WHY. Said Sinek, “Starting with WHY when hiring dramatically increases your ability to attract those who are passionate for what you believe. Simply hiring people with a solid resume or great work ethic does not guarantee success. The goal is to hire those who are passionate for your WHY, your purpose, cause or belief, and who have the attitude that fits your culture. Once that is established, only then should their skill set and experience be evaluated.”
So, the next time you go to post a job, don’t emphasize WHAT the job entails and WHAT qualifications are required. Instead, emphasize WHY the role is important and how it supports the WHY of your organization.
Doing so should increase the chances of you finding the right fit for open positions and lower employee turnover — saving you money in the long run.