One of the biggest challenges facing customer driven businesses is attracting and keeping quality new hires. In the post-pandemic world, labor pools have shrunk and good candidates are even in shorter supply. A recent study by Gartner paints a grim picture, suggesting that 51% of potential new hires decline offers or don’t even respond to offers, known as ghosting. The situation is even more difficult once a candidate is hired with the potential of leaving the job right after the hire or during training. Small and medium sized businesses that rely on customers for revenue cannot afford to make mistakes when extending job offers and hiring the right person the first time is critical for controlling costs and eventually driving profitability. Eliminating ‘churn’ starts at the very beginning of the hiring process as internal systems and culture are usually the cause.
It’s a Tough Job But Someone Has to Do It
There was a time where younger people would look forward to that entry level job where they could make some money, gain some experience and learn a new business. Today’s environment has changed drastically and hiring for entry level jobs has become ultra competitive, but unfortunately for the business needing the hires, not the candidates looking for work. Frontline staff may be eager to say yes to an offer, but chances are, they may not work out or may leave on their own shortly after getting hired, wasting valuable time and resources for the business. But why do new hires ‘ghost’ employers or leave during training? One of the major causes is transparency. New hires may have the wrong expectations about the job and could become disillusioned early on. Expectations about compensation, schedule and workload are the top 3 considerations when it comes to staff ‘churn’. Managers and supervisors that rush through interviewing and hiring are also a major contributor to early turnover. Potential candidates that do not match the ethic and culture of the business and existing team will never work out and will eventually affect the organization’s bottom line.
Other important factors that cause new hires to leave:
- Lack of confidence or organization from management teams
- Offers and workloads that are non-competitive with local markets
- Inadequate training or preparation for the job
Small and medium sized businesses are feeling the crunch when it comes to hiring and deploying frontline staff but the urge to cut corners in hiring and training will only end up costing the business in the short and long term.
Thinking Big Picture Means Thinking Longer Term
Bringing in a new person and transitioning them to the job is costly and time consuming for organizations. In addition to marketing the job, time has to be taken to thoroughly review resumes and applications, schedule and perform interviews, conduct reference and background checks and finally assemble and present the offer. After all that, then the candidate can spend time training which means more non-working hours and time away for managers to mentor and evaluate new hires. All this effort translates to costs for the business while the new hire works toward maximum productivity and efficiency. Candidates that do not respond to job offers or leave the job during draining means the whole process has to start over and the business incurs even more costs. Small and medium sized businesses must embrace long term thinking when filling roles within the organization. New hires that exhibit ‘long term potential’ may learn the business faster and could begin contributing to the bottom line sooner. Tenured workers are also better at solving operational and customer service problems as they understand the business in detail.
A Strategy for Keepers
Attracting quality candidates can be challenging but putting certain strategies in place can increase the chances of that perfect employee walking through the door. It starts with an internal look at the business. Defining the organization’s culture and business priorities from a personal perspective will provide valuable information to managers and others involved with hiring frontline staff. Spending some time researching similar opportunities can reveal market compensations, schedules and work expectations.
Other strategies for attracting and keeping the best people:
- Create an internal job description that goes into detail and lists all the ideal characteristics of the perfect new hire
- The interview process should be defined with at least 2 interactions with the candidate
- Structure interviews so that the candidate does most of the talking
- Set defined expectations for workload and communicate these during each interaction with the candidate
- Highlight the culture of the business so the candidate understands the expected work ethic
- If possible, discuss compensation early on as this may be a dis-qualifier for some job seekers
Staring off on the right foot starts with the application process and sets a positive and enthusiastic tone throughout the hiring and training process.
The Bottom Line
Customer driven businesses depend on frontline teams to drive profitability and control costs but the post pandemic labor market is a tough one. Attracting, hiring and retaining quality people is one of the biggest challenges facing small and medium sized businesses as the pool of quality candidates continues to shrink. High turnover, low retention and ‘employer ghosting’ increases costs and reduces efficiency and profitability. Organizations that adopt a longer term outlook when it comes to hiring will see a positive impact on the bottom line. Good interviewing and a defined hiring strategy will put managers in a good position to hire and retain those sought after quality candidates. Understanding the organization’s internal culture and work ethic will also create a more retention-friendly work environment. A highly experienced and skilled frontline team is essential to the success of any business that depends on customers.