Employee Retention

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How to Measure the Quality of Potential Employees

How to Measure the Quality of Potential Employees 1016 528 Sprockets

Hiring new employees is a time-consuming and expensive task for any employer. Nothing is more frustrating than when new hires leave after just a few months on the job. All the effort and resources that went into hiring, training, and onboarding the employee have now gone to waste. 

This problem has raised the awareness among recruiters and HR departments about the quality of hire. A concept that has gained traction in the last decade, 39 percent of talent scouts consider the quality of hire to be the most critical performance metric. Let’s dig a little deeper to learn how it can help your employment practices.

What Does Quality of Hire Mean?

Put simply, quality of hire metrics measure the value that an employee brings to the company. With new hires, the goal is to assess the employee’s potential contribution over the long term. It attempts to answer key questions, such as will new employees bring value to the work? Will they be compatible with the company values? Will they work well with other team members and fit the company culture?

Perhaps the biggest question of all is what does quality of hire mean? This is open-ended. It can mean different things to different companies. Each company has unique needs and, therefore, will have its variables in the quality equation. Some of the common indicators include the following:

  • Employee Retainment: The longer an employee stays, the more value they’ll bring to the table. 
  • Employee Task Performance: Performance reviews play a key role in assessing an employee’s contributions.
  • Employee Accomplishment: Do employees achieve their goals and tasks on time?
  • Employee Time to Value: The amount of time it takes for an employee to be fully onboarded and trained is an early sign of potential value.
  • Customer Satisfaction: Do they go above and beyond for the consumer and add value to your customer satisfaction?

Sprockets has developed an innovative method to determine which quality indicators are suitable for your company. Choose your top employees and administer a personality assessment test. With the results, Sprockets generates a Mental Makeup Analysis report. The MMA report identifies the top five qualities of your best employees, providing you with a quality template for future hires.

Why Is Quality of Hire Important?

The process of determining quality of hire metrics may seem time-consuming and irrelevant. However, the real delay in the hiring process is constantly posting the same position on job boards because you can’t find a good fit. In addition to improving your employee retention rate, a quality hire can provide the following for your workplace:

  • Strengthen and enhance company culture
  • Improve strategic hiring decisions
  • Get quantifiable outcomes of your recruitment technology
  • Gain insights into the candidate experience
  • Increase competitiveness in attracting talent to your company

Quality of hire benefits the long-term growth of a company. A workplace full of long-term employees committed to and invested in the company’s future raises job satisfaction and stimulates and fosters creative, synergistic growth.

How Do You Measure Quality of Hire?

While each business can develop its own method for measuring quality of hire, a recommended formula has gained traction. Hire by Google recommends adding your key indicators together, using the indicators from your MMA report, divide by the number of indicators, and then multiplying by 100. For example, add the scores for employee task performance, employee accomplishment, and customer satisfaction together, divide by three, then multiply by 100 to get the quality of hire percentage. 

But how can you compare this percentage to your job candidates? This is where artificial intelligence comes in handy. Sprockets has developed a powerful software tool that matches the applicant pool to your benchmarks. With the information you gained from the MMA report, you can utilize the matching software to find candidates with similar industry knowledge, skill set, work ethic, etc.

With the aid of these tools, measuring the quality of hire becomes a scientific process that gives you measurable results. Defining quality is always a subjective endeavor, but the MMA report and matching software from Sprockets provide the standard of uniformity needed for reliable results.

Start Improving Your Quality of Hire Today

Someone on a laptop screening high quality candidatesWhen starting to measure the quality of potential employees, it’s important to talk to the stakeholders. Open conversations with long-term valued employees about retention, the company culture, and other topics that influence new hires. Let them know that you value their input and honesty to help you build a complete picture of the business. 

Recruitment platforms like Sprockets can help you find quality hires. Sprockets uses AI-powered applicant matching solutions to help find the best personnel for your company. 

Schedule a demo today and learn how Sprockets can be integrated into your recruitment process to find quality hires.

People in an interview with text reading "4 Myths About Attracting and Retaining High-Quality Talent"

4 Myths About Attracting and Retaining High-Quality Talent

4 Myths About Attracting and Retaining High-Quality Talent 1016 528 Sprockets

Are you struggling to find and retain quality candidates for your franchise? It could be because you are still hanging onto some outdated hiring myths and not utilizing digital hiring solutions.

In the same way that outdated technology affects your productivity and efficiency, stagnant recruitment practices affect the quality of applicants you attract. These outdated practices also increase your staff turnover rate. Here are four myths you need to forget in order to attract and retain quality talent.

1. The Best Talent Must Have Years of Experience

Many recruiters insist on hiring experienced candidates over those with high potential but limited industry experience. Skilled workers may be hard to retain since your competitors may also be interested in hiring them. Here are some reasons why you should consider hiring quality workers with minimal industry experience:

Inexperienced Workers Are Moldable

Inexperienced workers can be molded and trained more easily since they have not yet developed their own work habits. In a highly unpredictable business environment, new talent may respond to change more positively and adapt quickly. They may also be more willing to seek new solutions, embrace new opportunities, and multi-task.

They Have More Potential for Growth

You can identify staffing gaps in your business and train new hires to fit in that role. You may be surprised how loyal unexplored talent can be if they see the potential for growth in their job.

They Are Passionate

Unlike experienced workers who might feel there is nothing new to learn, new talent typically has an appetite for knowledge. Newer hires that integrate well with the team and believe in the product and service will also want to stay longer to gain more insights into the position.

2. A Resume Says Everything About a Candidate

There are soft skills that you cannot read on a resume. For instance, a resume will not demonstrate an applicants’ interpersonal or communication skills or his or her level of respect and confidence.

During the pre-screening process, you can learn a lot about a candidate and his or her personality by asking the right questions such as what do you least like about your job and why, how do you like to be managed, and what type of work do you enjoy doing the most. Most of the time, such information about a candidate’s character can’t be uncovered by only viewing a CV/resume. Therefore, it’s important that hiring managers avoid basing their judgment solely on a candidate’s CV/resume.

3. Hiring Managers Know How to Hire

You could be missing the right talent because your hiring managers are relying on their gut feelings and their experiences can make them biased.

Train hiring managers to apply the best practices in hiring to achieve objective results. It is important to equip your hiring managers with practical interviewing skills which can help attract higher-quality candidates.

4. You Should Only Recruit When You Have an Opening

If you only post job advertisements for open positions, you could be missing out on great applicants. One of the digital recruitment trends is to stockpile great talents even if you have no open jobs at the moment.

Once you find a quality candidate interested in working for you, hire them and create the position. These talents are in high demand, and you may not find a hire when you need one.

Effective Digital Recruitment

Digital recruitment can make hiring easy, inexpensive, and fast. Here are some digital recruitment strategies you can use to make hiring more effective, affordable, and efficient:

Use Pre-Employment Assessments

A candidate’s CV and cover letter say a lot about the applicant but not everything. To assess the candidate further, send them a pre-employment assessment test. Sprockets’ pre-employment test identifies applicants with similar personality traits as your top performers to ensure only smart hiring decisions are made.

Consider High Potential Candidates Have Some Shortcomings

A high-quality candidate may be a person living with disabilities or may come late for the interview. Give such candidates a chance, and they may surprise you as quality hires.

Prepare to Train-on-the-Job

Rather than spend time waiting for the perfect candidate, hire the one with related skills and train them on the job. This will help speed up the digital recruitment process.

Use Technology to Assess Candidate Suitability

Someone on a laptop screening high quality candidatesSprockets’ sophisticated software helps you build a harmonious workplace where quality talent longs to work. Our AI-powered platform augments your sourcing and screening efforts to ensure you always hire applicants who are the precise fit for your needs. You’ll save time, increase retention, and improve company culture.

Contact us now and let us help you identify quality hires with the ideal characteristics so that you can hire more effectively.

A woman on the phone with text reading "Maintain Healthy Staffing Levels With a Virtual Recruiter"

Maintain Healthy Staffing Levels With a Virtual Recruiter From Sprockets

Maintain Healthy Staffing Levels With a Virtual Recruiter From Sprockets 1016 528 Sprockets

Despite the high rate of turnover in the QSR industry, GMs are afforded little time for hiring crew members who are the precise fit for their needs. Luckily, a Sprockets Virtual Recruiter can quickly stabilize staffing levels and take pressure off of managers so they can focus on the daily operations of their business. A member of our team will recruit hourly workers, contact potential hires, re-engage past applicants, and improve employee retention. You’ll never miss out on a high-quality hire again!

Increase Applicant Flow

Your Virtual Recruiter makes it easy to post jobs on Snagajob, ZipRecruiter, Adzuna, Upward, and more for free. Plus, they’ll routinely re-engage previous applicants to capture their potential interest again. So, you always have a healthy flow of applicants to choose from whenever an employment opportunity opens up at your location. That means less time and money lost due to turnover. It’s a win-win for applicants and employers alike.

A phone with a pop-up that reads "Ideal Applicant Found"Reduce Applicant Response Time

You never have to worry about constantly checking job sites or reviewing resumes again. Your Virtual Recruiter will monitor submissions, evaluate applicants, and immediately alert you whenever they identify someone who would be a good fit for your team. GMs can focus on important day-to-day operations and schedule interviews with the click of a button to keep applicants engaged and interested in the position at your company.

Improve Employee Retention

Best of all, our AI-powered platform is proven to improve employee retention by an average of 43%. The Sprockets software creates a unique success profile for your individual location based on the mental makeup of your top employees. It then uses that as a benchmark to find future applicants with similar characteristics. 

Job seekers simply fill out a brief, three-question survey when they apply, and you see their “fit scores” in your Sprockets dashboard along with the automatic alert. It empowers you to hire the ideal applicants every time, ultimately reducing costly turnover.

Get Your Virtual Recruiter Today

What was once too good to be true is now a reality. You can get a dedicated member of our team to drastically increase applicant flow, reduce response time, and improve employee retention while you and your GMs focus on other aspects of the business. Schedule a brief demo today and see how a Sprockets Virtual Recruiter can help maintain healthy staffing levels for your business.

A team of employees with text reading "The Best Ways to Reduce Employee Turnover"

The Best Ways to Reduce Employee Turnover

The Best Ways to Reduce Employee Turnover 1016 528 Sprockets

Employee turnover results in significant costs to businesses, including anything from a severance package to the time spent hiring and training the new employee. Therefore, any reduction in turnover will greatly improve your long-term financial situation and success, no matter what industry you’re in. While there’s no perfect “fix” to completely eliminate the inevitability of turnover, we created a list with some of the best ways to reduce employee turnover. Take a look and start improving your retention!

9 of the Best Ways to Reduce Costly Employee Turnover

Hire Applicants Who Are a Good Fit

You can reduce employee turnover by starting at the beginning and analyzing your hiring process. People who are a good fit for your team and workplace culture are more likely to succeed and stay long-term. They’ll be happy and productive as part of your team. On the other hand, employees who don’t fit in well will not like working at your company and ultimately leave for another opportunity. Their low morale can also be contagious. While skills are important, the best hire could be an applicant with no industry experience but fits in well.

Quickly Fire People Who Don’t Fit

If you happen to hire someone who doesn’t fit well at the company and doesn’t meet expectations, it’s important to let them go early. A poor performer can be a drag on morale, slow down work processes, and negatively affect other team members. Avoid this from significantly impacting your business by quickly hiring someone else who will be a better fit.

Keep Wages and Benefits Current

It’s common and perfectly understandable for people to think about their income and benefits packages compared to what they could get at other companies. This is especially true in the digital age, with websites such as Glassdoor and Indeed facilitating comparisons. If your compensation isn’t adequate, your employees might quit and pursue positions with your competitors.

Recognize and Reward Employees

Work is often difficult and stressful. By recognizing outstanding employees and rewarding them, you increase morale and encourage a culture of meritocracy. The prizes do not have to be significant. A pair of movie tickets is sometimes enough. Also, a small trophy can mean a lot. It’s the thought and recognition that truly counts.

Offer Work Flexibility

With the health pandemic, many workers have experienced work flexibility for the first time. They will likely want to keep these new arrangements. Working from home is a huge benefit for employees. There’s no commute, which saves a considerable amount of time and gas. They can also provide childcare to their kids.

If properly implemented, many positions can be done remotely. And, even if one can’t be 100% remote, you could have occasional work-from-home days or offer flexible working hours. Your employees will be very grateful if you do your best in having workplace flexibility. 

Promote Employee Engagement

Employee engagement and well-being can affect things in the workplace, like productivity and worker absenteeism. If morale is low, there are a multitude of things you can do. Try setting up a morale committee to come up with ideas. What can be implemented will vary from company to company. Hosting events like ice cream socials and pizza parties are inexpensive yet effective ways to show employees you appreciate them. Plus, it promotes communication and team-building among crew members.

Offer Career Development Opportunities

No one wants to be stagnant in their career. This is especially true for top performers who prioritize constant improvement. Perhaps some long-time employees should look into lateral moves. No matter the task, doing the same thing for years will eventually get old. By trying something new, they keep work fresh.

One of the most basic ways to drive employee development is to conduct monthly, quarterly, or annual reviews. Also, if your budget allows it, look into offering formal education opportunities or tuition reimbursement. Mentorship can also be a great growth opportunity. This pairs a seasoned executive with a junior employee. Both can benefit from the experience. Best of all, this program does not have to cost you a dime.

Conduct Quality Exit Interviews

Your human resources employee should be well trained in giving exit interviews. Hopefully, they’ll be able to identify why the employee is leaving. This interview can be an excellent source of information on why people leave your company. For example, if many people are leaving because of low income, then you know you should probably increase salaries.

Add Sprockets to Your Hiring Process

A woman showing a laptop screen of the Sprockets hiring platformLast but not least, one of the best ways to reduce employee turnover is to hire the ideal applicants with Sprockets’ AI-powered hiring solution. Our platform creates a success profile based on your current top-performing employees and automatically assigns a “fit score” to applicants with sophisticated personality assessments. It ensures you hire the right fit for your team — every time.

Someone packing up their desk with text reading "How to Identify the Warning Signs of Employee Turnover"

How to Identify the Warning Signs of Employee Turnover

How to Identify the Warning Signs of Employee Turnover 1016 528 Sprockets

Employee turnover remains one of the most significant issues that businesses experience, especially in the restaurant and home health care industries. Turnover drains a company’s budget and time and affects overall productivity, but it can be difficult to manage.

Although there might not be a perfect solution that completely eliminates turnover, you can begin to combat the issue by learning to recognize certain red flags. Identifying the warning signs of employee turnover is essential to avoid staffing issues and ensure your business runs smoothly. It can also help you notice problems in the workplace and fix them, ultimately improving overall retention.

4 Common Warning Signs of Employee Turnover

1. Changes in Work Routines

When employees begin to miss deadlines or submit sub-par work, it may be an indication that they have started to check out. Each of us has a bad day from time to time, so you should address this issue with sensitivity to gauge the cause effectively. However, you should note apathy about missed deadlines and errors.

2. Absenteeism and Tardiness

When employees who are always punctual and never miss work start reporting to work late, leaving early, or asking for several sick days unexpectedly, something might be wrong. They could be modifying their schedule to meet with prospective employers or undergoing significant personal issues that could affect their mood. Either way, you should talk to them to understand punctuality changes and try to work with them to improve their situation in the workplace.

3. Change in Attitude 

If a team member who rarely complains starts to say negative things about their work or seems disgruntled, it could be an early sign of turnover. Their poor attitude and comments could also begin to negatively impact the rest of the team, ultimately reducing productivity and company culture.

4. Low Engagement

When friendly and talkative employees suddenly stop engaging with other workers, it could be another red flag. Breaking routines and leaving acquaintances and friends is one of the hardest parts people experience when leaving a company. Therefore, when you notice that employees have begun to pull away and remain quiet, they might be preparing to leave.

Reduce Costly Employee Turnover With Sprockets

A woman showing a laptop screen of the Sprockets hiring platformAnother major step toward improving retention is to implement Sprockets’ AI-powered solution to your hiring process. Our sophisticated software creates a unique success profile based on the mental makeup analysis of your current top-performing employees and gives applicants a “fit score” based on this benchmark. You’ll instantly see which applicants are worth interviewing, will succeed, mesh well with the team, and contribute to your company’s success.

A tired woman and text reading "The Top Reasons Why Employees Leave a Company"

The Top Reasons Why Employees Leave a Company

The Top Reasons Why Employees Leave a Company 1016 528 Sprockets

One of the best steps toward reducing employee turnover is to understand precisely what causes it. Some businesses, especially franchises in the QSR and home health care industries, experience particularly high turnover rates. The factors can vary, but we created a quick list of common reasons why employees leave their companies to help you improve retention.

6 Reasons Why Employees Leave Companies

You might think that low income is one of the leading causes of employee turnover. However, research has revealed that only 12% of workers quit their jobs because of money. Here are some of the top reasons why employees leave their companies:

1. Lack of Flexible Work Arrangements

Today, most employees want more flexible schedules. They no longer search for a typical 9:00 to 5:00 job, which requires them to stay in the office daily. They often choose to work for an organization that allows them to work remotely at least once per week. Our increasingly digital work environment gives us many reasons why we should enable our employees to work remotely.

If a company starts to offer a more lenient schedule, applicants might choose it over competitors. About 37% of workers would leave their companies for another organization that allows them to work remotely. Correspondingly, 82% would become more loyal to their employers if given a more flexible work schedule.

2. Lack of Appreciation

An employer’s failure to appreciate their workers is one of the significant causes of employee turnover. Employees want their performance noticed, especially when they put in extra effort or work additional hours. However, many employees feel undervalued or underappreciated, and 66% say they would leave their job due to lack of appreciation.

This number is high in millennial workers, as eight out of ten say they would quit their jobs if their present organizations do not appreciate them. A simple “great job” or “thank you” can help employees understand that managers value their efforts and contribute to improved retention.

3. Lack of Progress

Employees understand progression in different ways. For example, some may feel that they want a promotion or salary increase to progress, while others may define progress as acquiring new skills. It does not matter what they would like to work on, who they work with, or how the organization compensates them. When managers fail to give employees room to grow, they get tempted to search for new opportunities and leave companies. Employers should create career and educational advancement opportunities for staff.

4. Poor Workplace Culture

Overall workplace culture also determines employees’ length of stay. Corporate culture begins at the top, and it is one of the essential elements that contribute to employee retention. Although companies have different cultures, always ensure it gives employees a sense of belonging.

Workers appreciate an environment with transparent communication, clear direction, and respectable and approachable managers. An unwelcoming organizational culture is one of the top reasons for employee turnover. 47% of individuals who actively look for new jobs do so due to bad corporate culture.

5. Excessive Workload

Although employers might want to reward high achievers with more tasks, they must be careful when doing so. When employees get overwhelmed with their job’s demands, they tend to leave for other organizations that provide more manageable workloads. Managers should ensure that their teams have manageable workloads. If you increase an employee’s list of responsibilities, pair it with a promotion, salary increase, or other noticeable benefits.

6. Changes in Personal Life

A change in personal life is one of the reasons employees leave a company, but it’s one that it’s difficult to avoid as a manager. For example, a worker may relocate to a new country for themselves or family members. Additionally, changes in their health can cause an employee to quit their job or look for a more accommodating position. While you do not have control over changes in employees’ personal lives, you can always support them in the workplace and through any major transitions.

Reduce Employee Turnover With Our AI-Powered Solution

A woman on a laptop hiring applicants with no industry experienceAlthough employees quit their jobs for various reasons, paying close attention to these factors can potentially help retain your best talent. And, when crew members inevitably leave, Sprockets makes it easy to find new workers that perform like your best employees.

Our sophisticated hiring solution combines artificial intelligence, natural language processing, and over 80 years of psychological research to predicts an applicant’s likelihood to succeed and stay long-term. Building the best team, and saving time and money, is as simple as adding our brief survey to your recruiting process. Sprockets even has an easy-to-use platform and integrates with other major hiring tools!

A woman with a headset and text reading "Maintaining Morale in the Workplace After Employees Leave"

Here’s How to Maintain Morale in the Workplace After Employees Leave

Here’s How to Maintain Morale in the Workplace After Employees Leave 1016 528 Sprockets

It’s inevitable for employees to leave workplaces, whether it’s for them to pursue another opportunity or their manager decided to let them go. However, when influential employees leave, the remaining team members may get frustrated about the situation or worry about their own position. These negative emotions might lead to low morale and reduced productivity. Leaders must then apply their skills to rejuvenate the workplace culture and positive atmosphere.

8 Ways to Boost Morale and Motivation in the Workplace

If you’re a manager, especially in the QSR or home health care industries, you likely deal with a high rate of employee turnover. Therefore, it’s crucial to know how to rebuild team morale after an employee — or several — employees leave, whether voluntarily or involuntarily.

Here are some strategies to maintain morale in the workplace after employees leave:

1. Re-Affirm the Team’s Vision and Goals

When employees leave their workplace, some rumbling in the workplace might occur as the remaining workforce might wonder about the future of the business. The remaining labor force needs reassurance that the company will still meet its long-term goals and be successful. Remind the team about the company’s vision and the significant roles they all play in that.

2. Be Open and Transparent

If you decide to let employees go, the remaining team members might wonder why you came to such a decision. In most situations, it is alright to provide an explanation and invite any questions or concerns your employees might have. This can put them at ease about their job security and workplace environment. 

(When informing the team about the reasons for termination, ensure that the engagement is a one-on-one meeting with open-ended questions. However, you might not be able to share all the contract’s termination details due to legal requirements in the state.)

3. Praise Employees for Their Contributions

The remaining team needs to be made feel appreciated for their contributions toward meeting the company’s short-term and long-term goals. As you commend their work, you need to put it appropriately for them to see the sincerity in the appreciation. Some people give their best in every team, and they need recognition through awards or recognition. Such credit will create a humane picture in the remaining employees’ minds, and they will remain focused on meeting the company’s goals.

4. Treat Laid-Off Employees With Respect and Dignity

If you have to terminate an employee for any reason, make sure you follow the due process and do so respectfully. If you handle a firing or layoff poorly, the ill-treatment will only create resentment within the remaining labor force. The remaining labor force will be less disgruntled if their former colleagues get treatment full of respect and dignity even as they leave.

5. Lighten Workers’ Mood

Buying free lunch or morning coffee for the remaining staff may improve the workplace’s mood. The company may also opt to take the workers for a trip or a social outing. During the event, the management should freely interact with the remaining employees. It might be a good opportunity to communicate why the decision was necessary and the next step the team will take to reach their goals together.

6. Emphasize Work-Life Balance

Management should create time for the employees to enjoy their social life with their families to increase their morale and prevent burnout. The administration can promote work-life balance by coming up with flexible schedules and remote working opportunities. Management should also avoid engaging workers while they are outside the workplace.

7. Organize Team-Building Activities

One of the most common ways to create a positive relationship between managers and their teams is to schedule team-building activities. Team-building creates collaborative cultures among teams, which is necessary after a significant layoff at work. If you are looking towards maintaining morale in the workplace after employees leave, a team-building initiative is one of the approaches to adopt.

8. Address the Workload Burden

Whenever workers leave, there is an unallocated workload that will have to be shared by the remaining staff if there is no immediate replacement. Adding extra work could cause resentment. If you are firing some employees, consider having them replaced as soon as possible. If the workload is to be re-distributed to the remaining workforce, consider informing them positively. You might want to consider even adding something to their paycheck.

Improve Retention and Team Morale With Sprockets

Two happy employees in a kitchenOne of the best ways to avoid the reduced morale associated with employee turnover is to hire the right applicants in the first place. Sprockets’ AI-powered solution predicts an applicant’s likelihood to succeed like your current top-performers, fit well with the existing team, and stay long-term. Users experience a 43% improvement in retention, on average!

Schedule a brief demo today to see how it works and start building the ideal team. You’ll save valuable time and money during the recruitment process and see an increase in overall productivity.

An unhappy man and text reading "How Employee Turnover Affects the Customer Experience"

How Employee Turnover Affects the Customer Experience

How Employee Turnover Affects the Customer Experience 1016 528 Sprockets

Business managers and human resource professionals must fully understand the effects of employee turnover. It disrupts scheduling practices, causes productivity slips, hurts company morale, wastes valuable time, and costs money.

However, one of the most significant consequences is the negative impact employee turnover has on customer service. The loss of long-term, top-performing employees means the loss of leadership, institutional knowledge, and rapport with customers. Experienced and seasoned employees, who understand the needs of customers, are in a better position to serve them.

The Effects of Employee Turnover on Customers

They Feel Less Valued

Businesses of all sizes should understand how employee turnover affects the customer experience. Whether it’s greeting them by name or knowing their favorite order, customers feel valued when employees understand them and their preferences. However, they can easily feel undervalued or unappreciated if there are always new employees at your location who lack the information or time to go above and beyond like this.

They Get Impatient

Employee turnover can lead to a loss of efficiency and productivity. New employees need time to understand a company’s business policies and procedures, how to solve problems, and meet expectations. Customer satisfaction depends on fast and friendly customer service, and it can be compromised by errors, repeated questions, or delays.

They Don’t Return

Repeat customers can significantly increase the ROI and reputation of your business. They provide you with consistent income and become loyal supporters, recommending your company to several other potential consumers. However, employee turnover can damage customer loyalty and even prevent people from becoming repeat visitors. A customer who receives poor service due to negative workplace culture or overloaded employees resulted from turnover might never come back to your store after an initial purchase.

How to Improve Retention and Customer Satisfaction

A waiter providing good customer serviceIt’s crucial to hire the ideal applicants to mitigate the negative effects of employee turnover. Many successful businesses use pre-employment assessments to screen applicants and make the right hiring decisions.

That’s where Sprockets comes into the equation. Our AI-powered hiring solution predicts an applicant’s likelihood to succeed and stay long-term based on the success profile of your current top-performing employees. Numerous franchisees across a variety of industries have reduced costly turnover with Sprockets. You could be next!

A tired worker and text reading "How Employee Turnover Affects the Rest of Your Team"

The Effects of Employee Turnover on the Rest of Your Team

The Effects of Employee Turnover on the Rest of Your Team 1016 528 Sprockets

Losing an employee costs time and money, but you also must consider the effects of turnover on the rest of your team. It can negatively impact company culture, productivity, and overall satisfaction for both managers and employees. Let’s dive into the various ways turnover can hurt your business and discuss the best options for avoiding them.

How Employee Turnover Affects Your Team

The Employee Experience

First of all, a lackluster recruiting process that results in new hires that don’t fit the company culture, or are otherwise unqualified, puts stress on the current team. Existing team members lose time with their direct manager to the interview and onboarding processes. The time spent on the hiring process is generally carved away from the time managers would typically spend developing their current teams. Administrative and other time-sensitive tasks will likely take precedent over the current team’s development needs. Many development opportunities are lost, and existing employees may feel less valued.

As the poorly placed employee moves toward their eventual exit, the core employee base is forced to take on a heavier workload. In the case of absenteeism, employees must pick up more slack. In the case of poor performance, they face more work in the form of both rework and time spent resolving a series of poor customer experiences caused by poorly performing coworkers.

The Manager Experience

This redirection of energy can negatively impact the manager’s experience at work as well. The loss of development time is not just a problem for their employees. The process of creating relationships while developing individuals and teams is the primary source of professional growth for a manager. When this process is neglected, managers don’t have opportunities to build upon their coaching skill set. The team’s performance improvement efforts will suffer, and the drag on productivity will worsen. Now, the manager faces a new-hire learning curve as well as a slower improvement process for the existing team. 

Company Culture

Another consideration is the impact on a company’s culture. Most companies are very conscious of the culture they are trying to create. Creating an environment in which teams are positioned to perform well requires a lot of education and reinforcement. Consistent reinforcement provides the traction needed for a positive culture to be formed and, consequently, take on momentum. A constant stream of departures and replacements makes the task infinitely harder than it already is.

All great cultures are about creating a sense of team as well as the belief that employees have a productive place to work and perform. When employees experience turnover around them, they tend to doubt both elements. They are faced with the tasks of rebuilding a positive team dynamic and learning to trust new team members. In the case of voluntary attrition, employees will wonder whether their environment is as good as they believe it to be. They might assume people are leaving for better opportunities and working conditions. This is a real risk to the state of employee morale.

Reduce Employee Turnover With Sprockets

Two men shaking hands at a restaurantYour hiring process has a significant influence on employee retention. The challenge is to differentiate between the factors that bring the strong, consistent performers and those that result in poor fits. By focusing on logic, data, and decision quality, you can mitigate the impact of employee turnover on company morale, culture, and productivity.

This is where Sprockets can help. Our AI-powered software predicts the likelihood that applicants will fit with your company’s culture and perform similarly to your most valued employee base. The combination of artificial intelligence, natural language processing, and over 80 years of psychological research ensures that hiring managers make consistent, high-quality decisions. These decisions will play a huge role in slowing the churn in the employee base and allow teams to get back to the business of development and innovation.

Start hiring the ideal applicants and improving retention with Sprockets today!

A businessman with a calculator and text reading "What Is the Financial Cost of Employee Turnover?"

How Do You Evaluate the Financial Cost of Employee Turnover?

How Do You Evaluate the Financial Cost of Employee Turnover? 1016 528 Sprockets

If you want your business to thrive in today’s economy, it’s more important than ever to find the best employees in a pool full of applicants. Retaining a good employee once you bring one on board takes some work, but it’s worth the effort because the average financial cost of employee turnover is often significant. Employee turnover comes with a measurable financial cost, but just how much is it?

Employee Turnover Costs

The cost of employee turnover varies depending on your business, industry, and the type of income the worker received. When we calculate the cost of employee turnover, it’s important to take a variety of factors into account.

Some of the various factors include:

  • Recruiting employees
  • Hiring the right employee after selecting from a list of available candidates
  • Onboarding the employee once you’ve hired them

Without a quality candidate identification process, you also may wind up with the wrong pool of candidate employees from which to select. Not having the right candidates for one of your open positions is yet another factor that will increase the average financial cost of employee turnover.

Hourly Employees

We’ll start with hourly employees since these workers typically have the highest rate of turnover. The Center for Hospitality Research at Cornell once conducted a study that determined the average cost of employee turnover for hourly employees is about $5,000. This includes the costs associated with pre-departure, recruitment, selection, orientation and training, and productivity loss.

Salary Employees

When salaried employees leave their employers, the costs that subsequently arise aren’t trivial. Many analysts estimate the financial cost of employee turnover at an average of 6 to 9 months of that turned-over position’s salary. 

For example, if you lose an employee who earns $60,000 annually, expect it to cost between $30,000 and $45,000 to backfill their position. Lose 50 such $60,000 employees annually, and you’re looking at $1.5 million to $2.25 million in financial costs due to employee turnover, at minimum. 

Time Lost Due to Turnover

Also, keep in mind that the time lost due to employee turnover. According to a December 2017 study by the Society for Human Resource Management, it takes an average of 36 days to hire an employee.

The length of time needed to hire employees varies by industry, though. For instance, in 2017, the Chicago Booth School of Business found that it took an average of 13.4 working days to hire an employee in the construction industry. In the healthcare industry, however, it took as long as 48.3 working days to hire a suitable employee.

The longer one of your employee positions goes unfilled, the greater the financial burden can become for your business. The below examples of industries with the longest hiring processes will give you an idea of the potential costs attached to employee turnover:

  • Financial services: 46.2 working days
  • Information: 31.8 working days
  • Education: 28.9 working days
  • Wholesale and retail trade: 25.8 working days
  • Leisure and hospitality: 21.1 working days

If you’re in government at any level and you need to hire someone, expect the hiring process to take about 28.5 days, though it can take much longer in some cases. Here’s an example: 

According to a March 2019 report by the Department of Homeland Security, it takes the Transportation Security Administration (TSA) 183 days to hire a screener to staff one of its airport security checkpoints. It’s difficult to imagine any non-government business thriving if it takes more than six months to hire an employee to fill an open position.

There are tangible as well as intangible costs associated with leaving an open employee position unfilled for more than a month or for any length of time, for that matter. Other employees may need to pick up a departed employee’s work output, for one. For another, some amount of business may be lost or given up until a new employee can be hired.

Employee Turnover Cost Calculators

The beauty of data when it’s used properly by business managers and leaders, as well as human resources professionals, is that you’ll gain solid insights into just where your business is at and where it may need to go. A good employee turnover cost calculator is a tool you can use to gauge what such employee turnover, or “churn,” is costing your business. Generally, an employee turnover cost calculator allows you to:

  • Calculate employee turnover rates.
  • Determine certain costs from lost staff.
  • Build a good business plan that allows you to anticipate some amount of employee turnover.
  • Be better prepared for voluntary employee terminations.

Reduce Employee Turnover With Sprockets

People shaking handsThe truth is that if your business is composed of more than one person, you’ll have to deal with employee turnover. Luckily, Sprockets’ AI-powered solution reduces the number of candidates your company will need to screen or interview by highlighting the employees who will be the best fits based on the success profile of your current top-performing workers. 

You’ll instantly know which applicants will succeed and stay long-term, helping you avoid the financial costs of employee turnover. Contact us today to see how we can help your company reduce employee turnover!