It can be challenging to estimate the average time lost when employees leave. After all, there are numerous potential factors, including your type of business, the amount of training you provide, and your employee recruitment process.
However, every manager and business owner knows that losing an employee costs valuable time. Perhaps more considerably, in most businesses, this time lost equates to money lost as well.
Evaluating the Amount of Time Lost When Employees Leave
There are three main ways that employee turnover can cost your business time:
Of course, losing an employee means you no longer have their labor hours. The work that your former employee was doing is now nonexistent. This is especially true for former employees who don’t give an appropriate length of time for leave notice (if they chose to quit).
You also lose time because you have to devote labor hours toward recruiting a replacement employee. Now, you’re allocating hours toward searching for a new hire. The current labor market, your company’s needs, and the level of skill required for the position can all increase the time it takes to hire a replacement. Plus, you need to advertise and vet potential candidates. Unfortunately, the time it takes to hire employees can be extensive when you don’t have the proper tools to streamline the hiring process.
It’s important to consider the time it takes to properly train the new employee and bring them up-to-speed in the workplace. This amount of time varies depending on your business, but it can be considerable. Don’t forget: You will need to think about how long it takes for a training manager or fellow team member to teach the new employee. This potentially doubles the hours necessary to train a new employee.
What Can You Do?
Implement Strategies to Improve Employee Retention
If you want to avoid the costs of employee turnover and run your business as efficiently as possible, you need to keep your employees happy and healthy. Employee retention initiatives vary from business to business, but the basic concept is to make working at your company preferable to working at a competitor’s company. Some initiative examples include salary incentives, career growth opportunities, paid time off, and insurance benefits. You can even start something as simple as a weekly happy hour for your team to engage outside of work.
Investing in your current employees reduces the lost time and money from turnover. It’s a win-win for both employers and employees to create a positive work environment.
Hire Applicants Who Will Stay Long-Term
Improving employee recruitment is one of the best ways you can reduce the lost time of employee turnover. There are three main ways that a better recruitment process will help you reduce lost time.
First, having a better system in place to locate and hire new employees will make the actual recruitment time period shorter. When this system is improved, you will find qualified candidates more quickly. You will move to the onboarding phase sooner and replace the former employee’s work hours in less time.
Additionally, you will not have to devote as many human-resource hours toward the actual recruitment process with a more efficient system in place. Remember, the hours that your human resource employees spend also factor into the amount of time you lose. These hours could be spent elsewhere.
An improved employee recruitment process also increases the number of high-quality candidates you attract to reduce your turnover. Being able to focus only on the ideal candidates, rather than having to stress about weeding out poor fits for your positions, ultimately reduces the overall time spent.
The Solution: Sprockets’ AI-Powered Hiring Platform
One of the best ways to reduce the time lost on employee turnover is to integrate Sprockets into your hiring process. Our sophisticated solution to hiring combines artificial intelligence and over 80 years of psychological research to identify the ideal applicants for your needs. It’s not magic — it’s logic.
Plus, it’s proven to work with numerous business owners in a variety of industries, including home health care, quick service restaurants, call centers, and more. You could be the next success story!