Gallup estimates that U.S. businesses lose $1 trillion every year from employee turnover. Not only do they lose the cost of recruiting new hires for vacated roles, businesses lose the time it takes to train new hires and bring them up to full productivity. Research shows that it takes an external hire an average of a little over two years to catch up to the level of competency that an internal hire would exhibit on day one.
Recruitment and training costs combined with the current low unemployment levels create a difficult trifecta in which companies now have to manage staffing levels. The most recent data from the B.L.S shows there is less than one (0.9) unemployed person per job opening, down from 6 unemployed people per job opening in 2010 and 2 in 2014. The data proves it: recruiting is harder in 2019!
At Lever we’re constantly looking at new trends in staffing, how companies are managing them, and how our Talent Cloud Connect can help facilitate more efficient hiring of employees who fit perfectly within your organization. Here are three keys to getting ahead of employee turnover.
1. Facilitate Internal Mobility
Your current employees are your most valuable candidates. But how easy is it for them to find your new roles, and be managed through your existing recruitment pipelines for an open position?
Lever Internal Mobility allows you to post jobs internally as well as externally, or internally only. Internal applicants are flagged within your candidate lists, so they get the white glove treatment. After all, current employees deserve the best, whether or not they’re right for the role. Internal Mobility also prevents internal candidates that use Lever from viewing sensitive information related to the role.
2. Predict Backfills
Backfills are the roles that open because someone departs, whether it’s by taking another job, getting promoted, shifting roles internally or being terminated. Identifying potential backfills before they happen helps you get ahead of hiring. Be sure to keep on top of potential backfills when for the roles internal promotions and transfers leave behind.
To predict when you might be facing a backfill look at your HRIS or other systems to identify employees with the following characteristics:
- Role longevity: If an employee has been in the same role for 2 or more years, it could indicate that they are ready for a promotion. Ensure you are keeping a pulse for when and if employees ever feel stagnant. BLS data shows the median tenure for workers age 25-34 is 2.8 years. Job tenure lengthens as workers age; tenure for those 35-44 is 4.9 years, 45-54 is 7.6 years, and 55-64 is 9.9 years.
- Internal applicant history: If an employee has shown interest in other roles within the company in the past, they might be ready for a change.
- Performance indicators: Low performance can indicate disengagement with the role and higher likelihood of churn.
- Achievements: A list of achievements shows they are a superstar performer and ready to move up.
Monitoring attrition rates can help ensure you don’t miss your headcount goals this year. Small changes in internal practices and increasing the visibility of mobility options can help avoid churn in key areas as you sustain and grow your business.
3. Rediscover Your Talent Pipeline
Your talent database is full of potential candidates who already have a relationship with your company. You may have interviewed candidates who weren’t quite right for the role at the time. You also may have interacted with candidates you sourced who weren’t quite ready for a move, but expressed interest in staying in touch for future opportunities. Reengaging these candidates is a great way to approach backfills, as well as new open roles.
In Lever, you can search archived candidates by role and tags to identify ones who could be ready for your next open role. Lever Nurture allows you to snooze sourced candidates to check in with them in the future. In both cases, you can also assign email campaigns to reach out to them, and send as a hiring manager or department head for higher response rates.
Lastly, Lever Recommendations suggests candidates that might be the right fit — saving you valuable time in the process of hiring the best talent. A talent database that stores valuable information and allows you to easily search and retrieve it when you need it the most is a game changer, helping you move quickly in this scarce talent market.
Final Thoughts: Staying Ahead of Employee Turnover
Reactive recruiting has had its day. In 2019, the best talent acquisition teams stay on top of employee turnover, adjust for rapid growth, and use all the sourcing and recruiting tools at their disposal to identify and nurture candidates from every source. Facilitating internal mobility, predicting backfills and staying engaged with your talent pipeline helps you stay on top of recruiting costs and hire people who will stay with your company.
To learn more about Lever’s product, join our next monthly demo!