The Best Recruiting Tool Ever

I recently attended a seminar where Ashley Goodall presented information from his new book “The Problem with Change”.  Mr. Goodall talked about the principles companies use to incorporate change and the problems this can cause from a performance perspective.  Among these problems, employees experience a sense of uncertainty, feelings of lack of control, and disconnectedness/not belonging, among others (You can learn more about Mr. Goodall and his book at https://ashleygoodall.com/ ).

Ask an HR person the first thing that comes to mind when hearing those attributes and “turnover” is the answer.   A recruiter’s number one job is to address turnover but they usually aren’t the people using the very best recruiting tool to do it —  Retention.  Let’s address the challenges of retaining employees and strategies to keep them.

Business people walking around with their heads in individual clouds

A 2023 EY report says a significant portion, 75%, of US workers report feeling excluded at work1

The Revolving Door

It’s clear companies have a major challenge in keeping employees.  Statistics paint a clear picture: A Bankrate survey in 2023 found 56% of workers plan to look for a new job in the next 12 months, up from 2022 (https://www.bankrate.com/personal-finance/job-seekers-survey/#new-job ).  Research also suggests a significant portion of the workforce, up to 70%, are considered passive candidates (those who aren’t actively applying but may be open to new opportunities that come their way). This means the majority of your workforce is constantly browsing, making it crucial to create a work environment that fosters loyalty.

A lot of information can be found on why employees are unhappy at work. The more popular themes:

  • Not Feeling Valued: Employees who feel underappreciated lose interest
  • Lack of Growth: Employees, especially younger generations, prioritize career development. Without clear paths for advancement, they may look elsewhere.
  • Work-life Imbalance: Blurred lines between work and personal life can lead to burnout.
  • Poor Company Culture: Unsupportive or toxic environments are a major red flag for employees.
  • Salary: Underpaid employees are often demotivated to work.

This unhappiness often comes from the company leaders themselves. Mr. Goodall is clear that corporate leaders are inflicting great stress on employees with their “Change is Good” mentality.

Unhappy employees with up to 70% at least passively eyeing other opportunities leads to turnover. We all know the cost of turnover.  The Society for Human Resources Management (SHRM) estimates that the average cost to replace an employee can be as high as six times their salary.  And, with the burden put on current employees to cover for empty seats, there is a snowball effect contributing to even more unhappiness across the organization.

The Cost of Turnover: SHRM estimates the average cost to replace an employee can be up to 6 times their salary

Graph of a stock price on  computer screen

Strategies for Success

The good news is that companies of all sizes can implement effective strategies for retention, many of which need only an investment of time, not big dollars.  These strategies can have a big impact on employee engagement and retention:

  • Give/Get Feedback Regularly: Conduct surveys or hold open forums regularly to understand employee needs and concerns. Addressing issues proactively shows you care.
  • Invest in Development: Offer training programs, tuition reimbursement, or mentorship opportunities. Employees who feel their skills are valued are more likely to stay.
  • Promote Work-life Balance: Flexible work arrangements, generous paid time off, and clear communication about boundaries can go a long way.
  • Recognize and Reward: While additional compensation/bonuses are nice, if unaffordable, public recognition for achievements and smaller gifts can also go a long way to make employees feel they’re appreciated.
  • Foster a Positive Culture: Create a space where employees feel valued, heard, and respected. Practice open communication and celebrate team accomplishments. Even if a company does not invest in this, managers can create this environment for their teams and should invest time to do so.

I mentioned earlier that, while the most important recruiting tool, recruiters generally are not the ones to implement retention strategies. That job typically falls on another HR member.  Recruiters focus on filling open roles. But here is the important point about retention – it’s everyone in the organization’s job. And, when leadership, management, AND employees embrace that, retaining employees becomes a lot easier.

A famous college football coach once said, “The best recruiting is keeping the ones you already have”.  I would say that works in the business world as well!  Now is the time to unleash the power of retention in your company!

To explore more about this topic, read Michelle Gouldsberry’s “7 Benefits of Employee Retention + 4 Retention Strategies” or this article at O.C. Tanner’s site, “What makes Employees Happy at work?” .

Share your experiences by commenting on the article or feel free to reach out to me directly (estewart@ESTalentSolutions.com) with any comment/questions.

  1. Report: “Majority of employees feel excluded at work” – HR Dive ↩︎

Strategies to
Enhance Productivity

Eddie Stewart has over 20 years of recruiting experience, working in both large and small corporate environments. He currently owns and operates ES Talent Solutions, a consulting firm focused on strategic recruiting consulting. Need help identifying what needs to be fixed or want an outside view of the health of your recruiting function? Contact Eddie (estewart@ESTalentSolutions.com) at ES Talent Solutions to learn more about corporate recruiting assessments and how they may improve your organization.

Eddie Stewart has over 20 years of recruiting experience, working in both large and small corporate environments. He currently owns and operates ES Talent Solutions, a consulting firm focused on strategic recruiting consulting. Need help identifying what needs to be fixed or want an outside view of the health of your recruiting function? Contact Eddie (estewart@ESTalentSolutions.com) at ES Talent Solutions to learn more about corporate recruiting assessments and how they may improve your organization.

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