Every organization has a hiring strategy in place, which is the formal plan used to identify, attract, and hire the best talents to fill vacant positions within an organization. Every successful company has one thing in common – great employees. That’s why they invest heavily to get it right when it comes to hiring. On the other hand, mediocre companies consistently fail to bring in the best talents.
This post explores three major ways HR professionals can know if they have an effective hiring strategy in place.
Low Turnover
Employee retention is the most important single factor to assess the quality of hires. That’s why high turnover is dreaded. In Australia, the average cost of turnover per employee is about $15,000. Here are some of the loss associated with losing an employee:
- Lost productivity for the time the role is vacant.
- Loss of training costs invested in the former employee.
- Reduced productivity for the employee covering up for the position until a new hire is found.
- Cost of looking for a new employee – ads, interview, background checks, and more.
- Cost of training the new hire to bring them up to speed.
High turnover can be caused by many factors. For instance, if employees are not the right fit for their role, then they might leave prematurely. Also, dishonest employees may have to be terminated. However, this can be prevented by carrying out a more thorough background check like an afp check which is a criminal history check commonly used throughout Australia. The afp check discloses criminal history in accordance with Australia’s spent convictions schemes.
If a company has a low turnover (or high retention) rate, then it’s an indication that there’s something right with its hiring strategy.
High Employee Satisfaction
Employee productivity greatly impacts business growth. That’s why happy employees tend to perform better. By measuring the satisfaction level of employees, companies can know if they have the right people working for them.
On the other hand, if job satisfaction is low, it can be caused by several reasons. For example, employees that are in positions they’re not well-suited for tend to be unhappy. Also, companies with bad workplace culture tend to have unhappy employees.
That’s why HR professionals have to ensure that they hire candidates that are well suited for the role. This can be achieved through well-tailored ads and interview processes that will help identify the right fit.
Attaining Business Goals
At the end of the day, it all boils down to the bottom line. Without qualified and dedicated employees, it is very difficult to drive business growth. If a company’s business goals are consistently being met, then it’s a strong indication that the right talents are on board.
On the other hand, if the salespeople are not selling well, or the support team is receiving lots of bad reviews, or the product team is making a bunch of critical errors, then something might be wrong with the hiring strategy. However, before this conclusion is reached, a proper investigation must be carried out.
Wrap Up
Having a good hiring strategy in place will ensure that sound employee hiring decisions are always made. Background checks serve as a useful tool that can help employers assess the quality of a potential hire. That’s why national police checks/criminal history checks, employment/education verification, and credit history checks should be part of the pre-employment screening process.
