Are Your Employees Cutting Into Your Bottom Line?
If you’re like me and own and operate a small business, then you already know: today’s economy is tough and shows no signs of relief. While Washington lawmakers point fingers at one another, business owners are the ones left feeling the effects of a shrinking economy. With so much uncertainty, it’s becoming ever more important for small-to-large business owners to employ the best workforce they can. According to a recent U.S. Department of Labor estimate, the average annual cost of a bad hiring decision can equal 30% of that employee’s yearly salary. Furthermore, a recently published survey by human resources consultant agency Robert Half showed that over one third of executives felt the top factor leading to a failed hire was a poor skills match.
This data begs the question: what can small businesses do to ensure they find and retain the best employees? If you’re like me and can’t afford the addition of a company-wide human resources department, then the answer is simple: finding and hiring a human resources consultant.
Human resources consulting firms might seem like an unnecessary expense, but the savings a good talent acquisition management service or human resources consultant can end up saving you money year after year. How, you ask?
First, consider the fact that 22% of newly hired employees leave their jobs within 45 days of being hired. The most commonly cited reasons for leaving include poor performance and temperament issues. A human resources consultant can help your business select employees who are best suited for your business, which will save you money. How much money? Well, the average cost of an employee turnover falls between 30% to 150% of the employee?s yearly salary. Can you afford to pay that in today’s economy?
The U.S. Department of Labor reports that 57% of small businesses consider employee retention as one of their major hurdles. Human resources consulting firms can also help small businesses retain the best employees through onboard training programs. Employees that participate in structured on-boarding training programs are 58% more likely to remain with your company for at least three years. With the high costs of employee turnover, it’s easy to see how hiring a human resource consultant can end up saving you money year after year.
Let’s face it: human resources operations can be a headache. With so many other moving parts to worry about, your business can’t afford a single slip-up when it comes to staffing. A human resources consultant or executive placement agency can ensure your business has what it takes to stay afloat in the turbulent seas of today’s economy.