What does it say about us as leaders when we have reoccurring turnover? The loss of respect, credibility and trust can be the most damaging long term effects of turnover.
The Invisible Costs
As a strategic business leader, selecting and retaining good employees is a key skill that must be learned. And that is the good news! It can be learned. There is a wealth of resources available to today’s candidates, yet most interviewers are not up- to-date on latest trends. As you are looking to continually develop your professional skills, don't overlook the importance of keeping your interviewing skills current. Candidates today are savvy and well trained, can we say the same?
We all know the pain of a bad hire. Often our focus is on the hard costs of turnover, expenses such as advertising, training, equipment, and payroll. While these are significant, they can distract us from the intangible consequences of lost human capital; the “invisible costs”, those which can be felt and observed but not measured.
Every time an employee walks away, it slowly chips away at our leadership credibility. This “revolving door” may be the result of hiring mistakes or even the loss of star employees fed up with working with those mistakes. Our team trusts us to select and retain the right people to work alongside them. They rely on us to make the decisions they cannot, choosing people who will enrich instead of erode team morale.
Customers also take notice of office instability and wonder about our inability to keep an intact team. Our competitors get wind of yet another lost employee and see opportunity in the weakening of our workforce. Both active and passive candidates observe the same open positions and wonder why people don’t stay.
We ourselves may even begin to question our abilities or feel defeated, seeing hiring as nothing more than a crapshoot. Often, the deck is stacked against us from the start. How often are we given the responsibility to interview and hire but no resources to learn how? But there IS hope! Great interviewers are made, not born. Interviewing is a learned skill set, requiring practice and precision. By seeking out resources to increase your hiring effectiveness you can replace the "invisible costs" with visible results.