Dunno.
According to the Society for Human Resource Management, which is as close as you get to unbiased reporting of this stuff, 30-40% of first year’s salary.
But rather than ask what the number is, let’s look at it differently, and ask what makes up that number, starting with the obvious and then getting into the more obscured but as real costs.
💵 ME.
💵 Not me. Advertising, posting, collecting, screening, rejecting, reposting. Etc.
💵 HR or Talent Acquisition’s time whether you deal with ME or not. Job spec, candidate screening, co-ordinating interviews, rejections, offer, background checks, references (although ME does alot of that other stuff like background checks, references, we’ll even pee into a cup if you want us to).
💵 The line manager’s time dealing with, you, ME and interviews, defining and writing the spec
💵 The time that the job was unfilled which is typically 30-45 days minimum so assume it’s only a month then there’s 8% of salary right there and that assumes that the person’s salary is equal to their incremental value add to the company.
💵 2 weeks notice for them? There’s 4% of salary, I’ll guarantee that the outgoing person is filling a seat at this point and little else.
💵 The lead up to them quitting. EMPLOYEE DISENGAGEMENT. This is massive and measureable. And often ignored. Studies show that an engaged employee can contribute up to 26% more.
💵 Oh, let’s hope that the new person isn’t disengaged……….
Way back when, I got Certified as a PI Practitioner I thought to myself “self, this is great for hiring”. It is, but most of the planet uses it for employee retention. So that’s when I thought, “self, you should use it to make sure that you never have to go back to a placement guarantee and put your money where your mouth is”
So I did. Hence the 9 month placement guarantees. We still have people and companies not working out but it’s infrequent and usually some odd freaky stuff where employers don’t do as we recommend.
“Good job self”.
So how can we help you to better hire and retain employees?
Engage your peeps in work.
We can give you exact guidance on what to do to ensure that you get the best out of your people, don’t treat them how you’d like to be treated, treat them how they want to be treated.
How do you find out? Duh. You ask them. 6 minute questionnaire to determine;
🔓 What their communication style is. Reserved, direct, approachable, listener, informal?
🔓 How they delegate. If they delegate. What they delegate.
🔓 Decision making style
🔓 What are their strengths?
🔓 What are their blind spots, where do they need to flex?
🔓 What are their motivating needs?
🔓 What are their core behaviors?
Like I said, 6 minutes to work all of that out.
And if you want to know how we use these super powers and if in fact they are super powers, I can show you on you. Easy peasy.
Drop me a note.