Why Hiring and Retention Are Top Concerns for Businesses

Finding the right employees can be a major challenge for businesses. It can be equally challenging to hold on to new talent. High turnover is an expensive proposition for most companies, and yet the number of people leaving their jobs for new ones is at all-time high. One solution many businesses adopt is to outsource recruiting to headhunters and employment agencies. With their vast experience of matching the right candidate to the job and their networks across different industries, they are in a position to find the right employees for every open post.

The challenge of hiring and retention
For most businesses and Human Resources departments, recruiting the right candidates can be a difficult and time-consuming task. It’s also one that they may find themselves doing more frequently than they would wish. That’s because employee turnover is at almost record high levels, with millions of people leaving their jobs for new or better prospects every year. In fact the two problems, of hiring and retention, are closely linked.
That’s because a successful search is actually a retained search. In other words, if a company hires the right person, the person will stay for a substantial period of time rather than jumping ship at the first opportunity. This doesn’t happen very often, however. The dismal statistic is that more than a fifth, or 22% of new hires, will quit their jobs within a month and a half.

Employee turnover can be costly
Searches can be costly and time-consuming. High employee turnover costs businesses anywhere between 30% and 150% of the employee’s salary. Total annual losses due to employee turnover are estimated to be around $11 billion. That’s one reason why 57% of companies feel that employee retention is a problem.
In fact, in hiring, as in so much else, it can be important to get it right the first time, so you don’t have to keep on doing it over. Recognizing the need for an objective and experienced point of view, many hr departments prefer to outsource their recruiting to employment agencies who have years of knowledge and experience to back their work.

How an employment agency can help
With their wide experience in staffing and recruiting, recruiting agencies understand all the intricacies of the process. They have extensive experience in matching the right candidates to each employment opportunity. Staffing agencies also understand the importance of onbarding and orientations for new employees, to help them to settle into their new roles.
Studies have shown that when new employees go through a structured onboarding program when they join, they are 58% more likely to be with the same company three years later. Ultimately, building a relationship that is meaningful for employees is what keeps them happy and productive. Even something as intangible as an employee recognition program with suitable rewards can go a long way in ensuring job satisfaction.

Hiring and retention are top concerns for businesses and especially for Human Resources managers. With their knowledge and experience, employment agencies are well placed to help businesses with both tasks, to help them create a productive, happy, and stable workforce.

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