Hiring new employees can be a costly and time-consuming process for businesses. When a new employee...
Naturally, hiring new employees is an essential part of running any business. But, when a new hire leaves the company after only a short period of time, it can result in wasted management time and training costs.
Below are five critical ways that a short-term hire can negatively impact your business:
1. Management Time
When a new employee leaves the company after only a short period of time, it can result in wasted management time that could have been spent on other, more business critical, tasks. The time spent recruiting, interviewing, and training a new employee can all be lost if they leave the company too quickly to recover any benefit.
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2. Decreased Productivity
Productivity can be severely impacted when a new hire prematurely leaves the business. Especially with the company now having to divert resources and time away from revenue generating tasks into finding an appropriate replacement. This often means missed deadlines, decreased revenue and more.
3. Training Costs
Training new employees can be a significant expense for businesses. When an employee leaves the company after a short time, the business may have to incur these training costs all over again to train the replacement.
4. Recruitment Costs
Recruiting new employees can also be a costly exercise for businesses. The business, yet again, may have to incur these recruitment costs to fine a replacement candidate, should a new hire leave the company too soon.
Interesting at GrassGreener Group our standard procedure provides a minimum, a 6-12 month replacement policy should your new hire leave prematurely. We’re able to provide this policy because approximately 96% of our placements are still in the role after 24 months.
Let's have a chat about how GrassGreener Group can help save you time and money when it comes to your recruitment process, click here
5. Impact on Morale
High staff turnover can have a negative impact on employee morale, with remaining employees potentially feeling overworked and undervalued. This can lead to decreased job satisfaction, decreased productivity, and increased turnover.
Closing thoughts…
In conclusion, hiring a new employee who does not stay with the company for very long can have a significant impact on a business. From wasted management time and training costs to decreased productivity and recruitment costs, the financial costs of high turnover can be substantial. Additionally, the impact on employee morale can be long-lasting and difficult to address. It's important for businesses to focus on retaining employees by providing a positive work environment and investing in employee development and growth opportunities.
