What makes a successful business? That is the million dollar question countless entrepreneurs, small business owners and company heads find themselves asking day in and day out. While it’s true that any effort is better than none, it’s also true you should get to the root of any conceivable issue and create a foundation that spreads to all corners of your brand. Your employees are the life blood of your company and, as such, will have long-term benefits or consequences if poorly chosen or managed. If you’ve considered hiring an executive search consultant but aren’t sure where to get started, look below to learn more about HR consulting and why more businesses are finding it a viable option for success.
What Is Employee Retention?
Let’s start off with one of the most frustrating aspects for both businesses and employees. Employee retention is a term referencing the act of maintaining a consistent workforce. Over 60% of organizations view employee retention as an issue that needs fixing. The costs of employee turnover range anywhere from 30% to 150% of an employee’s salary, making this an expensive issue with long-term consequences.
What Is Employee Turnover?
The opposite of employee retention is employee turnover, where employees leave in a shorter amount of time than a business can feasibly manage. Studies have shown over 20% of new hires will leave their jobs within 45 days of being hired — common reasons cited include poor performance and issues with temperament. New hires that undergo a structured on-boarding program, however, are 60% more likely to be with the company for a minimum of three years.
What Is Employee Diversity?
One of the most talked about issues recently is that of employee diversity. Diversity in hiring choices is an active choice in selecting candidates from a wide variety of backgrounds and experiences to encourage a more flexible working environment. Ongoing research by McKinsey has found that gender-diverse companies are 15% more likely to outperform their peers, while ethnically-diverse companies are 35% more likely to accomplish the same.
What Are Common Hiring Mistakes?
There are a few frequent issues businesses large and small come in contact with. This includes not seeking out outplacement consulting as well as attempting hasty hiring in order to meet demand. The U.S. Department Of Labor has estimated the average cost of a bad hiring decision can equal as much as 30% of the first year’s potential earnings. Over 35% of the CEOs in both small and midsize businesses surveyed by Vistage said that staffing is the most significant business issue they’re currently facing, twice as high as any other.
What Will An Executive Search Consultant Do For Me?
When you struggle to encourage employee retention and your business figures are starting to suffer, seeking out the aid of an executive search consultant will help with cementing a more consistent pattern of success. HR executive search resources are less interested in hiring and more interested in equipping businesses with the skills to find and maintain the most effective workforce. Over 85% of companies with employee recognition programs have cited a significant increase in worker happiness and satisfaction. If employee retention is an issue you’re facing, an outplacement consulting firm may be what you and your future employees need.