Basic HTML Version
Page 5
We can minimize employee turnover by doing as
much as possible to hire the right person in the first
place.
Consider the particular types of employees within
your immediate team and the costs associated with
hiring those employees. For example, if you are a shop
floor supervisor you might consider the cost of hiring
an assembly line employee, while an administration
manager might work on the cost of hiring a new
accounting clerk or a vice president of marketing. Work
out your own analysis of the real cost of hiring a new
employee. Each item that is applicable is a three-step
process.
Determine:
• Who is involved in the process
• How much time it takes
• What each person’s time is worth per hour
Suggested Costs to Consider
Lost productivity
Not only will you lose productivity while the job is
vacant, the interviewing and training process can also
consume resources and time.
Recruiting costs
This means the cost of placing an advertisement in
the paper, on a website, and through recruitment
agencies. Do not forget to add somebody’s time to
place an advertisement. They must check what the
organization is looking for, prepare information, verify
copy, send the ad to the newspaper, and then handle
phone calls, inquiries, and resumes.
Screening costs
This includes reviewing resumes (based on a resume
short-listing guide that has been prepared).
Also included is the cost of
responding to direct enquiries
and requests for information. Do
not forget any letters of regret
you send out, including paper,
postage, and time to type and
sign.
Interviewing costs
This includes time spent contacting candidates,
arranging i terviews, preparing for the interviews, and
conducting them. You will also need to type, sign, and
send letters of regret or make equivalent telephone
calls.
If you do testing, there is a cost associated with
monitoring and rating the tests. Doing group testing?
Divide total cost by number of candidates who will be
interviewed.
Evaluating costs
This includes time spent evaluating, checking
references, and making the selection. The cost of
making the job offer—this might need to be checked
by accountants or lawyers. Figure in time spent
negotiating with the candidate, arranging start dates,
and other arrangements that must be made before the
candidate arrives (business cards? supplies? locker and
keys?).
Training costs
The money associated with taking the time to meet
the ca didate; introducing them to others; providing
an orientation; providing workplace health and safety
or other training.
Other costs
As well, consider the cost of reduced efficiency as the
new employee learns the job, including time spent by
others answering questions and showing them the
ropes. There may also be other employee turnover
costs associated with your organization.
Job Analysis and Position Profiles
Research is conclusive that managers who understand
what a job involves do a much better job of hiring.
They also have a much lower rate of hiring error than
those who run in at the last.
Job Analysis
An occasional job analysis can serve a very useful
purpose. Sometimes we do not really stop long
enough to take stock of a position.
Hiring the right person the first time takes more
than a gut feeling. It takes planning and preparation,
beginning with:
• Understanding the job and what it involves
• Understanding the technical skills the job requires
• Understanding the performance skills the job
requires
• Describing those skills in objective, behavioral
terms
redictor of
avior is past
“