Some companies go through employees like water. These are the companies that have not calculated the costs of replacing an employee. Even to replace the lowest paid worker, a company will easily spend at least $5,000. At higher salary levels the turnover cost increases more significantly. For example, at the senior level, companies will usually spend four times the annual salary. Additionally, unnecessary employee turnover creates workflow interruption, increased stress, morale decline, and loss of experience.
Of course, if we can preempt this finance and talent drain, then the company and the employee are happier. And that is why we must have best practices in recruiting and hiring. I have heard of some organizations that have hired a new worker based on a single interview and without performing any kind of a background check.
As businesspersons, let’s do all we can to retain good employees. Equally important, let’s follow best practices up front at the recruiting and hiring stages. After all, you don’t want to say that you did more research on your latest electronic gadget than you did on that new employee, do you?