The Easy and Quick $3 Million Fix

money down drainDid you know that there is a glaring hole within many companies that contributes to their overall turnover? This hole can cost your company big bucks too, but people seem content to just let it occur. Did you know that it can also be fixed pretty quickly, easily, and cost effectively?

Walk down this journey with me – and I promise – I’ll make it quick. Employee Bill works for your organization and has done a great job. He has proven that he deserves the opportunity to be promoted and climb the ladder a bit. He is tasked with several new responsibilities, one of which is having to interview potential new employees and make hiring decisions, or at least contribute to who will be hired. The problem is, Employee Bill has never had to interview before and has no idea what he can ask, what he can’t ask, the best ways to probe for information, or to evaluate multiple candidates against each other. He thinks up a few random questions when the candidate enters, and just sort of “wings it.” He’s done the best he can based on the knowledge that he has, but wonders if he has made the best decision possible for the company.

Unfortunately, this is the model that business after business after business has in place. And time after time, what I hear from them is that they are hiring the wrong people or that their turnover costs are too high (if they even measure turnover costs). Did you know that every time an employee leaves your company (whether on their own or asked to leave), it costs your company 5X the employee’s annual salary? SHRM (Society of Human Resource Management) says that an average company will lose 12% of pre-tax income due to turnover alone. That means that a company that does $25 million in pre-tax income will lose up to $3 million because of employee turnover.

Wow! It amazes me how many companies are willing to just accept that it’s okay to lose $3 million and do nothing about it. Making better hiring decisions will reduce the overall turnover within a company, and a big portion of making better decisions is to make sure those internal hiring managers are prepared and confident in their abilities to conduct a strong, legal, and honest interview of potential candidates before making a hiring decision. By providing Interview Training for your managers, this will give them the knowledge and confidence to make better hires, therefore, reducing turnover and the unnecessary financial drain it places on your company. 

I was able to provide training yesterday to a great company in Austin yesterday. They saw the value that this would bring to their organization and made their managers available for about a 4 hour block of time. The word that I received afterward was that the whole office was buzzing about it and that they felt excited about this new knowledge gained. One of their managers is interviewing 3 candidates this week and has already taken the information from yesterday’s training and prepared himself for these interviews. He is much more confident and comfortable with the task of interviewing others now. And I am confident that he will make a great hiring decision as a result!

This is such a simple step that any company can take. It doesn’t take much time. It doesn’t cost much to have me come in and lead this training. Each attendee is provided with a manual that they can refer to over and over after the training has ended. And quite honestly, if I thought it would help my company to keep some of that $3 million rolling down the drain, I’d jump on this in a heart beat. What are you waiting for CEO / COO / HR? Do something about this today!

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