Staff Retention Risk Management
There is a large investment made each time a company hires an employee. It is estimated that companies will spend as much as 10 times the amount of the employee’s salary to train and develop each person that is hired. With so much money being poured into each employee, it is important that the company knows what the odds are that an employee may leave in the future.
Run Background Checks on Employees
The first step in the employee retention risk management process is to run background checks on prospective employees. This will determine if a particular employee has been arrested for a crime, has bad credit or has any other red flags in their background that could make them a risk to leave either voluntarily or because they were fired.
Verify That All Information Is Accurate
You want to make sure that any information that you get about a candidate is truthful and accurate. For example, if someone says that they got a degree from a certain school or spent time in a certain position at their previous company, it would be a good idea to verify that. All it takes is a simple phone call to the school or to that candidate’s previous boss to find if the candidate is telling the truth. If the candidate is lying or embellishing their information, it is easier to cut the cord now as opposed to after the employee has been hired
Partner with Third-Party Consultants
Partnering with a third-party to conduct background checks or to verify information on a resume can help a company save money in the long run. In some cases, it can take months or years for an employer to find out that an employee lied on a resume or during an interview. In some cases, the lie is never found out. While it may not seem like a big deal, the reputation of a company is on the line each time an employee makes a statement about themselves or their employer. Therefore, it is critical that your people are representing themselves in an honest manner.
Knowing that a potential employee is a risk to leave the company before thousands of dollars are invested in that employee is advantageous to a business. For small businesses, the money that is not wasted on a bad hire can go toward providing better benefits for those who stick around and make the company great.