Attraction and Retention
At Centric HR we believe that developing a strategic attraction and retention plan will help your business, and we can identify and review your current recruitment methods, and work and assist you to design and implement new attraction and selection strategies.
Creating the right mix of benefits is a critical component in a successful long-term plan for attracting and retaining employees to gain a competitive edge over other employers.
What is Attraction and Retention?
Attraction and retention of talent is critical to the success of every organisation. Whilst finding and keeping staff is essential, it’s about finding the right kind of people, people that fit into your company ethos, your culture and future business goals. Selection at early stages is vital to recognise the various attributes of each candidate, such as their qualifications, skills, abilities, experiences, personality, nature and overall attitudes and to ensure that these fit into your clients business plans and strategies.
You need to understand firstly what motivates and inspires people to want to invest themselves in a company. Once you have a strategy including that understanding, then you will know who the people are you want to attract, and the best ways to know how to attract them. Financial rewards may be a huge factor but much more than that are significant opportunities for career development and progression.
Our experience and services include…
Understanding your organisation and supporting organisational design and the right structure and reward system to attract the right kind of candidates.
Designing the selection process from end to end including developing role profiles, adverts, selection process and onboarding.
Designing and running assessment centers for larger scale recruitment projects.
Supporting with panel interviews and selection days.
Support with or carrying out negotiations on packages and contracts.
Producing on-boarding documentation processes, presentations and including contracts of employment.
Reference requests, occupational health and pre-employment screening.
Developing onboarding and exit surveys so that organisations really understand why employees are attracted to your organization, why the stay and how quickly they settle – but more importantly – why they leave.
"When employees are recognised and rewarded, they work harder, and their loyalty to the company increases."
How can this benefit your company?
When employees are recognised and rewarded, they work harder, and their loyalty to the company increases, so finding the right employee and also retaining them is key to that individual playing a vital role in the success of not only their own career but one of a company for years to come. Benefits for professional and career development, flexible work and retirement savings and planning all play a part and are an important factor in retaining employees, with wellness and health benefits also being high on the list.
All of these initiatives have been shown to decrease unplanned absences and increase work productivity. Retention of staff is very important because a high staff turnover is not only disruptive and costly but can often mean losing key skills as well as having an adverse impact on reputation. It’s all about helping to keep staff happy and productive, and in doing so creating an environment where employees want to work. One that recognises people don’t just come to work to make money. They need purpose and meaning. They need to feel valued.
For further information on how Centric can advise and implement a suitable attraction and retention plan within your organisation please contact us here.
Existing studies on 'employee cost' and the cost of replacing an employee..
Some studies, such as the Society for Human Resource Management (SHRM), predict that every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. For a manager making £40,000 a year, £20,000 to £30,000 in recruiting and training expenses.
of annual salary for high-turnover, low-paying jobs (earning under £30,000 a year). For example, the cost to replace a £10/hour retail employee would be £3,328.
of annual salary for midrange positions (earning £30,000 to £50,000 a year). For example, the cost to replace a £40k manager would be £8,000.
Up to 213%
of annual salary for highly educated executive positions. For example, the cost to replace a £100k CEO is £213,000.
What makes it so hard to predict the true employee cost turnover is there are many intangible, and often untracked, associated costs.
What is the true cost of of replacing an employee?
The truth is, there are a wide array of factors a business should consider in calculating the true cost of losing an employee.
To crack the case we used our own mathematics to get to the bottom of things.
Obviously, the first big big cost you have to consider is the salary. While it very much depends on what sort of experience you’re looking for, what level you’re hiring at and the contract specifics, you can assume it’ll be in the tens of thousands of pounds. The most recent government figures puts the average UK salary at £27,721 per year.
The next thing to consider is how you want to recruit your new employee. Do you go through a recruiter, or use up your time? One misconception is that using your own time is the more affordable, but if you value your own time at £100 per hour, the cost to your business of having the owner recruit new staff can get racked up pretty quickly.
Based on the average salary above, a recruiter would usually charge between 20% and 30% to source talent for this position, which overall would cost the business over £5,500. Additionally, if you spent 42.5 hours to find your new recruit, you’re looking at a cost of £4,000 (based on a valuation of your time at £100/hour). Employee costs are racking up.