The latest thinking, news and events from the world of Recruitment

Could You Be Doing More To Enhance Your Personnel Selection?

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As many businesses know, employees are their biggest asset. Pick the right ones to invest in and you’ll be rewarded for years to come. Choose the wrong ones, and the costs begin to stack up – some may even see a negative return.

So the question naturally arises

“How do you test if your recruitment process is working for you? And if it isn’t, how can you improve upon it?”.

Well, calculating your employee turnover rate is a good start.

A method for this calculation, as prescribed by People HR is as follows:

  1. Work out your average headcount
  2. Add up your total number of leavers
  3. Divide your leavers by your average headcount
  4. Multiply this figure by 100

We’ll work out an example together:

  1. Average headcount = 53
  2. Total leavers = 17
  3. Leavers / Headcount =0.32
  4. Multiply 0.32 by 100 = 32%

As we can see, this is not a great turnover rate and I’m sure there would be a ton of meetings to see how you can improve your retention.

There may be some things you can do for your current employees (anonymous questionnaires – with helpful suggestions is a good start). However, it could be as simple as changing your approach to recruiting your candidates – as it’s likely this problem started many years earlier.

Typically there’s an over-emphasis on prospective employees to match KSA’s of the person specification. Not much thought often goes towards the person – organisation fit.

So How Can You Apply Person – Organisation Fit To Boost Your Employee Retention Rate?

Well first we need to understand what a person-organisation (p-o fit) is. HR.com defines it as the compatibility between employees and their organisation. Such as having similar values and sharing the same characteristics of their coworkers.

The benefit of this, is you create a stronger sense of community, increased commitment and of course a lower turnover rate. It’s a way of looking at your company and going

“What’s within these people that’s working so well? And how can I recruit more people like this?”

A lot of recruiters try and screen for this naturally, and it’s likely you do too. Asking simple questions like “How well do you work within a team” and “Are you the type of person who will go for drinks after work on a Friday” is a very typical line of questioning.

But look at it from the candidate’s point of view; are they ever going to say no? Of course not! They’re after that job, so you’ve got to screen for it harder.

There’s a growing trend with the likes of FTSE companies using competency based questions and psychometric questionnaires on their top performers. Then, testing each candidate to see how well they match up to existing staff answers.

It doesn’t matter if they’re competent enough for the job. If you don’t match the answers your existing staff have provided, you’re out! It’s why the likes of Autotrader and Apple have some of the highest staff retention rates.

It’s so cheap to do too. There isn’t a need to hire any expensive business consultants, you can download a couple of questionnaires (one personality and the other aptitude), email them over to your top performers and work out their average result for each category.

The total investment? A couple of days. Which, when you compare it to the lost resources on training, paying recruitment consultants, salaries etc Is a huge win for your company.

And lastly, set a reminder to use the method as prescribed by People HR to re-test your employee turnover rate in the year(s) to come. This way you can measure how well the (p-o fit) is working for you.