The job market is booming, and according to a 2016 report from the US Department of Labor, unemployment is the lowest it’s been in nearly a decade. While this is great news for job seekers, for enterprises, more options for potential employees have led to higher turnover. The result is that companies face the challenge of perpetually recruiting, hiring and training new employees. It’s not just the monetary costs associated with hiring and training new employees that businesses must contend with; high employee turnover also has a negative impact on productivity and can result in an overall decline in quality of service.
One of the most effective ways employers can stem the tide of employee turnover is providing high-quality incentives. These incentives could take the form of more competitive pay and benefits, as well as rewards and recognition programs. While these programs can be powerful tools for improving engagement and retention, they come with their own costs and need to be managed. When combined with the upcoming minimum wage increase, the costs of hiring, training and retaining employees can seem like an insurmountable obstacle for growing enterprises.
The good news is that businesses don’t have to deal with these problems alone. At Forrest Solutions we can provide relief for organizations struggling with the challenges associated with high turnover. Here are just a few ways outsourcing companies can help.
A qualified pipeline.
In many cases, once a company fills a position, candidates already in the pipeline are forgotten, and managers have to start at the beginning of the recruiting process when someone leaves. Outsourcing companies maintain a stable of qualified candidates across a wide range of roles and expertise ready to be placed within organizations as needed. In addition to a robust pipeline, onsite outsourcing companies fill in the gaps if someone calls in sick, goes on vacation, or when someone leaves a position unexpectedly.
Company culture is a key factor in retaining employees. Culture is even more important when placing outsourced employees. Smart outsourcing companies understand this and work to hire the right people for your organization. Ongoing training and nurturing of onsite outsourced employees, reduces the likelihood of a culture mismatch and improves retention rates. If for some reason, things don’t work out with a particular employee, an outsourcing company should be able to backfill the position to avoid any disruption or inconvenience to your business.
Performance, recognition, and development.
Managing the performance and development of employees has the potential to become a logistical nightmare. The best outsourcing companies do this for you as part of your service agreement that includes a codified expectation of excellence. What’s more, the best outsourcing companies, like Forrest Solutions, also provide recognition and rewards for outsourced employees and provide them with a career progression path as well. In other words, when you outsource operations within your organization, you don’t have to worry about how to incorporate onsite outsourced employees into your regular performance and development programs; your outsourcing company handles it for you.
The booming job market can make retaining employees a challenge for enterprises. Not only do companies have to deal with high employee turnover, they also have to deal with the costs of continually recruiting and training new employees, as well as the cost to morale among regular employees. Outsourcing companies can serve as a pressure-release valve, by providing enterprises with a ready pipeline of qualified candidates, so you can focus on what your business does best.