Why would an employer want to retain current employees rather than recruit and hire replacements?
For starters, there are hidden costs associated with hiring just one employee. For every lost employee, a business will have advertising and administrative expenses to replace that employee such as the following: • time spent reviewing and/or revising the job description; • time spent drafting the ad; • costs for running the ad; • time and resources required for reviewing the resumes; • time and resources required for interviewing the applicants; • expenses related to background checks; and • on-boarding, orientation and training, etc. The bottom line is that businesses are looking to increase revenues. As mentioned above, the recruiting and hiring expenses to replace just one employee are substantial, which end up cutting into revenues. In addition to that, an organization’s experienced employees are more likely to have higher productivity levels, which help bring in increased revenues. On the other hand, I’ve seen how an organization’s profit and loss statements can be negatively imp
Related Questions
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