Power Tools & Tips for Workplace Leaders
Hire. Train. Retain.

What does Employee Turnover Mean for Small Businesses?

Owning a small business is an exciting thing. Unfortunately, many small businesses close each month due to several factors. One of which is employee turnover!

If you are a small business owner, the looming danger of turnover costs slowly eating away at your business is real and should be addressed. Knowing how turnover affects you and your costs can save your business from this very expensive, unseen risk.
According to Harvard Business Review, 80% of employee turnover is related to poor recruitment decisions. The Society for Human Resource Management reports that on average:

  • 36% of new hires fail within the first 18 months.
  • 40% of senior managers hired externally fail within 18 months of being hired.
  • It costs on average one-third of a new hire’s yearly salary to replace them.
Tips to Decreasing Employee Turnover!

Recruitment Tips:
  • Review the job description to assure you know what you are looking for
  • Utilize an applicant tracking system to streamline the process
  • Ask the right questions during the interview process
  • Move quickly and efficiently to avoid missing out on the perfect candidate
  • Utilize pre-employment assessments on top candidates
  • Check references and conduct background checks
Additional Tips:
  • Offer a competitive benefits package
  • Provide some small perks
  • Foster employee development
  • Promote from within
  • Recognize good work
  • Interact with your employees
  • Consult with a Human Resources Professional!
The Alternative HR Team
Alternative HR can assist you not only in finding great talent but we can also help you put processes in place to retain them!

Our experienced staff is able to set you up for future growth, remove some of the burden from your leadership team, help you stay legally compliant and can assist you in developing your staff!  

Contact us today at 605.335.8198 or visit our website for additional information about our recruiting and screening services!