Extensive Hiring Strategies Help Enhance Employee Retention Rates

by: Nichole Gunn March 21, 2011

According to the Bureau of Labor Statistics, U.S. job openings have increased almost 26 percent between June 2009 and June 2010. Along with this, close to 15 million people are looking for jobs.

These statistics show that businesses are in the throes of hiring new employees. But, they are looking for more than just an employee; the successful business leader is looking for a candidate whose personality and abilities are a match between the company’s culture and the “right technical skills and experience for a position.”

While it might seem an easy task in a recovering economy, according to a 2008 PricewaterhouseCoopers survey, 25 percent of new hires are either terminated or leave of their own accord within the first year of employment – this has proven true even during the recession.

New hires need to be the ‘right fit’ to establish and maintain high employee retention rates. Companies that enjoy the benefits of loyal employees create comprehensive hiring strategies and initiate effective loyalty programs that help to ensure the new hires will be a long-term investment.

All this involves a clearly defined extensive hiring process.

Included in the process is the strategy of informing the potential new hire of the company’s operating culture, along with assessing the potential new hire’s personality. It also involves effective workplace training to help new hires fit in and feel confident in what job responsibilities are expected.

Marcus Erb, writing for Entrepreneur Magazine explains that successful business leaders focus on recruiting philosophies such as, “hire for attitude, train for skill," and "hire our type of people."

A transparent approach is always the best way to go; it avoids misleading the new hire, or having him/her misunderstand how the company works. With a clear-cut understanding of the company’s culture and the position’s objectives, new hires and the employer will be a position to have a long and fruitful working relationship.