mis-hires & turnover

Recruiting expenses account for 30% of the average organization’s HR expenses.

36%

It costs 36% more to hire someone than it did 5 years ago

$4,425

Average Cost Per Hire

$14,946

Average Cost Per Executive Hire

And it’s even more costly with traditional “headhunters” and contingent recruiters

  • Recruiting fees average: $20,283
  • Average fee percentage: 21.5%
  • Average starting salary: $93,407

These traditional methods are costly and ineffective. TalenTrust is shifting the paradigm with a proven process, guaranteed outcome, and predictable pricing structure.

“We’ve hired some incredible people and we never would have found them without TalenTrust. These individuals have contributed quickly and exceeded our expectations. The ultimate success of our partnership is reflected in the success of the people we have hired.”

Clynt Taylor CEO, Intervention Insights

Bad/Wrong Hires

46% of new hires fail within 18 months. They fail by not producing at the level they were expected to; they quit or they are fired. Within the first 45 days of hiring, failure rates are as high as 20%. Only 11% of unsuccessful hires are attributed to insufficient skill, while 89% of unsuccessful hires result from lack of coach-ability and irreconcilable temperament. 

When companies hire from the top 20% of their candidate pool, they see 41% less absenteeism, 17% higher productivity, 21% higher profitability, and 59% less turnover. 

Improve candidate selection and reduce employee turnover with training, tools, and process from TalenTrust. This includes the use of predictive assessments to ensure candidates are aligned with your culture, your environment, and the job at hand. Ensure that everyone across your team makes consistent, quality hiring decisions with confidence.  

Turnover Costs & Rates

Companies typically spend 6-9 months of an employee’s salary to hire and train a replacement, according to the Society for Human Resource Management.

Josh Bersin, a leading researcher on human resources and talent management, says the cost of replacing an employee ranges from tens of thousands of dollars up to 1.5-2 times their annual salary. 

Why is employee turnover so costly? Bersin explains that employees are “appreciating assets. The longer we stay with an organization, the more productive we get – we learn the systems, we learn the products, and we learn how to work together.”

Partner with TalenTrust to ensure you have a pipeline of candidates available, so turnover doesn’t lead to a crisis. We treat recruitment as an ongoing and strategic sales process. We identify prospective employees (those passive candidates), develop a strong employer value proposition (why work for you) and engage through compelling outreach (calls, texts, emails, events) and nurture them through a process to determine if they are a great fit for your organization.

Failed Onboarding

Most companies don’t offer a structured onboarding plan to bring new hires up to speed and protect their investment.

New hires are 46% more likely to stay when they complete a structured onboarding process.

Effective onboarding programs increase employee performance up to 11% and increase discretionary effort more than 20%.

TalenTrust can develop an onboarding playbook to set your new hires up for success in their roles and in your culture. This robust onboarding program features best practices, resources, and templates that can be applied immediately, plus six months of support. Successful onboarding acts as an insurance policy for your recruiting process, and results in increased employee engagement and decreased turnover.

Questions to ask yourself

  • How do you build effective teams?
  • Do your hiring managers know what “good” looks like? 
  • Do you hire based on data vs gut?
  • Do you use predictive assessments to ensure people are in the right roles? 
  • How do you benchmark for high performance?
  • Are assessments used in your hiring, onboarding, training/development, and succession planning? 

Advice on turnover? It's in the book.

“The most common estimate is that it costs on average 150% of the salary you pay a person to replace him or her. That is the cost of turnover, which directly impacts your profitability. When you engage your employees, you will save those turnover costs. Engaging employees isn’t just a nice thing to do. It makes business sense.”

Kathleen Quinn Votaw, CEO, TalenTrust