Saving while opening new roles amid the great resignation
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The Great Resignation is not over yet, at least in Canada. While employees keep jumping ships, companies are desperate to keep them. They spend on many things to prevent them from looking for other jobs. The thing is, there is only so much they can give, and hiring new employees can be expensive.
But do not fret because there are cheaper and creative ways to limit your spending. Salaries and bonuses will not have to suffer in the process. Employees, especially the newbies, can see the beauty in working for your company. Hence, we will take a look at some tips to save money when recruiting.
Do an internal job posting (IJP)
When your company grows and expands, you will need more specific roles for every niche. Chances are, you may consider hiring an outsider. But before doing so, why don’t you consider your loyal employees first? After all, you hired them due to their potential and the skills they can offer to your company.
With internal job postings (IJPs), employee engagement and motivation will increase. In a study in 2016, higher compensation improved short-term retention. A recent survey adhered to it, given that incentives motivate 66% of the respondents. Meanwhile, 12% said they might resign if they find a greener pasture.
But what became clearer is that compensation alone cannot guarantee long-term retention. In reality, employees pine for growth and appreciation. A recent study verified it and found that over 20% of employees leave for career growth. This represents a 170% increase over the past decade.
As such, it is necessary to show your employees that you care about their growth. Increased compensation cannot keep up with the changing needs in the long run. With IJPs, you do not have to pay a higher amount to hire or poach top employees. You can save more and improve employee retention in your company.
Provide some simple yet effective training
Whether internal employees or outsiders, they still need training for their new roles. No matter how promising they may be, you cannot just expect them to learn in an instant. If you hire several people for the new role, you may have a single training session for them. You do not have to schedule separate sessions since it will cost more money.
You may schedule per department or team if there are multiple sessions. If possible, you can include the other staff in a session. In that way, you promote a sense of inclusion and camaraderie. It can help them learn more as part of their preparation and boost their morale.
In a 2020 global research conducted by LinkedIn, training reduced attrition by 53%. Moreso, 96% of Canadians are driven by their experience, including training. It adheres to the first point, given that 81% of Canadian employees value the importance of IJPs. In another study in 2019, career development remained the top reason for employees.
Hire the right person for the right position
The labour market in Canada is a pool of many skilled individuals. In a more commercialized province like Toronto, the hiring process can be overwhelming. With that, headhunters in Toronto must have a keen eye and sound judgment when recruiting. This is most important when companies consider hiring outsiders.
Be more observant because their impressive credentials do not tell who they are. Give a clear description of the job you offer so candidates may understand it better. Otherwise, you may waste more money by hiring the wrong one. You will spend more on finding more suitable candidates.
In a study in 2016, 72% of interviewee managers said they provided clear job descriptions. But, only 36% of the candidates said they got clear explanations.
Make your employees feel safe
Whether seasoned employees or newbies, vaccination remains a pressing issue in workplaces. When opening new roles and departments, employees from different teams will work together. It can become more of a problem when vaccination comes up as a topic. It can become more intense when you hire an outsider due to cultural differences.
With the rise of more anti-vaxxers, the debate in workplaces may intensify. A recent survey reported that almost 70% of Canadians wanted vaccination to become compulsory. Yet, companies must be more careful in assessing the situation. Inclusion and safety must work together to prevent higher turnovers and labour spending.
Build a welcoming and vibrant environment
As odd as it may seem, this tip remains an effective approach to saving money. It works best with increasing employee engagement and retention. When hiring internal candidates, provide more feedback to show support for their growth. In that way, they will stay motivated whether they get shortlisted or not.
When recruiting a new employee, try to interact with them. Talk with them more often to know what they feel and if there is something to improve. A study found that lonely employees are 200% more likely to leave the job. Hence, it reduces turnover and prevents spending more by hiring more new employees.
Labour comprises a large portion of your expenses. Given the Great Resignation, employee turnovers become more expensive. With that, companies must become more sensible when opening new roles and departments. They must keep their existing employees while finding gems outside.
