Having a Problem Hiring People? Focus on Retaining Your Talent

Another day, another article on the difficulties employers are facing in terms of filling jobs. Today's headline, Mass. biotech and technology companies are scrambling to fill open jobs, comes courtesy of the Boston Globe. The article talks about the difficulties Mass biotech and technology companies are having in terms of hiring talent.

Really? Tell me something I don't know.

I'd much prefer to see is an article that addresses why employees are fleeing their employers and what companies should be doing to prevent this from happening. Here's why. It's much better (and a heck of a lot less expensive) to take preventive action.

What do you think it costs every time someone leaves your company? Take a guess. Write this number down. Then head over to my free Employee Turnover Calculator . What were your results? How did they compare to your prediction?

Most people are shocked when they realize the true cost of employee turnover.

My mentor Alan Weiss says, "Contingent actions are always very expensive, don't eliminate the problem, and can cause even more problems (water damage after the fire)." I couldn't agree with him more.

According to the Boston Globe article, Biotech is more likely to be relocating executives and scientists from other states — paying a steep price for moving expenses, temporary housing, and costs associated with selling a home somewhere else. At the C-level, companies are giving executives a couple hundred thousand, or lower down the food chain, it’s $50,000. That's a lot of cash and there's no telling how long these people will choose to remain with their employer.

And this number doesn't include the recruitment fees they're paying search firms to help them find these people!

Yet, these same companies hem and haw when asked to invest significantly less on development opportunities that might prevent people from leaving these very same organizations.

Think about what you can do today to prevent your talent from taking the next flight out of your organization. You'll then be well positioned to do what this company in Baltimore has just done. Maryland real estate company surprises employees with $10M bonus to split. No doubt this real estate company will have no problem attracting and retaining employees! Can you say the same?

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