When you invest in hiring the right people, your recruitment ROI will be enhanced, and your team set up to flourish and outperform your competitors. Losing an employee due to a poor hiring decision can cost more than twice their annual salary, but the impact of turnover is far more than just monetary. Here’s what can happen when you hire the right people the first time.

High-Turnover Comes at a Cost

According to Josh Bersin, employees need to be seen as appreciating assets, not replaceable commodities, underscoring the importance of recruitment ROI. The longer an employee is with your organization, the more value they bring to your table, so it’s crucial that you choose employees who are in it for the long haul.

However, in 2022, the average employee turnover rate across industries was 47%, which jumped to 63% for Professional and Business Services. These numbers are remarkably high, especially considering an acceptable employee turnover rate for an organization is typically 10%. 

High levels of turnover typically come in response to poor hiring decisions and bad management.

Optimize Recruitment ROI with Role-Aligned Candidates

Candidates are often selected based solely on experience and education, but this approach ignores several key pieces of the puzzle that determine how long an employee sticks around. Experience and education can only get you so far. A candidate may look impressive on paper, but if their role does not drive them, they will eventually leave for greener pastures.

On the flip side, candidates who are hired based on how well their natural abilities align with a role are far more likely to be fulfilled and energized by their job. According to the 2023 OC Tanner Global Culture Report, employees with high fulfillment stay three years longer and are 322% more productive. These employees are the bedrock of your organization. Team members who genuinely enjoy their work will stay with your company long-term and be your biggest champions. By placing a strong focus on identifying, hiring, and developing these individuals, your organization will be set up to maximize its recruitment ROI and build a workforce that’s set up to thrive.

Elevate Your Employer Brand

Losses due to turnover aren’t simply due to the high price tag associated with replacing a lost team member. When employees leave your organization, it incurs a whole host of hidden costs, like depleted team morale and a wounded employer brand. 

But when candidates enter your organization and choose to stay, it signals to those outside the company that it has a positive environment with an excellent culture. When your employer brand speaks for itself, it becomes far easier to attract high-quality candidates. So how do you ensure that your team members stay?

Keeping Your Talent

Employees that are given continual opportunities for growth will be committed to the organization and will be able to apply their depth of knowledge to a wide range of tasks. Lack of growth opportunities and recognition is a significant factor in many employees’ decision to leave an organization. Employees need to feel valued, and when they have stagnated in their role and are not given recognition and opportunities for development, they will disengage, increasing the likelihood that they will quit.

Employees hired from within the company are also more likely to stay than external hires as they have a deeper understanding of what they can expect from the role and the team. In addition, managers have an accurate picture of the capabilities and disposition of internal hires, increasing the likelihood that they will be a good fit for the role.

The benefit of internal hiring is twofold. It boosts recruitment ROI within an organization by decreasing employee turnover through increased opportunities for growth and it promotes positive employee perceptions of the company, thereby boosting employer brand.

Build Recruitment ROI at the Top

Each time an employee leaves your organization, it can cost hundreds of thousands of dollars in recruiting and training fees to get their replacement up to speed, and even then, it may be months or even years before they are at the same level of knowledge and productivity as their predecessor. 

An employee's departure often also results in missed deadlines and lost productivity for their team as they adjust to being short a member. And when a new candidate is eventually hired, the team must adapt once again to a shift in workload and dynamics.

Reducing these costs starts at the top of the recruitment funnel. When you take the time upfront to ensure that the best fit for each role is selected, turnover rates dramatically decrease.

Recruit from Within

Of course, this doesn’t just apply to applicants outside the organization. Effective recruiting means considering all candidates for a role, both internal and external, to ensure that the one selected will have the greatest impact.

These practices will have a significant impact on the recruitment ROI of your organization. From saved costs to increased employee commitment and morale, its benefit will be evident throughout the entire company. Perhaps the most prominent effect of these changes is that your teams will be filled with employees who genuinely want to be there. When people are matched with roles that naturally drive them, they will be excited to come to work every morning and remain committed to accomplishing their goals.

Boost Recruitment ROI with Plum

It may seem daunting to implement changes to your recruiting process, but with the right tools in place, it doesn't have to be.

Plum's talent assessment platform is revolutionizing the hiring space. By comparing employees' innate talents to roles across teams and departments, it ensures that each person is in the place where they can make the most significant impact and increases retention by 77%.

Check out our ROI calculator to calculate your recruitment ROI with Plum.