Retention Begins Before The Job Interview?

Retention has become a pivotal challenge in today’s corporate landscape, but the company’s biggest competitor is “business as usual”. With turnover costs mounting and the competition for top talent intensifying, organizations must rethink their retention strategies. Standard approaches to retention have been deemed subpar for today’s volatile market, evolving employee needs, and growing business demands in this economy. Organizations typically default to compensation, highlighting benefits and rewards. As research shows, compensation and benefits are no longer the top driving forces for employment loyalty, now what? What if I told you, that retention strategies begin at the job interview??

The Interview: The Crucial First Step in Retention

The job interview is more than a platform for assessing candidates' skills and fit; it is the first opportunity to set the stage for a lasting employment relationship. Research indicates that job seekers often form opinions about their likelihood of staying with an employer based on their interview experience. According to a study by the Society for Human Resource Management (SHRM), 60% of candidates report that their interview experience significantly influences their perception of an organization. First impressions matter.?

A survey by the Talent Board shows that candidates who have a positive interview experience are 38% more likely to accept a job offer and are 50% more likely to remain with the company after three years. These statistics underscore the importance of creating an inclusive, transparent, and engaging interview process that attracts top talent and sets the stage for long-term retention.

Factors contributing to candidate drop-off rates and increased turnover:?

• Companies with interview processes that extend beyond 27 days see a 50% drop in candidate interest compared to those with shorter timelines. (Glassdoor)
• 69% of candidates are more likely to apply to a company again in the future if they have a positive experience, even if they don’t get the job. Conversely, lengthy and complex interview processes can tarnish an employer's brand and deter future applications. (Talentegy)
• 49% of job seekers cited "long interview processes" as a primary frustration during their job search, and many would reject an offer if the process took too long. (LinkedIn Global Talent Trends Report)
• Companies with diverse and inclusive interview panels are 70% more likely to capture new markets, indicating a broader appeal to job seekers. (Harvard Business Review)
• According to Gartner, organizations with a well-defined EVP can reduce their annual employee turnover by nearly 70% and increase new hire commitment by nearly 30%.

The interview process is a critical touchpoint in the candidate experience, significantly influencing a job seeker's decision to accept or reject a job offer. Lengthy, subpar, non-inclusive, and cumbersome interview processes can deter top talent and impact an organization’s ability to secure and retain high-quality candidates.?

Prioritizing Retention and Development Over Hiring

We have seen and worked with organizations that often prioritize hiring over retention, a strategy that can be short-sighted. When a vacancy arises, the default response is typically “go to market”. While hiring talent is crucial, retaining and developing existing employees is equally, if not more, important. A report by the Work Institute states that 77% of the reasons for employee departures are preventable, emphasizing the need for proactive retention strategies.

Human Resources functions in Talent Development and Learning and Development that prioritize continuous development and growth for all talent?

To appreciate the urgency of addressing turnover, it's essential to examine turnover rates across different industries. High turnover rates are not just a financial burden but also disrupt organizational continuity, erode morale, and compromise service quality.

Turnover Statistics:

1. Hospitality: The Bureau of Labor Statistics (BLS) reports an annual turnover rate of 73.8% in the hospitality sector.
2. Retail: The retail industry faces a turnover rate of approximately 60%, according to the National Retail Federation.
3. Healthcare: The turnover rate in healthcare is around 20%, with nursing positions experiencing even higher rates, as per a study by NSI Nursing Solutions.
4. Technology: A LinkedIn survey highlights that the tech industry sees an average turnover rate of 13.2%, influenced by the high demand for skilled professionals.

Investing in employee development leads to a more skilled and capable workforce, driving higher performance and productivity. Employees who see a clear path for growth and feel supported in their development are more likely to stay with the organization and remain engaged in their work.

Enhance The Employee Experience Across The Employee Lifecycle

When Human Resources leaders take a holistic approach to retention through the lens of the entire employee lifecycle, the retention strategy becomes comprehensive and proactive. By integrating a retention lens into the EVP that attracts talent, the workplace culture, and talent decisions along the employee lifecycle to the stay and exit interviews, retention becomes more than a strategy, it becomes an organization’s way of working.?

As previously mentioned, compensation and benefits are no longer employees’ primary objectives as people continue to evolve up Maslow’s hierarchy of needs, the workplace culture, the need to be an individual and recognized and celebrated as such; an inclusive, equitable and psychologically safe experience across the entire employee lifecycle is the priority and the key to retaining top talent.

Conclusion

Retention begins at the job interview, and organizations that recognize this can significantly reduce turnover and build a thriving workforce. Become creative, analyze every touchpoint including daily interactions develop an intentional and proactive approach to retention. Implementing structured onboarding programs, continuous learning opportunities, clear career paths, recognition programs, work-life balance initiatives, a positive workplace culture, employee engagement activities, and robust wellness programs are essential strategies for enhancing retention and development. These efforts not only improve employee satisfaction and loyalty but also contribute to the overall performance and success of the organization. By prioritizing retention and development over hiring, fostering a positive workplace culture, and ensuring psychological safety, equity, and inclusion, companies can create an environment where employees are engaged, satisfied, and committed to staying.?

Written by

Shayla N. Atkins, PHR, SHRM-CP, LSSBB

Founder, CEO, The Atkins Impact Consulting Firm

Principal Organizational Development Consultant

Learn More: www.theatkinsimpact.com

Sources:

• Glassdoor. (2020). Diversity & Inclusion Workplace Survey.
• LinkedIn. (2021). Global Talent Trends Report.
• Talent Board. (2021). Candidate Experience Research Report.
• Harvard Business Review. (2018). How Diversity Can Drive Innovation.
• Robert Half. (2020). The Costs of a Lengthy Hiring Process.
• Glassdoor. (2019). Why Do Candidates Withdraw from the Hiring Process?
• LinkedIn. (2020). Global Talent Trends Report.
• SHRM. (2019). Talent Acquisition Benchmarking Report.
• Talentegy. (2020). Candidate Experience Report.