Retention is Recruiting!

For happier employees, a stable workplace, and big savings, think big picture with each prospect.

When I started thinking about this topic, I wondered if retention is recruiting or recruiting is retention. I decided the two are inextricably intertwined. You need a recruiting strategy and a retention strategy. If you want to be successful, you can’t have one without the other.

Recruiting is expensive.

We’ve talked about this before, but it bears repeating. While it’s hard to determine the exact cost of replacing an employee, there are many estimates and studies. It may cost $4,425, or 33% of annual salary, or one-half to two times annual salary. It depends on which study you look at, what factors they include, and the level of employee you’re replacing. But they all agree on one thing: It’s expensive.

Consider, too, the intangible effect of employee turnover on morale. It’s difficult to measure, but the disruption of losing and replacing employees is real. Some employees may resent carrying extra work while you hire and train. Some may miss a valued colleague and friend. Some will wonder what a new person will mean for their own progress within the company. It will make employees question their own reasons for staying and could make them start their own job search.

Keeping a valued employee is best for your employees, your company, and you.

Think retention from the start.

You’ve recruited carefully and hired the perfect candidate. The skills match, they love your company’s culture, and you’ve agreed on a salary and benefits package. Great. Now, how do you keep them?

Forbes reports that 49% of millennials would leave their jobs in two years. The Bureau of Labor Statistics states that the median number of years an employee stays with their employer is 4.6, although it varies by age group and employment type. Since keeping a valued employee is far preferable to losing one, let’s consider why they might leave.

Why do employees quit?

A wide range of hiring managers, recruiters, HR professionals and other sources commented on the reasons good employees leave. Here are a few of them:

·      Lack of educational opportunities.

·      No opportunities for advancement.

·      Not feeling appreciated.

·      Lack of trust and autonomy.

·      Stress and overwork.

·      Bad management.

·      Poor communication.

So, what should your retention strategy cover?

Look at the list above. Now flip it to the positive side and you’ll have the basics for your retention program:

·      Offer relevant educational opportunities.

·      Demonstrate a clear path to advancement.

·      Foster a genuine sense of worth.

·      Give employees autonomy and responsibility.

·      Make a real commitment to the work/life balance.

·      Provide good management.

·      Communicate frequently and clearly.

You’ll find many more ideas with an internet search, but to get started, take a look at The Balance Careers and CIO.

Learn from exit interviews.

Studies are fine, but you can gain relevant insights from your own employees by making your exit interviews more than pro-forma box-checking exercises. When a valued employee decides to leave, it’s worth finding out why and what you could have done to keep them. Of course, if they are leaving for a fabulous bonus or salary you can’t meet, that may be the end of the conversation.

Remember, you’re on a fact-finding mission. You don’t want the interview to turn into a litany of complaints, but you need to listen and see if a pattern emerges from several interviews. Hint: You may need some prompts to help move the conversation. The list above may help.

Want to go further? Use annual reviews and informal conversations to check in with your employees. A casual remark may reveal more than a formal interview. 

Pathways to success at CrossCountry Mortgage.

We are always looking for talent. The mortgage industry is booming, but there are only so many experienced processors, underwriters, and closers. To close the gap, we have committed to an up-training program for our operations staff.

Motivated job seekers can join at a junior level with no experience and travel a clearly defined route to senior positions. Along the way, we offer competitive pay and benefits, educational opportunities, recognition, and the chance to learn from the best in the industry.

We also offer one more thing: A company culture that values our clients, referral partners and employees. At CrossCountry Mortgage, it’s not just good. We call it “crazy good!”