How to Reduce Acquisition Costs and Retain Top Performers

Did you know a company’s greatest asset walks out the door every night?  That’s right, your employees are the driving force behind your success.  

Companies become successful and reach milestones because of the people working at their company. A company with a weak workforce, lacking top talent, struggles to achieve the same level of success as companies with skilled employees. Building a strong workforce is crucial, but finding and retaining these smart, skilled, and experienced individuals can be challenging and expensive.

So, you might be wondering: is it possible to reduce acquisition costs, retain top talent, and attract new talent simultaneously? The answer is yes! This blog will explore strategies to achieve all three.

Strategies for Lowering Hiring Costs:

1. Take your top talents help: Smart and talented people usually know other smart and talented people. So, in case of a vacancy in your company, your HR team should reach out to such employees and ask them to refer qualified candidates for the vacant job. This might help you get top talent faster, at a reasonable cost (which is obviously less than doing the proper hiring process, screening them, testing their skills, and interviewing them), which takes a lot of time and resources.
   
2. Free & Low-Cost Platforms: Utilize platforms like Indeed, Glassdoor, or Upwork to reach a broader pool of qualified candidates. Do that by using these platforms as cost-effective ways to advertise your openings.
   
3. Social Media Recruiting: Professional platforms like LinkedIn are excellent for targeting specific skill sets. Explore social media platforms like Facebook or Instagram for broader reach, keeping in mind your company culture and brand message at the forefront.
   
4. Clear and compelling job descriptions: Many potential candidates lose interest when job descriptions fail to clearly outline the roles, responsibilities, and benefits offered. By providing a detailed and accurate description of the position, you’ll attract the right candidates who are genuinely interested in the job and a good fit for your company.
   
5. Streamline Your Interview Process:
   
   1. Pre-Screening: Implement efficient pre-screening methods, such as online assessments or phone interviews, to quickly identify promising candidates. Do that to eliminate time wasted on irrelevant applicants.
      
   2. Focus on Skills: The interview should assess a candidate’s skills and cultural fit. Utilize practical skills assessments or scenario-based questions to evaluate their abilities beyond a resume. Do that to ensure you’re hiring the best person for the job.

This proactive approach will help you identify qualified candidates from the start, reducing the need to repeat the hiring process later.

6. Invest in employee retention: Just like when you hire the wrong candidates, sometimes these same employees leave or have to leave the organization, either after being fired or for other reasons. This can lead to you having to hire again. To avoid this and the need to start the hiring process over constantly, you should create a positive work environment and offer competitive salaries and benefits. This will make them feel happy and comfortable, ensuring they won’t leave.
   
7. Promote rightful candidates during vacancy: Sometimes, certain employees leave for better salaries and benefits. In these cases, instead of hiring a new employee, see if there’s an existing employee with the skills, talent, and qualifications to take on the departing employee’s responsibilities. This can save you the cost of hiring a new candidate.
   
8. Consider alternative hiring: For temporary projects or specific needs, consider hiring freelancers or contractors instead of full-time employees. This can reduce hiring and payroll costs. Examples include hiring a graphic designer for a design project or a company secretary on a part-time basis. 

How to Attract Top Performers:

1. Offer Competitive Salaries: Top talent is attracted to competitive salaries. Conduct thorough industry research to determine the typical salary range for the position you’re hiring for. Consider the specific skills and experience you require, as well as the potential value this candidate can bring to your company. Based on these factors, develop an attractive and competitive salary package to attract top talent.
2. Cultivate a Strong Employer Brand: In today’s competitive landscape, a company’s reputation as an employer is just as important as its brand image. A positive employer brand attracts top talent and reduces recruitment costs. Here’s how to build a strong employer brand:
   1. Treat Employees Well: When you prioritize employee well-being, respect, and growth opportunities, word gets around. Happy employees become your best brand ambassadors, attracting others who want to be part of a positive work environment.
   2. Showcase Your Culture: Highlight your company culture through social media, employee testimonials, and your careers page. Let potential candidates see what it’s like to work for your company.
   3. Be Transparent: Communicate openly with candidates throughout the hiring process. This builds trust and establishes your company as one that values applicants’ time and effort.
3. Go Beyond Competitive Compensation:  While salary is important, top talent is attracted to a comprehensive benefits package that goes beyond just the paycheck. Offer a combination of competitive benefits and attractive perks to stand out from the competition. This could include:
   1. Benefits: Health insurance, paid time off (PTO), retirement savings plans, disability insurance, and life insurance are essential components of a strong benefits package.
   2. Perks: Consider offering flexible work arrangements, professional development opportunities, on-site wellness programs, social events, free or subsidized meals, discounts on company products or services, and even on-site amenities like gyms or laundry services.
4. Invest in Employee Development:  Top talent seeks companies committed to their growth.  By demonstrating that you care about employee development, you’ll attract and retain high performers.  Offer a variety of learning opportunities, including:
   1. Skills Training: Provide training programs that keep employees current on the latest technology and industry trends.
   2. Professional Development Courses: Invest in courses that equip employees with valuable skills relevant to their career aspirations.
   3. Mentorship Programs: Pair experienced employees with newer ones to foster knowledge sharing and career guidance.
   4. Conference Attendance: Support employee participation in industry conferences to broaden their knowledge and network.
   5. Webinar: Offer opportunities for employees to attend webinars led by experts. This will help them stay up-to-date with the latest industry changes and developments, improving their knowledge and skillset.
5. Craft a Meaningful Vision:  People are increasingly drawn to work that has a positive impact beyond just generating profits.  By articulating a clear and inspiring vision that addresses a social need or makes a difference in the world, you can attract and retain top talent.

How to Retain Top Talent and Break the Turnover Cycle

High employee turnover is a double-edged sword. Companies lose not only the talent itself but also the valuable knowledge and experience those employees have accumulated. New hires need time to learn the ropes, often taking months to reach their full productivity level. This lost productivity, coupled with the time and resources spent on recruitment, significantly increases payroll costs. To break this cycle of high turnover and its double-edged sword effects, companies should prioritize investing in employee retention strategies.

1. Competitive Compensation:

Conduct thorough research to offer salaries that are attractive within the industry and reflect the employee’s skills and experience.

2. Comprehensive Benefits and Perks:

Go beyond the basics like health insurance. Offer perks that cater to employee well-being, such as flexible work arrangements, professional development opportunities, or wellness programs.

3. Recognition and Appreciation:

Publicly acknowledge and celebrate employee achievements. This fosters a sense of accomplishment and motivates them to excel and also creates a sense of loyalty towards the company. 

4. Positive Work Environment:

 Toxic work environments do nothing good but harm and make good employees leave. That is why you should Create a culture of respect, collaboration, and open communication. Employees should feel comfortable voicing concerns and contributing ideas. Actively listen to their feedback and address issues promptly.

5. Career Advancement:

Implement clear career paths that outline opportunities for growth within the company. Offer promotions and salary increases based on performance and experience.

6. Connect with the Company Vision:

Help employees understand how their role contributes to the company’s larger goals. This fosters a sense of purpose and ownership in the company’s success. And also make them loyal to the company. 

By implementing these strategies, you can create a work environment that retains top talent. This not only reduces costs associated with high turnover but also fosters a more engaged and productive workforce.

Closing Thoughts

Building a strong employer brand is an investment, but the payoff is significant. By focusing on reducing acquisition costs, attracting top talent, and retaining your best performers, you can create a competitive advantage in today’s job market. By implementing the strategies outlined in this blog, you can attract, retain, and develop a high-performing workforce that drives your company’s success.

Hiring Smart & Keeping Your Stars