By Michael Disparano, Executive Vice President, Environmental Services
Turnover continues to be a challenge faced by many companies. When the loss of staff impacts the results of the organization, it can go from being a burden to a major issue. To prevent unsatisfactory performance, the use of technology can play a large role in driving reactionary thinking to become more proactive.
A best practice I’ve utilized with my team is a routine cadence of reviewing housed data via our Einstein Analytics (EA) Human Capital Management (HCM) Dashboard to see how often, at what point, and the reason why we are losing our people. Through the integration of maintained employee records, tracked staffing challenges, and detailed statistics from recruiting efforts, we have built reports that address turnover trends. Having this consolidated data easily accessible allows me to better evaluate challenges and find proactive solutions to staffing issues.
For example, based on historical turnover rates, an organization may find that they expect to hire two new employees each month. By using that data and working backwards, the company can determine the best strategic approach for the future. If the data shows that for every four people in-process, only two are hired after review and training, then this provides a conversion rate of 2:1. Using that data point, the organization can determine that only half of the individuals processed are viable for employment.
Now, if the conversion rate is still 2:1 between the number of applicants and interviews, then the company will know it needs to interview eight applicants to yield four viable candidates for training, making the total number of applicants needed each month 16.
Broken down the ratio would look like this:
16 applicants will result in 8 interviews
8 interviews will result in 4 individuals in-process for hire
4 individuals in-process will result in 2 new hires
By utilizing technology and the abundance of data, the company can now set tangible goals for their leaders that will allow them to get on the offensive and hire employees on their terms versus out of absolute necessity. With all these systems working together in real-time leaders are able to stay on-track with their staffing goals and are able to remove obstacles that stand in their way. Consider taking this approach when determining how to best manage your staffing challenges. As a result, it’ll create a proactive solution and keep your business ahead of the problem.