How to avoid Talent Waste
What is Talent Waste?
Talent Waste affects organisations across all industries. It occurs when an employee leaves an organisation prematurely due to that business not being able to retain them.
- Between 30% and 45% of employees leave organisations within the first year – Office of National Statistics
- 80% of employee turnover is due to bad hiring decisions – Harvard Business Review
- Bad hires cost a business in excess of £12,000 per year – Chartered Institute of Personnel and Development
Why does Talent Waste Exist?
Talent Waste exists for a number of reasons, and can be the result of:
- Poor hiring decisions
- Bad cultural fit
- Unconscious bias
- Inefficient on-boarding processes
- Lack of learning and development pathways
Why is Talent Waste a problem?
Talent Waste has a detrimental impact on organisations, and is the single biggest reason organisations are not developing and expanding as they should.
- Cost to business of rehiring and retraining
- Drain on time and resources
- Impact on quality of work
- Reputational damage
- Lack of workplace productivity
- Low calibre of employees
The benefits of reducing Talent Waste
Cost Reduction - An intrinsic part of reducing Talent Waste is the reduction of costs. The cost of a bad hire can be astronomical to a business, especially at senior levels. Costs include training and implementing staff into your business, buying additional equipment for new starters, and paying interim or agency staff when individuals leave the organisation.
Time Saved - Reducing Talent Waste will ensure your business is running efficiently. That means less time spent on hiring and interviewing candidates, training and onboarding new starters, and reducing administration processes. The productivity of your workforce will also be positively impacted, meaning more time spent on projects that will help your business grow.
Quality Assured - By reducing Talent Waste, you can help ensure your organisation is working with the best people. That means staff that are knowledgeable and productive, and strive to learn and develop in their role. You’ll see an enhanced quality of work produced by a world class team of individuals that know and love your business. Enjoy an excellent reputation both as an employer and with customers.
How can organisations reduce Talent Waste?
Talent Waste can be significantly reduced by hiring talent aligned to your organisation’s culture, values and skills. A structured assessment and development model will ensure staff are motivated and productive, leading to increased productivity and retention.
Talent assessment platforms like Phoenix51 enable organisations to make data-driven decisions along the employee journey, from hiring through to benchmarking and development. With the average costs of re-hiring estimated to be £12,000 per employee, Phoenix51 offers instant and measurable return-on-investment.