The decision to fire an employee has a significant cost, to both the employee and the employer. It can be devastating for someone to lose their job, but it can also be tough for a business who needs people to do the work the correct way. If you are in a situation where you are weighing the pros and cons of letting someone go due to performance, there is another option. Rather than firing an employee, it may be better for business to retrain them. Here’s what retraining talent can offer your company as a solution when things just aren’t working out with an employee.
The Cost of Employee Turnover
Something that frequently gets overlooked at this stage of an employee’s job is the cost of turnover. It’s not something that should be taken lightly. Hiring and recruiting staff takes significant amounts of time, effort, and budget to bring someone on board. If they are not working out, it’s essential to evaluate why. Were they not onboarded correctly? Are they not provided with the right resources to do their job? Are they not the right fit for the job? Is there an opportunity to train them into a better fit or a better position?
Costs of losing an employee outright include separation costs. Those immediate costs an employer incurs when an employee leaves, such as severance pay, unemployment insurance claims, continued benefits, etc. They also include costs that businesses might not expect, such as the time other employees spend processing the employee’s termination, time spent conducting exit interviews, and so on. Beyond separation costs, there’s also recruitment or replacement costs, which are those costs that an employer incurs looking for someone to fill the position. The longer the hiring process takes, the more expensive the recruitment costs become.
There are also productivity costs relevant to firing someone, which can be challenging to quantify but which are still relevant to the conversation. These costs include the hours of productivity lost while the position goes unfilled, as well as the time other employees spend trying to pick up the slack. There’s also the time it takes for a new employee to get up to speed once they are hired into a role, which could be anywhere from days to months depending on the role. Compared to the costs of retraining an existing employee, firing someone gets very expensive very quickly.
Onboarding and Training Effectively
Most new employees go through some form of an onboarding process, whether strategic or not. But that process might not be enough to prepare them for the realities of their job. While onboarding is their first experience of the day to day life of an employee in your organization, there are plenty of other opportunities to provide structured education and learnings around how they can perform to the needs of the role. From the organizational perspective, onboarding or retraining experiences should also hyper-focused on actionable takeaways. They should be reliable, repeatable, and most importantly, flexible to meet the needs of the individuals experiencing the transition.
When retraining an existing employee, consider sending them through the onboarding process again. Their additional experience within the company will provide more context for lessons they will learn there, and hopefully, that will help set them up for success in their new role.
Is it Time to Retrain or Find New Talent?
If you’re having difficulty deciding what would work best for your business, you can always consult with Williams Industrial. Our team is accommodating and can provide you with the staffing information you’re looking for!