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The real cost of replacing lost talent

Monday 3rd July 2017

In a recent Hays Survey, 51% of organisations faced challenges in finding the right staff over the last 12 months; 47% found recruiting challenges being a lack of sector skills and experience.

Retaining talent is much easier and less costly than replacing talent, it is also less risky and time-consuming.

If you even have a Procurement Department of around 20 people and you lose 10%, it will still cost you in the region of £8,000-£12,000 in recruitment agency fees to replace them. That is £12,000 out of a budget that probably doesn't actually exist, not to mention the time taken in:
• Reviewing CVs.
• 1st interviews,
• 2nd interviews
• Managing continuity
• Stakeholder communication
• Probationary Reviews

Not worth thinking about........

How do we stop the churn?
If you were to put the £12,000 budget together for talent retention what would it look like?

Training and development?
Fact: 61% of candidates surveyed would choose to move to a company that is committed to training and development

Succession planning /career ladder structure?
Fact: 71% of employees surveyed said they wanted to progress to a more senior role

Employee engagement and alignment?
Opinion: Employees who are engaged and aligned to clear business goals are happier and more productive, and have more constructive relationships with stakeholders.

Employee satisfaction and retention
Fact: 50% of procurement professionals surveyed were looking to move jobs in the next 12 months

All of the above could significantly reduce the risk and costs associated with losing valuable talent.

If you haven't got a Talent Management Plan, then make sure you have a recruitment budget!