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How to recruit and retail top-quality employees

by KRISTI ALBERTSONThe Daily Inter Lake
| March 19, 2006 1:00 AM

Finally.

After weeks of advertising and interviewing potential candidates, you've filled that position at last. The hard part may seem over, but it really has just begun.

It's not enough to simply attract a good employee. The real challenge, according to Kristin Donahue, is to keep them around.

That's what Donahue told the 10 people who attended "Catch 'em and Keep 'em - How to Recruit and Retain the Best," a business development class held Tuesday morning by Flathead Valley Community College workforce. Donahue holds a master's degree in human resource development and has experience in both recruitment and retention.

Focusing on retaining good employees is less expensive than recruiting new workers, Donahue said, so companies should spend more money in this area.

"We so often think we have so little to spend on retention, but we do (have the money)," she said.

It costs between 20 and 200 percent of an employee's salary to replace them when they leave, she said. The average cost to replace a worker is 30 percent.

To calculate annual turnover cost, employers should multiply the average employee salary by the number of employees lost each year, then multiply that total by 30 percent, Donahue said.

Whether employees will remain with a company is often determined in their first week on the job, she said. This is when employers, coworkers and the job itself create a lasting impression.

"Those first few days are critical," said Donahue, who once worked as a retention specialist at a hospital in Fort Collins, Colo.

The first six months, then the first year, are when turnover is highest, Donahue added, so employers need to take time to notice and encourage new employees.

One thing that must be done, she said, is answering employees' "burning questions." These are the things employees want and need to know but are often afraid to ask. Make sure to tell workers about vacations, sick leave and holidays, Donahue said.

Managers and coworkers also need to integrate the new employee into the company as quickly as possible, she said.

"This is where, if you have a good process, you can really knock their socks off," Donahue said.

Giving them a few items with the company logo on it is one way to give people a feeling of belonging, she suggested. Taking time to express appreciation is another option.

"Make people feel like you're truly glad they're here," Donahue said.

This shouldn't be just the manager's responsibility, she added. Coworkers should be involved in encouraging new employees and one another.

"What you ultimately want to do is make it a culture," she said. "It's the way we do things here."

Managers do carry the bulk of the retention responsibility, though. Nearly 50 percent of job satisfaction is based on how an employee relates to his immediate supervisor, Donahue said.

Because of this, supervisors need to become approachable. Employees must feel like they can approach their managers and make suggestions, she said.

"Are you open to change?" Donahue asked. "Are you open to their suggestions? Are you open to their ideas? Or are you saying, 'Yes, but … ?'"

Instead of responding to suggestions with "yes, but," Donahue said, managers should say "yes, and." This encourages employees to make suggestions because they feel like they're actually listened to.

"Think about how often we say, 'Yes, but … '" she said. "My challenge to you is to think about how you can be more, 'Yes, and … '"

The class looked at classified ads to determine which were most effective. Clearly identifying the position, listing wage and some benefits and specifying how to apply were key, they decided.

Writing a good ad is important, Donahue said.

"Your first contact with them sometimes is your ad," she said.

As for interviewing, Donahue encouraged the class to ask open-ended questions.

"You're going to get a better response," she said. "You're going to get more information back from that person."

Of course, that information is worthless if the interviewer doesn't hear it.

"Listen, listen, listen, listen," Donahue said. "Eighty percent of the interview should be spent listening."

Reporter Kristi Albertson may be reached at 758-4438 or by e-mail at kalbertson@dailyinterlake.com.