A new hire is an investment. How do you make the most out of your investment to generate a healthy return for your profit margins? That’s what I’m going to tackle on the Htet Tayza blog by explaining how to turn a new hire into a valuable member of your team.
The benefits and drawbacks of new employees
Every entrepreneur dreams of hiring new staff. Taking on more members of your team implies that your company is expanding, and that you need to take on new people to handle the increasing workload.
Yet new hires are a double-edged sword. They may have the experience you need, but they aren’t familiar with your venture. They don’t know how you do things and this could turn them into a drain on your resources and give you no choice but to let them go.
The cost of staff turnover
Staff turnover is the anathema of profit margins. Figures from Oxford, UK-based income protection providers Uncum show that the average cost of replacing an employee in the country is £30,614. Employee turnover cost is exorbitant around the globe.
An article on Inc.com states that when a company loses an employee it drives down productivity, overworks remaining staff, deprives the company of the outgoing employee’s knowledge base and imposes interview and training costs for their replacement. An infographic from Fast Company Magazine shows that 81% of people who leave a job in the first six months work in entry or intermediate level jobs, making employee turnover a particular issue for the hospitality industry, which relies on low level workers.
Four tips to bring the most out of your new employees
However entrepreneurs can persuade their employees to stay. They just have to find ways to bring out the best in their staff before they decide that the job isn’t for them. Here are four ways you can do so:
- Implement training: How do you familiarise a new member of staff with how you do things? Show them how you do things. If you implement an extensive training programme you can provide an incoming member of staff with the knowledge they need to adapt to your way of working.
- Encourage questions: A new employee will have questions. Let them know that they won’t be penalised if they ask them. If your new member of staff doesn’t know what they’re doing, how can they be good at their job?
- Bond the team: People like happy working environments. Make the new member of staff feel like a member of the team and you’ll cultivate bonds that encourage team work in your new employee. Happy employees are productive employees.
- Monitor their progress: A new hire may feel that they don’t have the seniority to speak up if there’s a problem. However you need them to speak up if you’re going to solve it. Schedule one-on-one meetings so you can track their progress and prevent any problems that would turn the hire into a drain on your resources.
The onus is on you
A new hire is only what you make of them. If you put measures in place to turn them into an asset, they’ll become an asset. If you neglect them and leave them to their own devices, your neglect will turn them into a toxic investment. Strive at every moment to turn a new hire into a valued member of your team.