PrincePerelson & Associates

How Does the Recruitment Process Impact Employee Retention?

Employers often find themselves struggling to determine the best way to recruit quality, dependable employees. Some business professionals argue that the streamlined processes of a recruitment agency or service is the most thorough and effective way to find the perfect match. Others, however, value the camaraderie and personal connection that comes through in-house recruitment. Which method is less likely to end in an untimely turnover? Here’s what the business professionals are saying:
Timothy Connon

Timothy Connon

Founder, CEO & Life Insurance Agent of .

Fulfilling Promises Made by the Agency

If a recruiter markets the organization and the benefits delivered to the potential employees, this should be the experience the employee receives.

If the organization is marketed falsely to the employees, they will eventually quit because no extra benefits are holding them to the organization.

If employees are misrepresented with opportunity, this can lead to feelings of doubt, anger, and regret, [and] the eventual turnover of that employee.

To retain employees, the recruiter should represent the opportunity to the candidate in the most honest way possible. It means giving them real expectations and delivering on at least 90% of them so that the employee is happy and feels secure with the organization. Sell it right the first time, and the business will stick.

Internal Hiring Promotes Team Alignment and Integration

Internal recruitment often results in better employee retention rates because it ensures that new hires align well with the company’s culture and values right from the start. This strategy helps workers feel more satisfied and like they belong, which is crucial for long-term loyalty.

On the other hand, recruiting firms have more access to talent and can expedite the hiring process, it’s possible that they don’t always match applicants with the corporate culture as well.

To put it briefly, internal hiring often promotes more team alignment and integration, which is good for employee retention in the fast-paced IT industry.

Jan Chapman

Jan Chapman

Co-founder and Managing Director of .
Joe Coletta

Joe Coletta

Founder & CEO of .

Onboarding, Compensation, Transparency, and Hiring

1. Failing to onboard properly

It’s high time employers and recruiters realize the importance of an employee’s first 90 days at a firm. I know of multiple instances of employers ghosting their new hires on their first day. At my firm, we work with clients to streamline the new hire experience in order to maximize long-term retention. These initial months are crucial in terms of training, building trust, and maximizing job satisfaction.

2. Not offering competitive compensation

What many employers don’t realize is that many new hires accept a job offer while actively interviewing at other companies with slower recruiting processes. Your new employee might be waiting for an answer from a company offering better compensation but has accepted your offer in case they get rejected by the other employer. It’s therefore essential to compensate fairly and not overburden your staff with duties disproportionate to their pay scale.

3. Avoiding transparency during interviews

It’s common practice to understate the job duties when interviewing candidates, and it hurts retention rates when new employees realize they’ve been misinformed. I strongly recommend interviewers learn about the job role in advance, enough to provide a realistic overview of the daily responsibilities associated with the position.

4. Hiring the wrong people

In the end, the more effort you make in matchmaking candidates and open positions, the higher the chances of their long-term retention. Besides hard skills, try gauging soft skills necessary for the role. Evaluate the candidate for culture fit and look for retention red flags such as a history of unexplained job hopping or resume gaps.

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