Unit 3: Successful Employee Recruiting and Retention

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Successful Employee Recruiting and Retention There are several factors that are influencing companies to change their recruiting and retention methods. One of the biggest impacts to the workforce is the retiring workforce. Currently, a large population of baby boomers is retiring, leaving a large gap in the workforce that must be filled. The dilemma here is that these employees take with them many years of knowledge and experience, leaving firms with a young (though well educated) and inexperienced workforce. The result is a labor shortage. “A labor shortage is defined as an economic condition in which there is insufficient qualified employees to fill the marketplace demands for employment at any price.” (Fogg, 2008). With labor shortages comes a shortage of qualified employees to fill critical positions. “To mitigate the loss of organizational memory and its concomitant impact on performance, leaders must devise strategies to transfer knowledge from veterans to neophyte employees, retain older workers, and fiercely compete to fill vacancies with an ever-shrinking number of candidates.” (Myers & Dreachslin, 2007). Not only are employers faced with filling critical positions, but the added expense of hiring and training a new workforce. One of the largest expenses for a firm is the marketing, hiring, and training of new employees. For those companies with high turnover rates, the cost is even more. With so many candidates vying for fewer and fewer positions, most businesses have no shortage of potential employees. The key is recruiting the right candidates and retaining them. Productive recruitment and retention has added benefits other than reducing the hiring and turnover costs. Companies will benefit from the innovative ideas a diverse and qualified work force bring to the table. Improving processes and implementing new ideas can expand the business, increase

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