Llc Hiring Process

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In 2010 at MDT Personnel, LLC we had training class on hiring the right person. In this class we learned that turnover was very high and with the high turn over there came a huge cost that was involved. The study that the CEO of MDT conducted estimated that the turnover in that year alone cost the company over a million dollars. When the speaker asked us what we thought it was we all said less than 100,000 dollars so imagine my surprise when we heard this figure. We all looked at each other and shock was on all faces in the room. The speaker then went on to explain all of the direct and indirect cost of the hiring process and how this million dollars was calculated. The direct cost of course in the hiring process is the recruiting, drug…show more content…
The administration cost of a separation includes the cost of the severance cost, exit interviews, unemployment hearings and other cost associated with turnover. The training and retraining of the employees is a huge cost to endure in such short periods of time. The indirect cost here include the excess of the overtime pay to current employees or monetary compensation to be paid to an outside source to use a temp service to take care of the work until a permanent employee is recruited and hired. This is paid in order to compensate to current employees in overtime or a temporary service to fill that void until the right person is found and located. The loss of production and or customers due to failure to deliver the employees or products you sell is also an indirect cost that affects the business in a negative way. One indirect cost many of us do not think of is the effect on the companies morale and that can take a toll on others employees especially the ones who are taking the brunt of the work that the separated employee was performing. Turnover and the indirect cost can even include more frequent accidents and higher injuries due to the inexperience of newcomers. If you take all of the cost, the indirect and direct cost into consideration, you can start to see the full scope and calculate the cost of the…show more content…
The company should always give a realistic job description accompanied with a self-assessment survey. Many ideas should be job shadowing, ride along with a current employee, asking more question and giving more answers in the interview process, let the applicants meet employees and ask questions they might now feel like they can ask you, in other words let them feel the job out first and in this process you can get a better read if the employee would be a good fit for the company. The pre-employment testing is the most important thing that HR can do to make sure that the employee will be the right fit. HR needs to review the job history, experience do the thorough reference and background checks and in the interview give the behavioral interview with a personality assessment this will give a better feel for the employees work ethic. Provide an open line of communication between employees and management or HR. Also three rules that we put in place to follow that has helped us tremendously in the hiring process is: 1. Never hire someone who is currently not working, or if laid off that has not worked in past three months. 2. Never hire someone who had had multiple jobs in past 10 years. 3. Never hire anyone in Management who does not have a degree. In implementing this process we do not act on the theory we like this person lets hire them.

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