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The 3 Rs: Recruiting, Retention, and ROI

December 20, 2022

Best Practices for Retention 

Causes for Employee Turnover

In the U.S., the utility industry has some of the highest turnover. Across all industries, the leading causes of turnover in the US are as follows:

  • Career development (20%)
  • Work-life balance (12%)
  • Manager behavior (12%)
  • Job characteristics (10%)
  • Well-being (10%)
  • Relocation (9%)
  • Compensation and benefits (9%)
  • Retirement (6%)
  • Involuntary (6%)
  • Work environment (6%)

Inexpensive ways to improve employee engagement:

Teams with low engagement levels see employee turnover rates 18%-43% higher than teams with high engagement levels.

  • Supply the right tools
  • Give individual attention
  • Provide training and coaching
  • Listen to employees
  • Get social
  • Serve others
  • Recognize proudly and loudly

Over half of voluntarily exiting employees say a manager or organization can do something to prevent their leaving.

Metrics to Evaluate ROI

  • Turnover rates by demographics
  • Number of openings; quality candidates = decreased turnover
  • Early terminations within 90 days = poor candidate quality
  • Of 10 exiting employees, four left in their first year
  • Client satisfaction
  • Savings = reinvestment (less cost to recruit)
  • The average cost to replace an individual can be 2x the employee’s annual salary

Best Practices for Recruitment

High-Cost Investment 

  • Invest in digital services (LinkedIn, Indeed).
  • Automate with applicant tracking software.
  • Don’t settle on a candidate. Instead, wait for great.

Moderate-Cost Investment

  • Create recruitment videos
  • Write a blog; build a bench
  • Approach passive candidates

Low-Cost Investment

  • Recruit at colleges and universities
  • Host sourcing contests and promotions
  • Utilize niche job boards (SimplyHired)

No Investment

  • Connect with alumni
  • Write compelling job descriptions
  • Prioritize diversity, equity, and inclusion

Metrics to Evaluate ROI

  • Hires per month
  • Time to fill
  • Cost to hire
  • Quality of onboarding experience
  • A good onboarding program can improve retention by 82%

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Author
ACRT Services Staff

ACRT Services offers expert independent consulting solutions to utilities and associated organizations throughout the United States, including vegetation management consulting, ecological consulting, arborist training, customized safety courses, technology solutions, utility metering services, and more to empower the best people in the industry.

March 2024
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