Tuesday Tuneup- #36
Attracting the Best Talent
This week's edition of the Tuesday Tuneup is sponsored by:
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Step by- Step guidance to build the contracting business of your dreams.
Weekly meetings to support initiatives, create accountability and adjust priorities.
Strategic planning and bench marking.
Formal process creation for training, sales and communication.
Happy Tuesday everyone!
This past week I was fortunate enough to have dinner with an old friend of mine who currently runs a large construction company. We’re talking 3,000 employees across multiple states. In our conversation he said something that really stood out “We’ve taken really great care of our people, for a really long time and as a result, they’ve stuck around when things got rough. We wouldn’t be where we are today without them”.
I couldn’t agree more and people….. at the end of the day, are what will make or break your success in business.
Having a bad Glassdoor review or constantly burning your employees was never a good business practice, but especially not in modern times when information is so freely flowing and good people are in such demand. An exceptional employer reputation can make all the difference, giving your company a “first choice” status among job seekers.
According to LinkedIn's Employer Branding report, 75% of job seekers consider an employer's brand before even applying for a position.
This statistic highlights just how powerful your reputation is when trying to attract top performers.
When prospective employees perceive your company as a respected, supportive, and high-quality place to work, they’re more likely to be interested, apply, and potentially choose your company over others—even if you don’t have the highest pay. Here are a few tangible ways an outstanding reputation gives you a hiring edge:
Lower Cost per Hire: Studies show that companies with a positive reputation as an employer see a 50% reduction in the cost per hire. Candidates are more inclined to seek you out, saving your team time, effort, and resources on outreach.
Higher Quality Applicants: Companies with a strong employer brand receive twice as many applications as companies with an average reputation. You’re more likely to attract high-caliber candidates whose values align with yours, increasing the likelihood of a successful hire.
Shorter Hiring Cycles: A positive reputation helps streamline the hiring process. When candidates already have a good impression of your company, they’re quicker to commit, cutting down on lengthy hiring cycles that slow down your operations.
In essence, by investing in your employer reputation, you’re investing in hiring efficiency and the caliber of your team.
Retaining Great Employees: Why Reputation Influences Retention
Retention is as crucial as hiring, if not more so. Retaining employees saves on rehiring costs, builds a more knowledgeable team, and strengthens company culture. Studies from the Center for American Progress reveal that the average cost of replacing an employee can be as high as 20% of their annual salary for mid-range positions, with costs rising to 213% for senior roles. The longer you can keep your high performers, the better your ROI.
A stellar reputation as an employer often leads to increased loyalty among employees. Employees want to work for a company they can be proud of, and if they feel valued and recognized, they’re more likely to stay. This is particularly important in industries like contracting, where work can be demanding, but a supportive, positive work environment can make all the difference.
Some key benefits of an exceptional employer reputation on employee retention include:
Increased Employee Engagement: Companies with high employee engagement report a 41% reduction in absenteeism and a 17% increase in productivity, according to Gallup. When employees feel they’re part of a reputable organization that values them, they’re more engaged and motivated to contribute to its success.
Higher Morale and Job Satisfaction: Employees working for respected companies report higher job satisfaction and morale. In fact, Glassdoor reports that over 50% of employees say they’d stay longer with a company if they felt the company was a great employer. Satisfied employees are not only more likely to stay, but they also tend to go above and beyond in their roles.
Employee Ambassadors: When your reputation as an employer is strong, your employees become ambassadors for your company. Positive word-of-mouth from current employees is one of the most powerful forms of marketing. Satisfied employees are more likely to refer their contacts to open positions, and they contribute to a positive image that can attract more like-minded candidates.
In short, a solid employer reputation helps you hold on to your top talent and even turn them into advocates for your business.
The Monetary Value of a Strong Employer Reputation
Beyond attracting and retaining talent, a positive employer reputation has a measurable impact on your profitability. A Harvard Business Review study estimated that companies with strong reputations for being great employers see around a 16% rise in profit margins and a 25% boost in overall revenue.
Let’s break down some specific ways a strong reputation translates into dollars and cents:
Lower Turnover Costs: As we mentioned earlier, the cost of replacing an employee can range from 20% to 213% of their annual salary, depending on their role. By keeping employees longer, you reduce the frequency of these costs and avoid the disruptions that turnover causes to productivity and morale. For a small-to-medium-sized contracting business, saving on turnover costs can amount to tens of thousands of dollars per year.
Higher Productivity and Output: Companies with strong reputations as employers experience higher levels of employee productivity. This leads to increased revenue and greater profitability. According to a study from the Boston Consulting Group, companies with engaged employees experience a 23% increase in profitability. Happy employees deliver better results, which ultimately impacts your bottom line.
Reduced Hiring Costs: Filling roles at companies with strong reputations takes 1–2 weeks less than average, according to LinkedIn. Not only does this mean you’re saving money on hiring expenses, but you’re also reducing lost revenue due to open positions. If each week of a vacant sales role costs the company, say, $5,000 in missed revenue opportunities, faster hiring adds up to significant savings over time.
In practical terms, maintaining a good employer reputation is a revenue driver as much as it is a cost saver. Every day that your team feels engaged, supported, and proud of their workplace is a day you’re actively improving your company’s financial health.
Steps to Build and Maintain a Positive Employer Reputation
Building a strong reputation doesn’t happen overnight, but consistent efforts can build a lasting impression. Here’s a step-by-step approach for maintaining an exceptional reputation as an employer:
Provide Competitive Benefits and a Positive Work Environment: Ensure your compensation, benefits, and work conditions are competitive within the industry. Job seekers consistently rank these factors among the most important when considering a new role.
Communicate Openly and Regularly: Keep the lines of communication open. Regularly update your team on company news, recognize their achievements, and involve them in the decision-making process. Transparency fosters trust and loyalty, both of which are essential for a strong reputation.
Prioritize Work-Life Balance: A healthy work-life balance is essential to keep employees motivated and prevent burnout. Encourage breaks, limit overtime, and be flexible when possible.
Solicit and Act on Feedback: Encourage employees to share their thoughts through regular feedback channels. Implementing suggestions when possible shows your team that you’re committed to making the company a better place to work.
Celebrate Wins and Recognize Contributions: Recognize team members for their hard work. Whether through formal awards or simple shout-outs, celebrating contributions shows your team they’re valued.
Finally…. Invest in your people!
When you help your people develop their skills, their careers and help find their hidden talents, they stick with you longer. Every exceptional company shares the ability to develop the superstars of tomorrow. Some of the most proud moments in my career involve the many Managers, Directors and Business Owners I’ve had the opportunity to mentor and work with in their early years. When you care for people, and work to provide them opportunity, they never forget it.
Until next week…… Happy Selling!