January 9, 2018
3 Reasons Executive Retention is Important
Once your company has hired an executive, retaining that executive is important. Even after that executive has been with your company a couple of years, continued retention should be a priority. Of course, things can happen and take a turn for the worst, so changes have to be made. Maybe the best executive was not hired. In cases where you are not 100% sure you are attracting or landing the best candidates for key open positions, professional recruiters, like those at human capital investment nashville, are able to help.
Here are three reasons why executive retention is important.
Your opinion of disruption may depend on your industry. While those in the technology field are constantly on a mission to disrupt the status quo by inventing new ways to do old things, disrupting the leadership of your company is not always a good idea. Continuity is helpful because the ones that are most affected by changes at the top are the employees on the lower levels. New company leadership often means changes. Changes, however, are slow to implement. During the beginning to the end of the change period, confusion, frustration and absences may occur.
The process it takes to hire a new executive is similar to the process it takes to earn new customers. Vetting, research and marketing are all involved, and their costs all add up quickly. The more often you replace an executive, the more often your company will have to fund the search and hiring process. Retaining an executive gives them an opportunity to settle into their post and exercise their skills to help your company profit. The cost savings is also an incentive to ensure that the best candidate is offered the position in the first place.
Avoid the Brain Drain
Many companies give new hires the opportunity to show they are a good fit during the first year. After the first year, if things are not flowing optimally, it makes sense to part ways. One year, however, is still one year of company knowledge gained. As soon as a hire leaves, so does the insight they gained into your business.
Recruiting and hiring executives is not the simplest task, and one reason why a search can take months. Once you have hired an executive, continuity, cost savings and the brain drain are reasons to focus on retention.