It’s no secret that candidates and employees are beginning to adjust to the impacts of COVID-19. As they accept the “new normal”, it is likely that theyll loosen the reins and consider other job opportunities. As the job market continues to improve, they won’t settle for a job that doesn’t excite them or work for employers that don’t share their valuesPeople will be more likely to abandon frustrating job application processes, leave employers that provide a poor experience, and ditch poor remote work cultures 

We all know that losing talent, whether that be a job candidate or current employee, is bad news for any organization. But what exactly are the ramifications of lost talent? There might be a greater impact than you realize.   

In many instances, lost talent can impact your company’s reputation, cause an increase in spending, and hinder your workplace culture. Why is this the case? Read on to find out. 

  

Poor Experiences Lead to Poor Reputations

What do abandoned job applications and employees who quit have in common? Poor experiences. If an application process is time consuming, confusing, or outdated, then candidates will move on to employers who provide a better candidate experience. On the other end of the spectrum, if an employee at an organization is feeling unappreciated, frustrated by the digital tools they are made to use, or annoyed with their company in general, then they’ll look for a new jobs with a better employee experience. 

Once this person has abandoned your apply flow or company, there’s often nothing holding them back from sharing their experiences with others. In fact, they might be more motivated to share their experiences if they are especially frustrated. With social media so readily available (Twitter, LinkedIn, Instagram, Reddit, Facebook, and even TikTok), it has never been easier to communicate poor experiences.   

In many cases, a major cost to lost talent is the development of a poor reputation. A poor reputation can greatly hinder your organization’s chances to hire in the future, while simultaneously decreasing your employee retention. According to CNBC, one in three people have rejected a job offer because of a company’s poor online reviews.  

  

More Money is Spent to Reach Targets

It’s obvious that there are financial ramifications when employers lose talent – no matter where or how they lose it 

A poor candidate experience means that the money that you’ve invested into your career site, ATS, and recruitment marketing activities is going to waste. What’s more, many organizations are often compelled to increase spending if they are struggling to acquire talentAccording to Glassdoor, the average U.S. employer spends about $4000 and 24 days in the process of hiring new workers. Job sourcing, recruitment technology, and referrals are just some of the costs associated with this. 

On the other side of the spectrum, we can see that losing existing employees also has a financial cost. To replace an employee, there are hiring costs which include advertising, interviewing, and screening as well as onboarding costs which include training and management’s time. According to the Society of Human Resources Management (SHRM), the average financial cost associated with replacing a salaried employee is six to nine months of their salary. For an employee making $80,000 per year, that totals approximately $40,000-$60,000 in recruiting and training expenses. 

 Many would argue that the financial cost is the biggest drawback associated with losing talent.

 

Find out how much you could save on job ads by increasing your candidate conversion!

  

High Turnover Hinders your Company’s Culture

Losing leaders and high contributors within your organization can be demoralizing and discouragingMaybe that person created a sense of camaraderie at your company, or maybe they were a huge contributor on your team. Either way, losing a colleague can have an astounding impact on workplace culture.  

What’s more, many workers find that – at least in the short-term – they are forced to accept extra work to compensate for the lost employee. This can certainly cause frustration and further damage the experience for remaining employees.  

Unfortunately, if these situations aren’t addressed immediately, then the poor employee experience can quickly snowball prompting others to leave. This only exacerbates the damaged company culture making talent acquisition efforts even more challenging.   

  

Final Thoughts on Lost Talent

Having frustrated candidates and discouraged employees is every organizations’ worst nightmare. That’s why investing in your candidate and employee experience is critical for the long-term success of any company. You’ll have better quality talent to hire, and you’ll have higher employee retention.  

Concerned that significant spending is required to achieve this? Don’t worry  you don’t have to break the bank to improve your candidate and employee experience. With an Employee Experience Platform, such as InFlight, you don’t have to purchase new talent acquisition and HCM systems  you can simply enhance your current investments.  

An Employee Experience Platform is the more cost-effective solution for making your existing systems user friendly, branded, and accessible across any device. This will certainly help your organization delight and retain talent over the long-term 

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