As Canadian businesses begin to feel the effects of an economic downturn, one thing is in the back of everyone’s mind: saving money and cutting costs. Gone is the financial boom we experienced in the early years of the millennium. 2009 is the year to reflect on current business practises in an effort to shrink costs and reduce overhead. But, where is the best place to start?
The average cost to hire a new employee in North America is $4,588.00! This is a staggering number which includes everything from the cost associated with the exiting employee to the costs of hiring and training a new worker and the loss of productivity during the transitional period. In the past, companies have accepted high employee turnover as an uncontrollable cost of doing business. This does not have to be the case. While occasionally people leave a job with little justification, the majority of the time, employee turnover is foreseeable and preventable. The number one secret to long-term employee retention and productivity is to hire qualified, “healthy” candidates.
In the context of employee screening, “healthy” does not mean that a candidate needs to be in peak physical condition, or even that they eat tofu and bean sprouts for lunch. If that were the case, the majority of Canadian businesses would have a non-functional workforce! A healthy worker is someone who is: physically, emotionally and mentally capable of excelling in the position that he or she is hired for.
Take for example, the case of a receptionist who is hired with a new company, let’s call her Susie. Susie is extremely pleasant, has years of experience and is very knowledgeable in her field. In essence, she seems like an ideal candidate. Unfortunately, three months into the job, Susie’s doctor discovers that she has carpal tunnel syndrome. Physically, Susie would be unable to effectively perform the functions needed to excel at her job. The discovery quickly leads to a worker’s compensation claim, followed by time off of work necessary for treatment and recovery. A temporary receptionist is hired to fill in until the doctor gives Susie clearance to return to work.
When Susie was hired, although she seemed ideal, she was not a “healthy” employee. If her company would have pre-screened her for carpal tunnel syndrome, they would have discovered that she was not a suitable candidate for a receptionist position, and would have saved several thousand dollars with the associated costs of Susie’s recovery. The average cost of a worker’s compensation lost time claim alone is $5,574.00, not including the cost of hiring a replacement worker.
Susie’s case is just one of many examples of the cost of “unhealthy” employees in the workplace. Another common example is candidates who struggle with drug and alcohol abuse and/or addiction. Employee drug abuse in the workplace causes five times more workers compensation claims, 36 times higher employee theft, 300 - 400% more health care benefit utilization and a greater chance of workplace violence, with 2/3 of people arrested in workplace violence situations testing positive for illegal drugs.
It is “unhealthy” workers who are the leading cause of workers compensations claims, low productivity, and eventually employee turnover. Companies have the resources available to pre-screen their job candidates, ensuring that they hire “healthy” workers. It is one of the easiest and most effective ways to cut costs and at the same time improve the overall state of a company. Employee pre-screening saves money, cuts costs, increases productivity and improves employee morale, with limited time and effort.
