Berks & Beyond Blog

While retention is a hot buzzword these days, you can’t talk about retention without talking about turnover. Do you realize how much it’s costing you? Turnover costs most companies thousands if not millions of dollars a year – but most employers don’t realize it!

Companies routinely record and report costs such as wages and benefits, workman’s compensation insurance, utilities, materials and space, yet most companies have no system in place to track and report the cost of employee turnover.

How to Estimate Turnover Costs

• SHRM, the Society for Human Resource Management, once estimated that it costs $3,500.00 to replace one $8.00 per hour employee when all costs — recruiting, interviewing, hiring, training, reduced productivity, etc., were considered. But SHRM’s estimate was the lowest of 17 nationally respected companies who calculate this cost!

• Other sources estimate that turnover costs you 30-50% of the annual salary of entry-level employees, 150% of middle level employees, and up to 400% for specialized, high level employees.

• Do a quick calculation: Think of a job in your organization that has experienced high turnover, maybe supervisors. Estimate their annual average pay and the number of supervisors you lose annually. If their average annual pay is $40,000, multiply this by .125% (125% of their annual pay). The result? It costs $50,000 to replace just one supervisor. If you lose ten supervisors a year, you’re spending $500,000 in replacement costs just for supervisors. And that’s the bottom line cost. The top line cost? If the company’s profit margin is 10%, then it costs $5,000,000 in revenues to replace these ten supervisors.

Do These Numbers Seem Unbelievable?

Actual turnover costs are usually much higher than we think they are.

If you want to find out exactly how much turnover is costing your organization, find an online employee turnover calculator. Just remember that only tangible costs can be calculated on these sites. Intangible costs are just as real and sometimes much greater than quantifiable costs, but they are difficult if not impossible to measure.

Why Don’t More Companies See This as a Costly Problem?

Many companies don’t realize the true cost of turnover, which costs companies in both expertise and dollars, because they have never examined it. Here are five possible reasons:

1. No process is in place to tabulate the costs of turnover.

2. If they are measured, those costs are not reported to top management.

3. Employers think it’s an inescapable cost of doing business — but it’s not!

4. Everyone thinks it’s an HR problem, but it’s really a strategic issue requiring top management and HR’s combined attention and actions.

5. Costs are underestimated, so they don’t cause concern.

How Can You Measure Turnover Costs in Your Organization?

A comprehensive program measures the following costs:

• · Separation costs
• · Replacement costs
• · Training costs
• · Vacancy costs

Separation costs include:

• costs incurred for exit interviews
• administrative functions related to termination
• separation/severance pay
• any increase in unemployment compensation.

Replacement costs include the cost of:

• attracting applicants
• entrance interviews
• testing
• preemployment administrative expenses
• acquisition and dissemination of information.

Training costs include both formal and informal training costs. Vacancy costs include the net cost incurred due to increased overtime or temporary employees needed to complete the tasks of the vacant position.

How can you reduce turnover?

When turnover costs are unacceptably high, do an assessment. Find out who is leaving and why. Exit interviews can help you gain information. Then develop a retention program based on your findings.

You can always contact Berks & Beyond to find out how we can help lessen your turnover costs!

From your handshake to your knowledge of the potential employer, everything you do and say is scrutinized by an interviewer – from the instant he lays eyes on you.

Are you doing everything you can to create a positive first impression?

Fair or unfair, an interviewer sizes up you and your abilities within the first few minutes of meeting you.  In fact, the more experienced he is, the more likely he is to draw conclusions about you based on limited information.  So whether you call them hunches, first impressions or simple intuition, an interviewer’s snap decisions are critical to the success of your job search.  To land the job you want, use these tips to make a great first impression:

Do your homework. Spend a good amount of time before the interview date researching the employer.  Their company website is a great place to start.  Don’t just skim through the information – really read it.  Find out everything you can about the organization’s history, mission, lines of business and key personnel.

Next, Google the company and find out what others have written or said about them.  Check newspapers, business magazines or other reputable sources to further educate yourself.  When you finally head into your interview, you’ll have an additional level of knowledge and confidence that will shine through – and keep from looking like a “deer in the headlights” if the interviewer asks you to tell him what you know about the company.

Remember that actions speak louder than words. The nonverbal cues you send from the moment you walk into an interview are scrutinized.  Pay careful attention to your posture, handshake and eye contact to create a positive first impression.

Come prepared. Put yourself in the interviewer’s shoes.  What would you think of a candidate who had to ask for a pen, or who rifled through a cluttered briefcase to dig out a wrinkled résumé?  Have a crisp copy of your résumé and references, a pen and notepad for notes, and your portfolio (if applicable) organized and ready to go.  Doing so will allow you to hit the ground running and immediately focus on the interviewer.

Avoid common interview mistakes. To succeed in your job search, you need to back up your skills and experience with a first impression that leaves no doubt that you’re the right person for the job.  Arrogance and sloppy attire are mistakes you simply cannot afford to make.  Be confident, but make sure you’re not cocky.  Overconfidence could be misconstrued as indifference – suggesting you could take or leave a job offer.  Similarly, you should dress for interview success.  Failure to do so could convey that you don’t really care about the job opportunity enough to dress appropriately.

Ask only relevant questions. Show the interviewer that you’ve done your homework by preparing a few questions pertinent to the job or the company (use the research you’ve conducted to help you generate ideas).  If they’re answered during the course of the interview, don’t feel pressured to make up new ones on the spot.  Throw-away questions won’t impress an interviewer – they’ll only end the conversation on a down note.

Thank the interviewer. Expressing thanks is one of those “pivotal moments” an interviewer may hang his hat on.  So without fail, thank the interviewer for his time both at the beginning and the end of your conversation.  Tell him that you’re excited about the opportunity.  Positive emotion and good manners go a long way toward creating a lasting favorable impression.

Ask for the job. Good salespeople ask for the sale; good job seekers should ask for the job.  Beyond thanking the interviewer, say, “I would really love to work here.”  This sounds simple, but so many candidates fail to do it!

Land Your Dream Job with Berks & Beyond

As a leading staffing service in central and southern Pennsylvania, we match job seekers like you with rewarding employment opportunities every day.  Contact Berks & Beyond today to learn about temporary and direct hire employment opportunities for Pennsylvania job seekers.

Reading, PA knew it was poor.  But now it knows just how poor.

While the problem of poverty has been a major problem in the city for years, residents, business owners and government officials reeled after a September 26, 2001 article in the New York Times named Reading as the poorest city of 65,000 or more in America.

According to the November 2, 2011 Bctv.org article “Frustration reigns at poverty forum in Reading” by staff writer Madelyn Pennino, hundreds of people gathered this past Tuesday for a town meeting to address the issue of poverty.  During the forum, dubbed “Reading:  The New Face of Poverty,” citizens and panelists provided a number of thoughts on how to eradicate the problem, including:

• Taking responsibility and cooperating to make a difference.
• Cleaning up the city.
• Making it easier for businesses (large and small) to come in and thrive.
• Improving educational and training opportunities.
• Attacking crime.
• Embracing cultural diversity.

While the ideas seem sensible, frustrated city residents said that the city and the public are not nearly on the same page in how to make changes that will bring the city’s poverty level down.  Participants did agree, however, that ignoring the problem hasn’t worked and poverty is everyone’s issue.

During the forum, Reading Mayor Tom McMahon acknowledged that many good-paying jobs have left the area, and that our state does not have the best incentives for attracting new businesses.  When asked how it could be made easier for someone to open a business in Reading, McMahon said there is a one-stop shop every Thursday morning in City Hall where city officials offer that kind of help.

Reading’s poverty issue is both deep and complex, and it will not be easily resolved.  As our community sorts through the economic challenges it faces, Berks & Beyond offers advantages to businesses and job seekers alike.  During difficult times, our staffing services help clients control overhead, avoid costly hiring mistakes and manage an unpredictable economy.  For those who are out of work, Berks & Beyond provides viable employment opportunities (many of which are direct) that provide much-needed income.

The first holiday domino has tipped.

Halloween is over, setting in motion a chain reaction of events designed to fuel consumer spending throughout the rest of the year.  Across Pennsylvania, retailers have set up their holiday displays, hoping to entice shoppers into beginning their seasonal spending just a little bit earlier.

Despite an anemic economy, the National Retail Federation still predicts a holiday spending increase of 2.8% (slightly higher than the 10-year average), which means that consumers will indeed be opening their wallets this year.  The bottom line?  While it may be a little too early to start decking the halls, it’s definitely time to ramp-up your seasonal hiring.

Use this list of tips to find the best seasonal employees and get the most from them during your busy season:

Find the Best

Bring back your superstars. Start by contacting your best holiday workers from last year.  If you used a staffing service last season, you can even request specific temporary employees again.  Because they’ve already proven themselves on the job, and understand your company and its workflow processes, these workers are the smartest choice.

Consider a variety of sources. If you will be recruiting on your own, cast a wide net to develop your applicant pool.  Sources of potential seasonal employees include job fairs, classified ads, online job sites, social media (Facebook, Twitter, etc.) and referrals from current employees.

Partner with a staffing service. Because they maintain databases of highly skilled candidates who are ready to work, a staffing service can quickly supply the temporary help you need to closely match your fluctuating demand.  As an added benefit, a staffing firm handles all the recruiting, interviewing and background checks you require, so you can stay focused on your most important priorities.  To get the best results, invite the staffing representative to your work location.  Give him a tour of your site, so he can develop a first-hand picture of your exact staff requirements.

Offer competitive pay. Make sure you attract top performers by paying at or above competitors’ rates.  During your busy season, you need high quality supplemental staff who can learn quickly, perform consistently and ultimately increase productivity – so it’s worth it to pay a little more for the right people.

Manage for Success

Start off on the right foot. The seasonal rush can be hard and stressful on everyone – especially workers who are new to your company.  Get everyone on your staff (direct, seasonal and/or temporary employees) together for a pre-rush kick-off to let them know how much they are appreciated.  Use this opportunity to orient and introduce new employees, wrapping up with a formal tour and review of company policies.

Provide adequate training. Although it’s time-consuming, be sure to give seasonal employees the training they need to succeed.  They may only be working for you for a short time, but their performance is no less important to your company’s success.  After an initial orientation, pair each supplemental worker with a permanent employee for practical training and support during the learning curve.  Ultimately, well-trained workers will be more independent, productive and less likely to make costly mistakes.

Closely monitor initial performance. During your busy season, you shouldn’t tolerate – and can’t afford – mediocre performance.  If a seasonal worker isn’t living up to your standards, replace him.  Staffing services provide a distinct advantage in this respect, because most offer replacement guarantees on their temporary workers.  If the assigned employee does not perform as expected within an initial time period, the staffing service will provide a replacement, free of charge.

Consider completion bonuses. Dealing with high turnover during a critical time can disrupt workflow, waste valuable time and potentially cost you customers.  Encourage seasonal workers to stay for the duration of your busy season by offering a cash incentive or gift card for completion.

Plan for Seasonal Staffing Success – This Year and Next

The holiday season is already ramping up, and Berks & Beyond is ready to answer your call.  Throughout Central and Southern Pennsylvania, we deliver the clerical/administrative, light industrial, technical, professional and skilled trades staff our clients need to thrive during their busiest time of year.

Successful seasonal staffing requires careful planning, so learn what you can from this year.  As you progress through the next few months, take notes on what works and what doesn’t.  Keep records of what types and how much supplemental staff you require, so you can refer to this information next year.  Mark your 2012 calendar with dates to begin recruiting early and/or meet with Berks & Beyond to plan your seasonal staffing needs.

Are you familiar with Senate Bill 128?  If you regularly check job applicants’ credit as part of your screening process, you should be.  Senate Bill 128, if passed in it’s current form, would prevent employers from using consumer reports unless the information is either substantially job related (and the reason for the use of the information is disclosed in writing), or required by law.

The National Conference of State Legislature’s (NCSL) website indicates that changes in credit screening legislation are occurring from coast to coast.  Seven states now limit employers’ use of credit information in employment: California, Connecticut, Hawaii, Illinois, Maryland, Oregon and Washington.  To date, 58 bills in 28 states and the District of Columbia were introduced or pending in the 2011 legislative session.

Connecticut’s new credit screening law went into effect just a few days ago, on October 1, 2011.  Their law bars mandatory consent to credit checks by employees and applicants for all but a few types of employers.  Since then, California has also banned most employers from running credit checks on job applicants, and at least five more states are also considering similar bans.

Is our state next?

As an employer in Pennsylvania, you still have the right to check a job candidate’s credit.  Before you do so, however, you should consider:

• how relevant the information you’re collecting is to the available position;
• the cost involved versus the benefit to be gained;
• whether or not your internal staff is trained in how to interpret the complex information contained in today’s credit reports;
• whether or not there may be potential adverse effects to checking an applicant’s credit.

While the use of credit checks as an employment screening tool has grown over the past several years (with some 60 percent of U.S. employers using credit reports for some or all of their background checks), this practice is now becoming illegal for many employers.  In the future, it will be interesting to see if and how this ban will help people with financial problems find employment.

What is your take on the new credit screening laws?  Will it affect the way you screen and hire candidates?  We at Berks & Beyond would like to know.  Please leave your comments below.

Berks & Beyond employees choose temporary work for a variety of reasons.  Some like the extra cash and freedom temporary work provides; others want to gain experience; still others seek a full-time, direct position.

No matter what your reasons are for working as a Berks & Beyond temporary, you can use these six tips to succeed while on assignment:

Prepare yourself. Buy a memo pad to serve as your temporary employment reference book.  Once you accept an assignment, be sure to write down the following details and take them with you the first day:  company address and phone; client supervisor’s name; dress code; hours; name and phone number for your staffing coordinator.  Having this important information available will help ensure you are on-time the first day and get off to a great start.

Display a positive attitude. When you work as a temporary, you are put into unfamiliar situations with people you don’t know.  Make a conscious decision to approach your new work situation constructively.  Choosing to display a positive attitude – even if you’re a bit uncomfortable – can help you manage the stress of your first day.  Your optimism will be appreciated by co-workers and assignment supervisor alike and set the stage for a great working relationship.

Listen. Although you may be accustomed to completing work a certain way, most employers have specific systems and procedures already in place.  When your supervisor gives you your work instructions, pay close attention and take notes (in your memo book).  If any instructions are unclear, be sure to ask for clarification.  Your employer will understand that you are new, and he will respect your attention to detail.

Stay out of office politics. Every company you work for on assignment will have a unique corporate culture.  As a rule of thumb while on assignment, strive to remain neutral, avoid office gossip/politics/arguments, and focus on the job you have to do.  If conflict is making your work difficult, contact your staffing coordinator immediately.

Take initiative. If you finish your work ahead of schedule, ask for something else to do.  You will earn a reputation (with both the staffing service and the employer) as a hard worker.  Remember, productive, proactive temporaries land the best assignments – and are the first to be offered direct employment.

Keep in touch with your staffing coordinator. Check in with him periodically to explain how your assignment is progressing.  If your assignment is nearing completion, let him know so that he can get to work lining up your next one.  Finally, tell him what you liked or didn’t like about the assignment once it’s complete.  The better he understands your areas of strength and work preferences, the better prepared he’ll be to match you with the ideal opportunity.

Get on the Path to Career Success

Find out how Berks & Beyond can match you with the ideal employment opportunity.  With staffing offices in Harrisburg, Allentown, Reading, Pottstown, Carlisle and York, Pennsylvania, it’s easy to come in and learn more about our services, available jobs and what we can do for you.  Contact a Recruiter to schedule your appointment today.

Go Social!

Like Berks & Beyond on Facebook.  It’s a fun, easy way to learn about our company, our staff and great employment opportunities in your area.

Technology vs. the human touch.

When it comes to your job search, which is better?  Job board technology is certainly efficient.  With a few clicks you easily can apply for several jobs in under an hour – all from the comfort of your own home.

But that same efficiency can work against you.  Jobs that are available to you are also available to literally anyone else with an internet connection.  When you submit your résumé, you may be one of dozens, hundreds or even thousands of applicants.  As the number of job posting applicants increases, so does the chance of your résumé being completely ignored.  How efficient is that?

Job boards do serve a purpose in connecting job seekers to employers.  But if you’re serious about finding a great job, here are several reasons why experienced recruiters, like the ones who work for staffing and placement services such as Berks & Beyond, beat job boards – hands down:

Reach the hiring authority – 100% of the time. A good recruiter has the ear of prospective employers and will proactively market you directly to key hiring decision makers.  Recruiters keep your best career interests in mind and ensure your skills, experience and personal brand are presented in the best light possible to potential employers.

Access the “hidden” job market. Many of Pennsylvania’s leading employers know that they have greater hiring success when working with a recruiter.  These companies rely on staffing professionals to handle the time-consuming legwork associated with finding the best candidates and skip the job board route altogether.

Get inside information on employers and their hiring practices. If you are interested in a particular employer, a recruiter can use his knowledge of an employer’s hiring processes (including interviewers’ personalities and interviewing styles) to help you successfully navigate obstacles.  Likewise, he can provide valuable insight on a company’s corporate culture, helping you more accurately evaluate career opportunities.

Maintain job search control. If you’re a top performer who posts his résumé all over every job board, you may suffer unintended (and unwanted) consequences.  Unethical staffing services may find your résumé on a job board and submit it without your approval or begin hounding you with phone calls.  With a good recruiter on your side, you can maintain control over your résumé and work with a single point of contact.

Manage job search anxiety. For many, finding a new position is extremely stressful.  Recruiters are experts at the process and can help guide you through the nerve-wracking process of interviewing.  By working with a recruiter you also enjoy peace of mind, knowing that you have someone else on your job search team.

Get a personal advocate and partner in your job search. In most cases (retained searches being an exception), recruiters aren’t compensated unless they actually place candidates.  Unlike a job board, they have a vested interest in ensuring the success of your job search.

Protect your privacy. If you think your current employer won’t find out you’re actively seeking another job, think again.  Many employers set up automatic search agents on major job boards which notify them if their employees are preparing to make a move.  When you work with a recruiter, you can rest assured that you will be represented anonymously, and that your job search will remain confidential.

Access temporary and contract opportunities. If you are out of work and open to temporary or contract employment, recruiters can place you in short-term assignments or project-based opportunities that get your foot in the door and may even lead to direct employment.

Berks & Beyond – The Human Touch in Recruiting and Placement

Technology is an important component in your job search, but nothing replaces a recruiter’s personal touch.  To us, you’re much more than just a résumé or an application.

We listen and take a real interest in matching you with an opportunity that suits your unique skills, needs and interests.  Contact a Berks & Beyond recruiter today to learn more about administrative, light industrial, accounting/finance, engineering, HR, managerial and skilled trades opportunities throughout central and southern Pennsylvania.

At Berks & Beyond, we constantly strive to match candidates with leading employers throughout Central and Southern Pennsylvania.  We take great pride in what we do and want to share a few recent success stories, in our employees’ own words:

The One I Have Been Waiting For

“I had a great time yesterday at CPS, I was there for 5 hours of orientation… It is a great company and I know this is where I need to be.  It feels great.

Heidi, I want to thank you and your team along with B & B for great service and response to my needs.  I responded to one job ad from Chris G. and asked your office for information and in 2 days’ time I was called for an interview.  Wow!!  It was the one I have been waiting for all this time.  I would like to thank you in person if you will be around today or tomorrow.  Thank you for your time, Great job.”

–Eric L. Pritchard

A Grateful Thank You

“As a marine biologist who is looking for a permanent job in my field, Berks & Beyond Employment Services gave me a means in order to support my financial obligations that I currently have, including insurance & medical bills.  While I was unemployed & looking for a part-time job that would support me, I found a classified ad in the Patriot News that said that Berks & Beyond was looking for people to do warehouse-type work.  I called their office inquiring as to what the job would entail & I decided to apply with their organization for part-time work.

While working for Berks, I worked hard & put my effort into doing the job right that they put me in.  In doing so, I was acknowledged with the company as a responsible & hard worker.  In doing so, I lasted with the Davis Beverage Group for 2 months as a temporary part-time worker before becoming a permanent staff member with David Beverage on April 11, 2011.  In addition I was awarded as being the Employee of the Month with Berks 1 week prior to becoming a permanent staff member with Davis Beverage for the month of April.

I owe Berks a grateful thank you for giving me work to support myself in an economy that has sunk very low in our country.”

–Lee N. Stillwagon

Put your success story here.

Are you between jobs?  Returning to the workforce?  Looking to gain experience or greater job flexibility?  Call Berks & Beyond today.  We’ll listen to your needs, match you with a great temporary, contract or direct opportunity in Central or Southern PA, and make you our next staffing success story.

The following top candidates are highly skilled, motivated and ready to go to work for you:

CNC MACHINIST

Candidate Initials: J. R.

Skills and Experience: This mechanically inclined candidate has excellent knowledge of all aspects of machine operation and set-up.  Experience in running  a range of CNC machines, including Mori Seiki (SH-503), Toyota CNC Machine, Mori-Seiki (SH-Milling), DMC 80H CHC Machine – Horizontal Spindle, Matec 30S CNC Honing Machine – Vertical Spindle, and Surftran Washing Machine/Automatic.  Also experienced in shipping/receiving, stock and inventory.

Education and Certifications: H. S. Diploma; Certified Forklift Operator.

Desired Pay: $11/hr.

To learn more about this candidate, please contact Katie in our Allentown office at Katie@berksandbeyond.com or call 610.435.9270.

EXECUTIVE ASSISTANT

Candidate Initials: C. B.

Skills and Experience: Professional,  presentable Executive Assistant with over 12 years of experience, who most recently worked as a Contract and Project Administrator.  Has worked closely with individuals in various departments/functions such as legal, accounting and project management. This highly energetic self-starter works well independently or as part of a team, and is looking for a temp-to-hire or direct placement opportunity.

Software Skills: MS Word, Excel, PowerPoint and Visio; AS400 experience; willing to learn new applications.

Desired Pay: $17/hr.

To learn more about this candidate, please contact Allison in our Reading office at Allison@berksandbeyond.com or call 610.376.9675.

According to SpendingPulse, Americans spent roughly 5.5% more this holiday season than last.

Could it be because they’re expecting pay raises in 2011?

Possibly.  A recent Workforce Management article included results from a number of surveys which showed pay increases running as high as 3% in 2011, with an average increase of 2.7%.  After two to three years of salary freezes and other human resources cost-reduction strategies, employers seem prepared to start the thawing process.

Here are a few key statistics from the Towers Watson, Mercer, Hay Group Inc. and Conference Board surveys:

• According to CPI projections by Georgia State University, pay hikes should comfortably outpace inflation rates in 2011, with a 2.8% pay raise equaling a “real” salary increase of 1.1%.
• Only 2 % of companies surveyed plan across-the-board pay freezes in 2011, down from 13% in 2010 and 31% in 2009.
• Companies continue to strengthen the link between pay raises and performance.  Top-ranked talent will receive pay raises averaging 4.5% this year; average performers 2.7% raises; low-rated workers only .5% raises.

Although unemployment rates continue to remain high, the upswing reflected in these survey findings should get you thinking about attracting and retaining key talent.  If your organization is not able to keep pace with 2011 pay increases, consider offering spot bonuses, flexible hours, time off or additional training/skill building to keep your best employees working for you.

As a leading Central and Southern Pennsylvania staffing firm, Berks & Beyond has the resources to help you achieve your strategic staffing goals as the economy shifts gears.  Contact us today to discuss your plans for 2011.