A high turnover rate among your employees can cost you a lot, and not just in terms of money.

When I was in the US government, I used to work with a lab out in Hawaii. They tended to recruit their scientists with the expectation they would only be there for a few years. Even though this lab did cutting edge work, the location was a little remote. Yes, Hawaii sounds like fun, but living their is very different from going on holiday. While a job there was OK for young people right out of school, it was not quite as great when they started having kids and worrying about their future potential in their field. So, the lab often had a lot of young scientists with only a few years of experience, and the leadership was OK with that.

There is a monetary cost associated with that kind of turnover. The costs associated with the recruiting effort, plus any up front expenses (moving costs, signing bonuses, etc) get repeated regularly. But there is also a cost in terms of future leadership. If most people leave after a few years, where would the leaders come from when the current batch of leaders retires? Today’s leaders will not always be around, and the lab is shooting itself in the foot if it does not try to develop new leaders from within.

So, when you are recruiting with a long term view, what do you look for?

Well, first of all, you need to look for qualities beyond technical skills. Before you start reviewing resumes, build a list of those qualities you would like to see in a leader. You may be recruiting your own future replacement, so think about what has worked for you and what hasn’t. When you are interviewing applicants, be looking for signs of those characteristics, and focus on those people who have them.

Next, recruit in a way that encourages longevity. Offer incentives that go beyond immediate rewards, like signing bonuses. Look instead at deferred incentives, longevity bonuses, or advanced training and education with a commitment to stay with the organization for a minimum period of time. Pay very careful attention to the kinds of incentives you offer. If your recruiting bonus actually encourages people to leave (like the military accidentally does when they offer college tuition benefits to new recruits), they will leave. If you offer them no incentives at all, they may stick around only until they find a better deal. But if you offer incentives to stay, they’re more likely to stick with you.

Not every new employee is destined for leadership, and you should not apply this recruiting style to everyone. But you need to consider it when designing your recruiting plan. Growing organizations have demanding requirements when it comes to leadership, and it is harder to find a good leader by getting a senior person off the street than it is to find one by nurturing one on the inside. Identify your future requirements that need to be met now — and remember, grooming a leader can take years — and recruit now in a way that will help you meet those needs down the road.

By the way that lab in Hawaii? They opened a second lab in Omaha, Nebraska, right in the middle of the US. Omaha might not sound very exotic compared to Hawaii, but when it comes to attending professional conferences or taking the kids to see Grandma and Grandpa, it is perfect.