Have you ever considered the money lost from new Hire turnover? We tend to mostly just focus on annual turnover rates, but new hire turnover (employees leaving within the first 6 months) is costly, both in time and money lost. So, it's extremely important that you make sure you are doing everything you can to minimize the amount of new hires leaving.
After much research and in talking to industry professionals, we have found that there are three very important things you should always keep in mind. Check them out below.
1. Realistic Job Interviews
It's super important that any new hire gets a real taste of what the job will be like, and this can't be done by talking to a few managers in a conference room somewhere. Realistic job previews work because they eliminate the chance that the new employee will be shocked by company culture. Company culture includes the actual working space, meeting the other coworkers, and getting a clear picture on what the typical day looks like.
It’s imperative for prospective candidates to see where they would be working and with whom. They can then get a feel of the day-to-day life and office culture and can then make an educated decision about taking the job or not, which eliminates the chances of the employee to quit based on office culture differences and expectations.
2. Onboarding & Training
As you know, the early stages of an employees’ career are the most important when it comes to retention. In order to keep your newly hired employees happy and productive, you need to make sure their introductory weeks are as pleasant as possible. In fact, a survey by BambooHR found that 76 percent of employees surveyed said that on-the-job training was the most important part of their first week at a new job.
So it only makes sense then that in order to retain your new hires, you should have a stellar Onboarding process that provides valuable job training. The survey also found that 21 percent of employees who quit a new job did so because of a lack of effective training.
Some key aspects to employee onboarding include:
Mentoring programs are inexpensive and easy to implement and benefit everyone—seasoned executives, newbies, and the organizational bottom line. “Studies have shown that employees that are mentored stay on the job longer than those who are left to sink or swim," according to MentorScout. As far as retention is concerned, mentoring programs do a phenomenal job for new hire retention rates.
“A high percentage of turnover is directly caused by employees not knowing how to do their job. Give employees the ability to do their job correctly and effectively and they will stay longer and give better results." - MentorScout
The first hurdle in creating a great mentorship program is to decide how to match mentor with mentee. There are several methods to do this, but the most common is pairing a senior employee with a new hire.
By the Numbers
If you're still not sure about the benefits of creating a successful new hire program, you need not worry: the numbers say it all.
- 69% of employees are more likely to stay with a company for three years if they experienced great onboarding. (source)
- Up to 20% of employee turnover happens in the first 45 days. (source)
- New employees who went through a structured onboarding program were 58% more likely to be with the organization after three years. (source)
- Organizations with a standard onboarding process experience 50% greater new hire retention. (source)
- The average cost of replacing an employee is between 16% and 20% of that employee’s salary. (source)
- The organizational costs of employee turnover are estimated to range between 100% and 300% of the replaced employee’s salary. (source)
- Nearly 33% of new hires look for a new job within their first 6 months on the job. (source)
- 23% of new hires turnover before their first anniversary. (source)
Performance and Productivity
- 60% of companies fail to set milestones or goals for new hires. (source)
- It typically takes 8 months for a newly hired employee to reach full productivity. (source)
- Best-in-class companies are 35% more likely to begin onboarding processes before day one. (source)
- Only 37% of companies extend their onboarding programs beyond the first month. (source)
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