Quick Status: State of the New HireNovember 30, 2016
With the economy in an upswing, people are feeling secure enough to actively seek jobs as well as leave the jobs that, for one reason or another, they donít feel are good fits for them anymore. While this has several different ramifications, from to recruitment to talent retention to knowledge retention, letís focus for the moment on just one thing: new hires.
Hereís some research on the current state of the new hire:
- Half of all hourly workers leave their new jobs within the first 120 days. (SHRM)
Whatís the Average Cost of Replacing a New Hire?
- 16% of annual salary for jobs earning less than $30,000 per year
- 20% of annual salary for mid-range positions earning between $30,000 and $50,000 per year
- Up to 213% of annual salary for executive positions (Center for American Progress)
How Can We Get New Hires to Stay?
- New employees who attend a well-structured onboarding program are 69% more likely to stay with an organization after 3 years. (Korn Ferry)
- 76% of respondents to a BambooHR survey agreed that on-the-job training is the most important thing a new employee needs to get up to speed and contributing quickly. (BambooHR)
- A leading 33% of respondents say that their manager had the more influence than anything else on the effectiveness of their onboarding. (BambooHR)
Some quick takeaways:
- Itís not a done deal after you hire them. New hires are actively weighing the pros and cons of staying with your organization, and theyíll make the decision in the first six months or fewer.
- Replacing a new hire who decides to leave is expensive. Take that into consideration on top of the recruitment, onboarding, and other expenses youíve already invested in that new hire who has left.
- The onboarding experience makes a huge difference in the new hireís decision to stay, but the vast majority of new hires arenít receiving the tools and information they need to be effective in their job - both of which are huge contributors to new hiresí ability to engage with their new job, environment, or culture.
Check out the other blogs in our mentoring for onboarding series by mentoring training expert Judy Corner, or watch the recording of our recent webinar ď So Youíve Got New Hires! Now What?Ē