Your New Hire Has A 48% Chance of Quitting In 18 Months
The kicker is, you are on the hook for it.
In the world of HR leaders, we are all familiar with employee reviews. But, how do you feel when you are up for review and your employee retention is down?
Some studies, such as SHRM, predict that every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. For a manager making $40,000 a year, that’s $20,000 to $30,000 in recruiting and training expenses. What is turnover costing your company? How is the churn effecting your review?
The #1 Way To Impact Turnover, Start At The Beginning. Improve Your Onboarding And Orientation Practice
Many companies approach onboarding as something that stops when all paperwork is signed, and the employee’s first day is complete. Then with the orientation-day box checked, most HR professionals think their job is done. In reality it is just getting started.
An employee’s decision to stay or leave can be made within the first few days. First impressions have long lasting implications towards their perception of the company.
The average new hire is looking for another job in as soon as two weeks after being hired, because of poor first impressions (onboarding) – Monster.com
While onboarding isn’t new, this critical period in the employee life cycle is more important than ever. No employee wants to sit all day in a room doing a mountain of paperwork, then to be escorted to their desk and left.
A well-designed, fun and engaging onboarding process has a significantly greater effect on employee engagement and retention, when compared to the old-school mentality of one-day orientation. Onboarding is not a single event. It is an ongoing talent retention strategy. A strategy that should be broken down in to several parts and is best executed using technology.
Using Technology As Your Virtual Assistant
Imagine being welcomed each morning when you come to work. It is a feeling of ‘someone here cares.’ A well-designed onboarding campaign can do just that. As an example, an email or notification can be sent to the employee welcoming them to day-2. That note can list a few morning tasks, and then invite the employee to meet for a company tour at 9:00 AM. The new hire is engaged but not overwhelmed.
Your ongoing talent retention strategy should follow the same process. Continue breaking down the long list of new hire information and tasks into manageable sections, followed by a manager or HR touch point. Each communication can cast the vision of the company, explain the culture, and guide the new hire through needed paperwork. Touch points should be frequent at first, every day for the first week. Following communications can come weekly, then monthly, followed by a 6-month, 9-month, and one-year communication.
Don’t cut your strategy short. Remember this is your ongoing talent retention strategy. It is a strategy that will make a positive impact with your employees, lower your turnover rate and raise your review scores.
Your New Hire Has A 48% Chance of Quitting In 18 Months. *The Predictive Index Study