Here’s some research on the current state of the new hire:
- 86% of new hires make their decision to stay or leave the organization within the first 6 months. (Aberdeen Group)
- 89% of new hires say they do not have the optimum level of knowledge and tools necessary to do their job. (Aberdeen Group)
- Half of all hourly workers leave their new jobs within the first 120 days. (SHRM)
What’s 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:
- It’s not a done deal after you hire them. New hires are actively weighing the pros and cons of staying with your organization, and they’ll 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 you’ve already invested in that new hire who has left.
- The onboarding experience makes a huge difference in the new hire’s decision to stay, but the vast majority of new hires aren’t receiving the tools and information they need to be effective in their job - both of which are huge contributors to new hires’ ability to engage with their new job, environment, or culture.