The stats say it all: What you need to know about new employee retention

new employee retention

At some point in your career, perhaps even multiple times, you’ve been the new employee. You might even vividly recall the experience: Trying to remember everyone’s names, avoiding getting lost in the building, consciously clinging to every bit of information thrown your way – while attempting to display a high level of competency. Adjusting to a new job is no small feat, so why not aim to make the transition easier for your new hires?

Sure, part of the adjustment process depends on the individual’s approach and effort, but much of it – if not most of it – hinges on the strength of your company’s new employee retention and onboarding initiatives.

Did you know?

As we shared in one of our previous articles, 22% of turnover happens within the first 45 days of employment, and newly hired senior employees typically decide whether your company is home or not within the first 30 days on the job.

According to Work Institute’s 2018 Retention Report, first-year turnover is at the highest point in the past 8 years. In fact, 40% of all turnover in 2017 was attributed to employees who left their jobs within the first 12 months of employment, indicating a 17.6% year-on-year increase.

Source: Work Institute’s 2018 Retention Report

Having recently surveyed 2,000 full-time US employees, West Monroe found that 45% of respondents who have been with their current companies for less than a year have applied for new jobs after having a bad day at work.

The reality is that if employees aren’t happy at your company, they’ll look, or go, elsewhere. As evidence suggests, the first couple of months will either make or break new employees’ success, productivity and performance at your company – and, of course, you ultimately want to ensure that your new hires (especially high performers) make it.

The cost of losing employees

The US-focused 2018 Retention Report states that if the voluntary quits rate continues as projected, turnover costs will reach almost $680 billion in 2020. Further, the report suggests that, conservatively, each lost employee can cost a company an average of 33% of the employee’s base pay.

Recruiting, HR and business leadership expert, Josh Bersin confirms that the total cost of losing an employee, as per various studies, can range from tens of thousands of dollars to 1.5 to 2 times that person’s annual salary.

A shift from onboarding to integration

Many will agree that it can take six months to a year (sometimes longer) for a new employee to get up to speed with tenured colleagues. But the fact of the matter is that companies don’t always recognize this and assume that after receiving an introduction to the company culture, a run-through of the systems and processes, and a step-to-step guide on how the coffee machine works, new hires will be ready to soar.

Having an onboarding process in place is a great start, but ensuring that new employees are well integrated is where all the difference lies. Knowing that it will take time for new hires to find their feet and feel confident in their role, you will really benefit them and your company by introducing a robust integration plan that spans six months to two years.

Is your new employee retention and integration plan up to scratch?

If you’re serious about improving your integration program, you might enjoy the next blog in this series:

Read more: Does your new employee retention plan include these 7 things?

vi boosts new employee retention

Our integration and retention timeline solution ensures that all new hires fully integrate into your company, becoming part of your company’s “DNA” – another way we help you to stop losing great people!

Follow the link below to get started with a quick demo.

Get Started