Do you expect that your new hires will leave within 12 months? Do you annually budget for turnover expenses to replace terminated new hires? If you answered yes to either question, then keep reading.
From the initial welcome, human resources paperwork, job understanding and expectations, ramp up, and so much more, the onboarding process can become really frustrating – and if handled poorly, it can increase turnover rate.
Monster.com reports 30 percent of external new hires turn over within the first two years of employment. Retention statistics from other organizations, including the Society for Human Resources Management (SHRM), show that turnover can be as much as 50 percent in the first 18 months of employment.
Two decades ago, according to the Bureau of Labor Statistics, the average number of jobs held in one person’s career was six. Today, the average number of jobs held is 11. And according to the Bureau of Labor Statistics, the cost for replacing an employee is over 25 percent of their annual salary (some say 50 percent), so it is very costly when you don’t get it right.