It’s always important to hire high-performers. But hiring and retaining high-performers for the long-term is a whole other challenge. In an era when the monthly quit rate hovers at historic highs, employees (especially the high-performing ones) have more options than ever, and they know it. This might please candidates, but it’s costing employers real money.
Some experts estimate that voluntary attrition can cost you 1.5-2 times the employee’s annual salary. According to Gallup, voluntary turnover may be costing US businesses as much as a trillion dollars annually. Reducing turnover, especially among new hires, will reduce your costs while increasing engagement and productivity over time.
To calculate the cost of turnover at your organisation, you can start by estimating how much it costs to attract, hire, onboard and train employees at different levels of your business. But the costs of replacing an employee really add up when you consider the cost of lost productivity while the position is empty and you’re working to hire their replacement. Even if you’re lucky enough to find a replacement quickly, it will still take months (sometimes years) for a new hire to ramp up to full productivity. Finally, if a role goes unfilled for a significant period of time, you can expect the people on that under-staffed team to become overwhelmed, burned-out, disengaged and less productive as a result.
In this post, we’re going to talk about three ways to increase new hire retention.
Build a Supportive, Welcoming Culture
Employees are usually most engaged when they start working at your company. The best way to sustain that engagement is to create a culture that values employees, rewards excellence and supports their personal growth and development. Give gifts, support wellness initiatives and look for opportunities to integrate new employees into your culture. Focus on being a great place to work and you will have less trouble convincing people to stay when times get tough – for them or for the company.
Emphasise Clear and Frequent Communication Throughout Onboarding
Starting a new job is exciting, but it’s also often confusing. Knowing where to go and who to ask for help isn’t always obvious. Regular check-ins and frequent communication between hiring managers, HR and new hires are a must to ensure the process is going smoothly. Does your new sales representative know how to enrol in health insurance? Does your new product manager know about the fitness programme your firm offers? Frequent check-ins of this nature will also help you identify any problems in your onboarding process so you can continue to fine-tune it for future hires.
Go Beyond the Traditional Benefits Package
Offering the standard combination of pay and benefits does little to differentiate your organisation in a competitive talent market. Augment your employee experience by investing in flexible wellness programmes and user-friendly technologies capable of contributing to an environment of care, health and balance. Show your people your organisation cares for their mental and physical wellbeing by supporting practices like exercise and meditation.
Don’t Downplay the Costs of Turnover
Now more than ever, voluntary turnover is too expensive a burden to bear. Focus on culture, communication and development early and often in the employee lifecycle. Your people will thank you for it.