The 2016 SHRM Human Capital Benchmarking Report offers some eye popping figures for all employers to consider. Consider these two survey results:
- Cost per Hire: $4,100
- Avg Annual T/O rate: 19%
As bad as these figures are, they don’t include hidden costs to turnover such as:
- Reduced productivity
- Low morale
- Deadlines missed, sales lost, initiatives slowed, etc.
There is no silver bullet to solve this challenge, but a review of surveys and research offer tips to improve new employee retention and reduce turnover:
- Hire carefully
- Employers using targeted sourcing techniques, followed by skilled interviewing and valid assessment steps are more likely to find candidates that are a good match. A good match from the start is more likely to lead to a successful, long-term employment relationship!
- Onboard and orient
- New employees decide within one month of hire if their new employer is right for them, or if they need to find a new home. Employers must carefully plan a new employee’s first days/ weeks/ months to include meaningful opportunities to engage and connect with co-workers and the organization’s culture. They must feel supported, set up for success, and not “left in the weeds”. “Sink or swim” approaches leads to Lose-Lose, not Win-Win.
- Employers with fun, engaging cultures of transparency and open communication that nurture meaningful relationships among employees are more likely to successfully engage new employees. Cultures that offer professional development/ career growth, mentoring and coaching are highly valued by new hires.
- Competitive comp
- New employees are working for a living, so be sure they earn a competitive wage! Otherwise, despite a great culture, they may be forced to leave just to pay their bills.
- Meaningful benefits
- Closely related to compensation, employers that provide choice in benefits are more valued today by new employees to meet their unique needs. Be creative and offer low or no-cost benefits like flexible work schedules; new hire today expect this to achieve work/ life balance. Personalized benefit options help offset lower wages.
MSEC offers many resources and services to help members improve recruiting, hiring and new employee engagement practices – call us today!