Competition among the most innovative companies is growing ever more heated for one of the most highly-coveted resources on the market: talented employees. But sadly, too many new hires slip away because of a poor initial experience with their new companies. Consider the following statistics, which represent broad data in the United States:
- Nearly 33% of new hires look for a new job within their first six months on the job. (Among Millennials, that percentage is even higher … and it happens earlier.)
- Twenty-three percent of new hires turn over before their first anniversary.
- The organizational costs of employee turnover are estimated to range between 100% and 300% of the replaced employee’s salary.
It typically takes eight months for a newly hired employee to reach full productivity.
The problem is that managers’ lives are busier than ever, so it’s simply not that easy to make sure an employee’s first few months at your company are as welcoming, stimulating, and productive as possible. Ineffective onboarding has been a systemic challenge for as long as I can remember. Kristin Yetto, SVP HR, eBay, heartily agreed in a recent conversation we had, pointing out “when employees get off on the wrong foot at a corporation, it can have major implications for [their] long-term integration.” The unfortunate reality, as Kristin and many of her colleagues in HR know all too well, is that most companies — by their own admission — pay little to no attention to the onboarding process.
Read full article on Harvard Business Review.