Within a year, employers lose nearly one-quarter of new hires while another one-third don't satisfy productivity targets, according to Allied Van Lines’ 2012 Allied Workforce Mobility Survey.
Of the 500 human resources professionals who were surveyed, they say this is because of internal variables that impact retention success, such as underfunded onboarding programs or no available training programs. This retention problem is financially hurting employers as the average cost to fill one position is $10,731. Another $21,033 is necessary per new hire for relocation.
Onboarding also is costing employers with the average respondent spending $99,191 per year, totaling to approximately $67 for each new employee. For best-in-class employees, employers are spending even more at about $178,868 per year.
The survey finds that these best-in-class employees are more likely to stay with an employer for at least one year and meet or exceed corporate productivity goals. They also usually become corporate leaders or influencers.
Although most respondents report having some type of onboarding program, only 19 percent of respondents say they have a devoted budget for onboarding. Among the respondents with specific budgets for onboarding, they are almost twice as likely to be highly successful at their efforts.
Only 66 percent of respondents say their new hires undergo training. Of the respondents considered best in class for onboarding, one-quarter of those do not train their employees.
Respondents say the top three reasons new hires leave within one year are managerial relationships, job performance and career advancement opportunities. Despite this, only 44 percent of respondents have mentoring programs that could better managerial relationships while only 35 percent of respondents report having management participating in onboarding programs. Another 42 percent of respondents fail to identify clear job titles as well as expectations, and only 39 percent of respondents outline career goals.
According to the survey, most respondents are probably unaware of new hires’ unhappiness. Although 54 percent of respondents conduct exit interviews, only 13 percent of respondents practice stay interviews, which measure employee satisfaction while they are still employed.
Still, the survey also reveals that certain respondents are more successful with retention as 35 percent of respondents from large companies with at least 10,000 employees retain 90 percent or more of new hires past one year.