By: Kelly Wilmott
You made a hire! Congratulations!
But… did you know that 33% of job-seekers leave within the first 90 days of employment? [Employee Cycle]
I’m not trying to be a Debbie Downer, but as you can see from the stats below, the data doesn’t lie.
- 83% of agents quit within the first three years of employment [PropertyCasualty360]
- The employee turnover rate has grown to 20% for insurance agencies of all sizes [Vertafore]
- 1 in 5 people reported changing companies in the past 12 months, and financial considerations—such as salary and bonuses—were the main drivers. [Vertafore]
- It costs 6-9 months of a salaried employee’s salary to replace them [Enrich] [SHRM]
- 35% of companies spend zero dollars on onboarding, but splash out around $11,000 on recruitment and turnover costs (rather than investing any money in ensuring the new hire’s success) [Enboarder]
- 48% of people are leaving their current job and moving to a new industry [Workforce]
I hear you gasping in horror over there! But …. does this sound familiar?
With the number of job openings within the U.S. increasing to 11 million [Bureau of Labor Statistics] in recent months, there’s a lot of competition for the best jobs on the market. Candidates are searching for the most attractive deal and while this is different for every job-seeker, they will certainly be looking at what you offer in terms of salary, benefits and compensation, work-from-home flexibility, career development, work culture, and work-life balance.
But they signed an offer letter? They should be good to go right?
Not necessarily. Your new hire could still peace out, and it could be without prior warning.
So how can you reduce the likelihood of your new hire quitting?
Great question. I would love to tell you …
It’s simple. You need to have an effective onboarding program in place to ensure the success of your new hire and here are some stats as to why:
- Having a great employee onboarding improves employee retention by 82% [Kallidus]
- Companies that invest $1,500 on training per employee can see an average of 24% more profit than companies that invest less [360Learning]
- A 10% increase in educational development produced an 8.6% gain in productivity [Shiftelearning]
- After a great onboarding experience, 69% of employees stay with their employer for at least three years [SHRM]
- Companies that offer thorough training had more than twice the amount of income per employee over firms that offered less training. [ShiftELearning]
What is an effective onboarding program and how do I get a new hire past the 90-day threshold?
Onboarding programs are going to vary from company to company but ideally, they should be ongoing and not just end after a week. Having a plan is key, so here are some tips on what can be implemented in your onboarding strategy to help guarantee your new hires’ long-term success:
- Clarify Job Expectations Immediately
Clearly outline the job responsibilities, and any career development opportunities, set clear objectives and goals of the role, and what they should expect from their company’s culture and work environment. Also, don’t forget that roles and responsibilities should also be outlined to existing team members so everyone is on the same page and any friction is kept at bay.
- Plan Regular 1-on-1 Check-Ins / Collect Feedback
Having regular 1-on-1 checks-in is the perfect opportunity to build rapport, praise achievements, set SMART goals, go over expectations, as well as exchange ideas, and collect feedback. Collecting feedback and listening to your employees will help you understand if there are issues that need addressing and help your employees (new hires included) feel appreciated.
Did you know that getting feedback can actually help reduce 90-day turnover and bolster long-term retention by 91% [Kallidus]? Also, a recent study by Perceptyx found that organizations that listened to and acted on employee feedback were 11 times more likely to have high retention rates and three times as likely to meet or exceed their financial targets. [HRMorning].
Those check-ins have never been so important!
- Define Career Path & Growth Opportunities
A lack of growth is one of the biggest reasons for an employee to quit. From as early as the application stage, employees look for opportunities to develop their current skill sets and advance their careers, so if an employee feels stuck in their role with no room to grow, they’ll look elsewhere to get that. Discuss the various ways the new hire can hone their skills and advance their career – it will set them off on the right foot!
Talk with your new hire about what they are supposed to be doing, how they can achieve their goals, and what tools you will provide to help them to succeed. No matter the experience, no matter the team member, communication is key to running a successful business.
There is no better feeling than being made to feel welcome. After all, first impressions matter, so make a positive impact from day one: have a team meeting with introductions and icebreakers, pair new hires with an onboarding buddy, take the team out to lunch, and start planning for future social events so you can all get to know each other. Establishing strong connections early on and especially as a team can ensure the new hire’s experience is both positive and productive and will certainly play an integral role in their commitment to the role they signed up for.
Think about this: why spend all that time and money trying to find the perfect fit for your team only to lose them to the competition after a few months?
Using IdealTraits’ industry-specific personality assessments to find your ideal candidate is a no-brainer! But… even after you’ve moved them over into the hired section, you still need to have an effective onboarding program in place to ensure their success, the success of your team as a whole, and the success of your business.
What happens next in your new hire’s career journey is down to you. Will they be a long-serving successful member of your team (and community) or will they peace out? We hope for you, that it’s the former! Happy Hiring!