Putting together various research both on/offline, the recruitment industry, CV Library and from clients it is clear that concern about high staff turnover is a major issue. This has greatly changed and starting new job is seen as much as a trail period to them as it does to the company. The results are around 40% of new job starters leave before the first month is completed. This rises to 59% in the first 6 months.
This creates serious problems for companies searching for new talent. It also means a traditional recruitment fee with a rebate can prove very expensive. (Although highly lucrative for recruitment agencies as they get the candidates back and a new vacancy to work on.) There are variances for age, level, industry, job function, company size etc. but the pattern in as much the same. Companies are baffled as they cannot understand why in recessionary economic times people do not value secure jobs more.
No longer considered by most candidates as that is it, they increasingly see starting a new job as like a third interview to see what they think. It changes in job sectors but if you are achieving half of new recruits last the first quarter you are well above average!
Some factors affecting this high dropout rate are beyond your control, most though are within it. In short your recruitment processes and staff induction needs to be tightened up. Here are a few pointers.
Reasons for early drop outs are usually one or more of the following:
- Unhappy working environment.
- Unimpressed with management.
- Not what expected.
- Lack of confidence
- Lack of clear career goals.
- Bad career match of what is on offer to what is wanted.
All of the above you can influence, even if that means spotting someone on interview that is not a perfect match for you or them.
This is the point that we said we should either work with companies that have this as good as it can be, or those that are quite good and we can help them improve their retention rates. In later blogs I will cover exactly what you can do in more detail. On this basis we came up with the Guaranteed Replacement Investment Service which means we take the responsibility for a placement being successful. This service always includes any consultancy or advice in pricing proposals.
Part of our thinking is that accountants set annual budgets for recruitment and pass these to Managers. So we came up with deal that effectively works and gives guarantees within that annual budget. As we recruit at all levels and specialisms and also do all of the recruitment we can release a substantial stress, burden from Managers leaving them to focus on what they are good at. So there is no risk of asking for more budget due to low or even moderate staff retention.