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Do you have an issue retaining new hires - this could be the reason...

There are few things more frustrating for a hiring manager than to have spent weeks poring through CVs, conducting interviews and negotiating job offers, only to find their new member of staff jumps ship just a short while in. Whether it is due to a bad culture fit, mismanaged expectations or simply that the role is not right for them, many hiring managers find that the new member of staff has handed in their notice before they’ve even passed probation.

If this all sounds familiar, you’re not alone. According to a new study by Futurestep, 90% of respondents said that retention of new hires was a problem in their company. In fact, the poll uncovered a far more predominant problem as the majority of executives reported that between 10% and 25% of new hires leave within the first six months. Which begs the question, why? Small Business recently weighed in to shed some light on two factors that play a part in poor retention rates.

Reason 1: Culture

The study found that 19% of new hires – almost one fifth – left because they felt that they did not like or fit in with the company’s culture. This rings especially true for millennials, for whom connecting with their place of work and co-workers is inherent to job satisfaction.

Another area of concern was the longevity and efficacy of company on-boarding programmes. In spite of 98% stating that onboarding programmes were essential for retention efforts and 69% had programmes in place for all employees, just 30% said that the process lasted one week. Others lasted just one day (23%).

Bill Gilbert, president for North America at Korn Ferry Futurestep, said that the programmes must do more than just offer an overview of administrative tasks like how to work the coffee machine. “It should be an in-depth process that introduces the new hire to company culture, vision and strategic priorities,” he said. “It should also help new hires understand available development opportunities to help them succeed in the organisation.”

Reason 2: Brand image

Brand image plays a key role in creating and maintaining company culture. Consider how you could describe your industry or organisation and ask yourself if that image correlates to what you tell applicants. Does reality fail or exceed expectations?

Employers should avoid branding themselves in inauthentic or inaccurate ways in order to better manage expectations. Presenting your organisation as young, fun and creative may do wonders for attracting candidates, but if the reality doesn’t measure up when they get there you might find yourself losing top talent just as quickly. Just like in love, there is a job out there for everyone – so take the hallmarks of your brand and embrace them. Better suited applicants will soon follow suit.

As Gilbert conclude, keeping new hires is a critical issue given the increasing need for specialised talent: “It’s incumbent upon recruiters and hiring managers to paint a clear picture of what will be expected of the candidate in his or her new role, and make sure promises of resources, job structure and reporting relationships are fulfilled.”

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