Has your executive induction process been designed to ensure your new recruits retain the information they need and stay with you?
With the economy looking up, people are feeling secure enough to seek new jobs and leave those that aren’t a good fit for them anymore.
While this has many different implications for your organisation, let’s focus for the moment on new recruits.
I wish to share with you some revealing research I came across recently:
How Are New Recruits Thinking?
- 86% of new recruits make their decision to stay or leave the organisation within the first 6 months. (Source: Aberdeen Group)
- 89% of new recruits say they do not have the right level of knowledge and tools necessary to do their job. (Source: Aberdeen Group)
- Half of all recruits leave their new jobs within the first 120 days. (Source: SHRM)
What’s the Average Cost of Replacing a New Recruit?
- around 16% of annual salary for front line employees
- around 20% of annual salary for mid-range positions
- Up to 213% of annual salary for executives
How Can You Get New Recruits to Stay?
- New employees who attend a well-structured induction program are 69% more likely to stay with an organisation after 3 years. (Source: Korn Ferry)
- 76% of respondents to a survey agreed that on-the-job training is the most important thing a new employee needs to get up to speed and contributing quickly. (Source: BambooHR)
- 33% of respondents say that their manager had more influence on the effectiveness of their induction than anything else. (Source: BambooHR)
Some Quick Takeaways:
Here’s the thing…it’s not a done deal after you recruit people!
Your new executives are actively weighing up the pros and cons of staying with you from the moment they are hired – and they’ll make the decision in the first six months or fewer.
Replacing a new recruit who decides to leave is very expensive, and that’s on top of the recruitment, executive induction and other expenses you’ve already invested in that new recruit who has just left!
The executive induction experience makes a huge difference in the new recruit’s decision to stay, but the vast majority of aren’t receiving the tools and information they need to be effective in their job from the moment they start.
If you want help in designing an induction process for your new senior executives or to explore how coaching can support your executive induction in a way that increases retention and speed-to-productivity, get in touch.