Here's Why So Many Companies Lose Employees Shortly After Onboarding

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Lost the will to, or have organizations lost the will to connect with talent? Today's leaders are facing new labor market challenges requiring improved efficiency of techniques to quickly build skills and retention techniques that can keep the workforce skilled committed and engaged. The data suggests that in today's business environment, no industry is immune to extraordinarily costly talent turnover issues.

Related: High Employee Turnover Means It's Time to Reevaluate

Turnover rate

Voluntary turnover rates (employees who leave without being fired or laid off) are expected to jump nearly 20% in 2022. At a macro level, it might be easy to attribute these numbers to the crushed retail sector struggling to keep storefronts open, but turnover is affecting almost every industry sector, including those with well-paying job vacancies. The top industries with a turnover rate above 18% are:

Technology Life sciences and medicine Consultant Manufacturing

As you might expect, 45% of voluntary turnover comes from employees who have been in the role for less than a year. Imagine attending an onboarding session at your home, watching 30 other people in the room and knowing about 15 people, the room won't last a full year. High attrition imposes real burdens on remaining employees. With continuous turnover, the remaining employees are quickly overwhelmed by the volume of work, they continually find themselves supplying new teammates on the job, and they have limited energy to bond with people who are unlikely to maintain the job. cap.

The United States Bureau of Labor Statistics continues to indicate that the turnover trend is continuing and, in many cases, accelerating.

Related: 9 Ways to Retain Your High Performers

The real cost of turnover

Companies can plan or even design business models that encourage the natural rotation of talent. In consulting practices, it is not uncommon for organizations to both maintain a flat organizational structure and limit career ladders to a few potential promotion ladders. With few employee promotion opportunities, career growth naturally encourages more experienced employees to move on, reducing the workforce in the long run.

However, today's compressed and stressed job market makes designed bearing more expensive. With unfilled jobs and the pressure of the recession, voluntary worker compensation is putting increasing pressure on managers and margins.

When an employee leaves voluntarily, especially unexpectedly, the true cost of turnover becomes more than just an HR expense. When productive talent with organizational responsibilities disappears, organizations incur a myriad of additional expenses:

Lost Opportunity Costs

Increased stress on remaining employees resulting in:

Reduced customer experience and quality of work

Negative pressure on culture

Increased demand for high performers to provide on-the-job training

There are several managerial accounting frameworks for tracking the true cost of revenue. A simple equation is to add the base costs of replacement and skill acquisition...