One of the highest costs a company faces is the recruitment of talented employees. To keep those costs in line Human Resources professionals Pollster Amacon conducted a survey to find the top seven.
Figures show the continuing Michigan recession has reduced turnover rates. However, turnover of skilled labor and those earning less than $11.50 per hour expenses, to understand the reasons for new hire failures and to develop a plan to engage employees from day 1.
Here are the leading reasons for the 60 day failure rate.
1 - Job or workplace culture not as expected. The two most common workplace cultures are contemporary and traditional. It is as very difficult for someone to transition from the empowerment of the contemporary culture to the highly regimented traditional culture. Although moving in the other direction is easier, there are those that cannot make the adjustment. Therefore it is important to match an employee with your organizational culture.
2 - Mismatch between the job and the employee. Mismatch between the job and the employee. Most employees agree that jobs require a specific skill set. However they limit the search for the required skills to job experience, not personality. In fact, employee match depends greatly on personality factors, motivational interest, and reasoning traits.
3 - Lack of feedback or coaching Employees, particularly those in Generation X and Gen Y, need to know how their supervisor feels about their performance.
4 - Anticipated growth opportunities did not exist. Career oriented new hires seek both upward and lateral mobility to build their experiences and resume. Given the opportunity at a single employer they will be easier to retain. Absent the perception of this growth, departure is often quick.
5 - Feeling unvalued or unrecognized. This is an expansion of the feedback issue. Feedback, written or oral, public or private, needs to express value for the individual and their job function in achieving organizational goals.
6 - Stressed by overtime. Pressure to work long hours, paid or unpaid, infringes on the work-home balance so highly coveted by Generation X.
7 - Lack of trust in senior leadership. There is still tremendous skepticism in senior management. Assumed leadership trust and respect dies in the 1990s. Today trust must be earned. Too many leaders fail to accept this fact, thinking they can demand it. Replacing an employee can cost one and a half to two and a half times the annual pay for the position when all factors are considered.