‘Premature Evacuation’ is causing Australian businesses $3.8 billion per annum
A worrying trend
Recent research by Korn Ferry shows that 90% of Fortune 500 executives are concerned about employee retention. There is ample evidence showing millennials have a greater propensity to leave their new jobs within their probation period –Invariably this is within 90 days and the replacement guarantee period. The trend is worrying, with global HR consulting firm Mercer surveying 163 large employers in 2018. They found that voluntary turnover in 2017 accounted for 15.5%, up from 14% the previous year. The Mercer research shows clearly that Millennials accounted for half of voluntary separations (51%), followed by Generation X (25%).
According to Deloitte ‘premature evacuation’ is causing Australian businesses $3.8 billion per annum in rework and lost productivity. These statistics are in line with typical comments we are hearing from many recruiters. We polled recruiters and anecdotally many share their concerns. Typical comments from many recruiters can be summarised by the following two:
“I believe choice is becoming more prevalent and so if companies are not willing to adapt to new ways of working, then they will suffer.”
“Millennials have been are overindulged by their parents and the school system. They expect everything instantly, causing false expectations that can’t be realised at work. We are very concerned about the impact this has on the longevity of our placement.”
Proven strategies for successful alignment
It’s been proven that when recruiters or employers provide structured onboarding processes to new employees it reduces the chances of unwanted employee turnover by 69% and that 84% of employees will stay longer haul with their employers.
I’ve designed a practical, proven and adaptable structured onboarding process on the famed McKinsey 7-S alignment framework. I thought that if organisations can get aligned by utilising this framework, then it makes sense that employees can too.
Here are the alignment choices we suggest new employees make and that you can support your placement with to reduce the chances of unwanted turnover during the guarantee period:
The for new employee, the central S to the whole model is:
1. Shared values with all the other S’s Structure, Style, Skill, Strategy, Staff, Systemsfeeding from the first S of Shared Values.
In subsequent articles we will address some of the main points of each of the 7 S’s for effective onboarding and how recruiters can reduce impact of ‘premature evacuation’.
Greg Weiss is Australia’s leading career coach. He is the author of “So You Got the Job! WTF Is Next?”. The book prescribes a proven, practical 7-step guideline for new employees, so they succeed, rather than fail their probation periods and beyond. Find out more about the book at https://www.wtfisnext.wtf
He is the Founder and Director of Onboff an online training and coaching platform that helps HR specialists, coaches and recruiters to deliver exceptional onboarding and offboarding experiences for employees.
He also hosts The Keep: The Employee Experience podcast and runs CareerSupport365