Employers Report Frequent First-Year Departures

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<p><strong>Boston &mdash; March 8</strong><br />A significant number of organizations lose as many as a quarter of their new hires within the first year, according to a survey of 2,000 HR and training executives by Novations Group, a global consulting firm based in Boston.&nbsp; </p><p>One-third of employers suffer such a loss, and for an additional 11 percent of companies, first-year departures can approach 50 percent.</p><p>With respect to recruitment by your organization, about what percentage of new hires leaves your organization (voluntarily or involuntarily) within the first year of employment?</p><ul><li>Less than 10 percent: <strong>54 percent</strong></li><li>Between 10 percent and 25 percent: <strong>33 percent</strong></li><li>Between 25 percent and 50 percent: <strong>11 percent</strong></li><li>More than 50 percent: <strong>2 percent</strong></li></ul><p>&ldquo;The incidence of hiring failures is startling, even to experienced selection and assessment professionals,&rdquo; said Tim Vigue, Novations executive consultant. &ldquo;Because there&rsquo;s no reliable baseline data we don&rsquo;t know for sure if the findings mark a trend or whether first-year departures have been a pressing problem for a long time.&nbsp; But we think they&rsquo;re a not a new issue. <br /><br />&ldquo;It appears that individuals and hiring managers are not sharing enough of the kind of information that would help each side determine if there is a good match. This makes it a lot more difficult for new hires to get up and running in the new job and frequently results in new hires quitting.&rdquo;<br /><br />What are the reasons that new hires leave your organization within the first year of employment?<br /><br />(Please select all that apply.)<br /></p><ul><li>Unrealistic expectations of the job and organizations: <strong>48 percent</strong></li><li>Failure to grasp &ldquo;how things get done&rdquo; around the organization: <strong>39 percent</strong> </li><li>Poor communications with immediate supervisor: <strong>33 percent&nbsp;&nbsp;&nbsp;&nbsp;</strong></li><li>Failure to develop a sense of belonging and purpose: <strong>26 percent </strong></li><li>Inadequate technical skills: <strong>23 percent</strong> </li><li>Not understanding the link between the job and organization goals: <strong>21 percent</strong></li><li>Failure to connect with key employees: <strong>18 percent</strong> </li><li>Inability to establish trust and credibility quickly: <strong>13 percent</strong> </li><li>Poor people skills: <strong>13 percent</strong> </li></ul><p>The study underscores the need for the organization to be realistic about what the job entails, Vigue said.&nbsp; </p><p>&ldquo;The employer has the responsibility to be clear and straightforward,&quot; Vigue said. &quot;Not to do so proves to be self-defeating.&rdquo;<br /><br />Vigue also observed that not developing a &ldquo;sense of belonging&rdquo; ranks high among the reasons for failed hirings.&nbsp; </p><p>&ldquo;One-quarter of our respondents pointed to this real human issue: the need for new hires to bond with co-workers and the direction the company is taking,&quot; Vigue said. &quot;The finding underlines what all HR professionals know, that people stay with an organization only if they feel connected.&rdquo;<br /><br />The Novations Group Internet survey of 2,046 senior HR and development executives was completed in December 2006 by Equation Research.</p>

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