Follow these tips to reduce turnover and decrease the amount of time between date of hire and positive productivity.
Hiring is expensive, but turnover is even costlier, negatively impacting a company’s profits and productivity on many levels. With the great deal of time and money a company invests in recruiting, hiring, and training, it’s essential to hang onto new employees in order to come out ahead.
According to Dr. Mary A. Gowan, Chair or the SHRM (Society of Human Research Management) Foundation Research Evidence Committee, “more than 25 percent of the U.S. population experiences some type of career transition each year and, unfortunately, many transitions are not successful.” When it comes to professional positions in financial industries, such as banking and investment, half of outside hires fail within 18 months. The Wynhurst Group adds to the dismal statistics, declaring that 22 percent of staff turnover occurs in the first 45 days of employment and 46 percent of rookies get burned out in their first 18 months.
Finding, hiring, training, and transforming new employees into productive and dependable members of your staff can be a painstaking process, but if you follow these proven tips and guidelines, you’ll stand a much better chance of reducing turnover and decreasing the time it takes for new hires to become positive contributors.
Effective Onboarding & Comprehensive Orientation
Effective onboarding programs and comprehensive orientation strategies are essential to overcoming the challenges of recruiting and hiring. Onboarding assists new employees in adjusting to the social and functional aspects of their new positions, paving the way for them to swiftly become beneficial contributors.
The Wynhurst Group found that new hires who attended a structured onboarding program were 58 percent more likely to remain employed by the company after three years.
Orientation programs serve a practical role in employee initiation, helping them to understand the important facets and details of their jobs, exposing them to the company’s history and goals, and familiarizing them with the organization’s culture and values. But the truly effective orientation and onboarding programs are those that also serve a social role, putting newcomers at ease by promoting interaction with their co-workers, higher-ups in the company, and other recently hired individuals.
Help New Employees Feel at Home
Research shows that new employees decide whether they feel welcomed within an organization in the first three weeks, and many individuals admit that the motives behind their decision to resign from a company within the first six months are due to failed social integration as opposed to issues pertaining to their actual position (Wynhurst Group).
According to a study by talent management firm The Novations Group, “not developing a sense of belonging ranked among one of the top reasons for failed hirings.” People remain with a company when they feel connected on both a professional and social level.
To prevent feelings of disconnection, many experts recommend implementing a mentor program. Mentors provide support, both professionally and socially. Not only can they help new employees learn the ropes of an organization and offer assistance with job instruction, they can also serve as a non-intimidating source of personal advice. New employees are much more likely to ask questions of a mentor than a manager, as they won’t be as afraid of appearing incompetent. Knowing where to turn for quick answers bolsters confidence and increases a new hire’s chances of success.
Clarify Performance Standards & Goals
Many companies make the common mistake of approaching goals and performance standards as a one-way street. Yes, it is important to clearly define the goals and standards of your company, but ignoring the ambitions and principles of your new hire is detrimental to both of you. The more a company helps its employees achieve their professional and personal aspirations, the more productive and successful the employee will become.
The top talent isn’t only skilled—they are ambitious. If they feel they aren’t getting opportunities to reach their fullest potential, they’ll eventually seek out greener pastures. By learning about your new employees’ goals, you’ll be able to not only assist them in reaching those goals, but also to gauge the tenacity and motivation of your new hires.
The key is to discover raw, underutilized talent, and then foster an atmosphere where your employees can come into their own while simultaneously promoting the success of your company.
When you implement these strategies, your new financial employees will not only succeed, but will quickly develop into top performers quickly and stick around for the long term.
If you are looking for assistance landing top financial talent in the California area, contact the recruiting experts at Conexus Recruiting today. We have the experience and resources to help you find the best fit for your company.