New Hire Turnover

New Hire Turnover is a term that refers to the rate at which new workers leave an organization over a specific time, usually during the first few months or years following the date of their joining the organization. High turnover of new employees might have to do with problems with the recruitment process, orientation or work conditions, or inadequate job fit. This can translate into higher recruiting expenses, reduced productivity, and low morale among the current employees. Employers closely monitor their turnover rates for new hires to analyze trends, specify measures to correct deficiencies, and determine policies for better retention. Sufficient recruitment programs, clear communication of expectations, job-related learning opportunities and a positive workplace culture can prevent new hire turnover and improve overall employee retention, which are the factors of organizational stability and, therefore, success.

Example

A software development firm observes an unexpectedly high new hire turnover rate within the first six months of employment. While inquiring, it was clear that most new hires express a lack of understanding of their job expectations and limited opportunities for career growth. Consequently, the company overhauls its onboarding program by providing thorough instruction on the job description and company culture. They also support mentorship programs and allocate appropriate finances for continuous learning and career improvement. Thus, these employees are more likely to feel supported and committed, resulting in a high retention rate. Moreover, it is common for the company to conduct regular surveys, including feedback from the new employees, to improve their onboarding process.