According to a new survey from the US, twice as many employees with less than two years’ service voluntarily leave an organisation compared to those with longer service.
The findings, from Sirota Survey Intelligence’s study of worker attrition rates which covered 47,000 employees, indicate that of all staff who leave in any given year, almost 60 per cent have less than two years’ tenure.
Around 20 per cent of workers with less than two years’ service quit in any one year, compared to 10 per cent of those who have been in their job for more than two years.
“To improve overall employee retention rates, companies should pay closer attention to retaining workers with less than two years’ experience in their jobs,” said Douglas Klein, president of Sirota Survey Intelligence.
“Many leaders fail to recognize that new employees are enthusiastic about staring a job, and that, by their actions, management destroys this enthusiasm.
“Our research shows a measurable decline in employees’ morale after they have been working for an organisation for six months, and this deterioration worsens as they continue to evaluate what they expected against what they are receiving,” Klein added.
“Best-in-class companies do not create this decline in morale as seen in the overall trend.”
David Sirota, chairman emeritus of Sirota Survey Intelligence said: “During the first two years on the job, employees are confirming that their actual jobs meet their expectations, as well as those that their employers led them to believe during the
recruitment process.
“Since management’s attitudes and behaviours can enhance employee retention,
companies should invest in improving managers’ leadership skills, and creating an
environment where employees feel genuinely valued by their employers.”
According to analyses based on the study, companies can improve the retention of newer employees by 10-13 per cent by adopting more effective management policies and practices.
Key actions include:
- Making the work more challenging, if possible
- Being clear about potential career paths and providing greater opportunities for
Development - Managers being more consistent in what they say and do
- Creating an atmosphere where employees feel valued: recognising them for good
performance, and listening to their ideas and acting upon them - Creating a secure environment where employees do not continually feel as if they
are on a ‘slippery slope’ - Encouraging high standards of personal and professional integrity, such as clearly
laying out what’s expected in terms of ethics, and establishing accountabilities and
consequences for exemplary and sub-standard behaviours.
“Companies can save considerable sums of money by improving the retention of newer employees,” added Sirota.
“It is commonly estimated that it costs more than one and a half times the
salary of a departing employee to replace him or her when factoring in recruitment and training costs and lost productivity.”
