The issue of new hire turnover can be a daunting challenge for many organisations. High attrition rates within the first year not only incur financial costs but can also impact team morale and productivity. Fortunately, Cognology offers a comprehensive suite of HR solutions designed to tackle this very issue. In this article, we’ll explore how Cognology can help you reduce new hire turnover.
28 September 2023
The escalating cost of new hire turnover is a pressing issue for Australian businesses, now more than ever. A recent research study by PriceWaterhouseCoopers (PWC) reveals a startling surge in the average cost of hiring a new employee—from approximately $10,000 the previous year to an eye-watering $23,000 per candidate. With the study surveying 1,800 Australian workers, it’s alarming to note that nearly 38% are contemplating leaving their current roles within the next year.
But the financial toll doesn’t end with hiring. Australian companies are investing upwards of $40,000 per new hire in engagement and retention strategies alone. This underscores the considerable fiscal impact that talent acquisition and retention have on the bottom line.
Adding another layer to this complex issue, the Australian Bureau of Statistics (ABS) reports that job mobility has hit a 10-year high, stabilising at 9.5% for two consecutive years. Among the working population, professionals demonstrate the highest rate of job mobility at 24%. Astonishingly, around 2.3 million Australians either left or lost their jobs within the year ending February 2023, even though the annual retrenchment rate dipped to a historic low of 1.4%, the lowest since 1972.
Understanding the root causes of turnover is the first step in resolving it. The main factors often include:
A poor onboarding experience can leave new hires feeling disoriented and disconnected.
New hires may find it hard to adapt to the company’s culture, resulting in a disconnect.
Unclear job roles and insufficient training can make new hires feel overwhelmed and undervalued.
Our onboarding module is designed to offer a seamless integration experience for new hires. From completing essential paperwork to induction processes, Cognology’s Onboarding Software ensures that new hires feel welcomed, prepared, and engaged from day one.
Cognology’s Performance Management System provides regular check-ins and feedback mechanisms to ensure new hires are aligned with organisational goals and expectations. This keeps both the employee and the manager on the same page, thereby reducing misunderstandings that can lead to turnover.
Our competency management features allow for the identification and development of key skills and behaviours that are crucial for success in any given role. Through continuous learning and growth, new hires are more likely to feel engaged and committed to their jobs.
One of the standout features of Cognology is its agile capabilities, including real-time feedback, custom forms, and regular check-ins. These features allow for quick adjustments and interventions, providing solutions to problems as they arise rather than waiting for annual reviews.
