Companies lose almost one-quarter of all new employees within a year, a new study shows. But they can’t place the blame on external factors such as the economy, demographics or cultural trends, human resource experts say. Companies need to look within at factors such as underfunded onboarding programs or a lack of training and mentoring to understand why they are hemorrhaging employees.
The financial toll for these shortcomings is significant, a survey of 500 HR professionals sponsored by Allied Van Lines found. To fill one position costs an average of USD10,731, with an additional USD21,033 per new hire for relocation.
The money that companies spend on onboarding pales in comparison to the money spent on recruiting, the survey found. The average spend on onboarding among companies surveyed is USD99,191 per year, which equates to about USD67 per new employee.