How to Measure and Minimize Your Company's New Hire Turnover


Employee retention requires a considerable investment of resources, including money and effort. When you work in this, the last thing you expect is for a new employee to depart after a few weeks or months, forcing you to restart the hiring process. So, how can you limit new recruit turnover in your company right now?


What exactly is new hire turnover?

a new hire Turnover is a metric that determines how many employees in a company depart during a year or a specific time period. Organizations must track new recruit turnover to see how effective they are at hiring and onboarding employees. When an employee quits a firm, it usually has something to do with the company's culture, atmosphere, or specific areas. When an employee stays with a firm for more than two years, it means the organization has successfully managed the balance between employees and expectations.

Objective of measuring new hire turnover

The goal of measuring new hire turnover is to see how well your hiring and onboarding processes are working. Hiring a candidate who doesn't work out is quite costly either because the business or the person decided it wasn't a good match either. Furthermore, a high new hire turnover rate might impact your employer brand, recruiting budget, and team morale, so keep an eye on it.


As a result, lowering recruit turnover can help you save money while also improving recruiting process and onboarding.

Why do new hires leave their job so soon?

An unhealthy relationship with reporting managers:

 "People don't quit jobs; they quit managers," as the adage goes. New workers are rapidly turned off by bossy, disrespectful, or distant bosses.

Communication breakdowns are widespread in both SMEs and large corporations. Employees and their respective managers/team leaders frequently lose valuable resources as a result of poor interactions.

Managers who invest time onboarding new team members and meeting with them on a regular basis, on the other hand, help to launch a good partnership.


Incomplete training of new hire: You must train new staff on the job, including your processes and ways of working, regardless of how experienced they are. Make sure new recruits have the tools they need to succeed in their jobs before expecting them to execute on their own.

Many times, a person is expected to deliver results despite not having completed all of their training. In this situation, the employee is unhappy with his or her employment.


The job role is different from the job position: If new recruits discover inconsistencies in working hours, salary, perks, or job responsibilities, they may feel tricked and may leave. During the hiring process, make sure you address all of the crucial components of the position and obligations.

Organizations frequently accommodate a multi-skilled employee by assigning him or her to positions for which he or she was not employed. The management of resources and their talents must be optimized to the fullest extent possible so that both the employee and the employer should gain from it.


How to Measure new hire turnover

To measure the new employee turnover rate first establish how long you consider new recruit turnover to be (usually when hires leave anywhere before one year of employment.) If your sector has a high rate of employee turnover (e.g., hospitality, Retail), or if you provide fixed-term contracts, it may be more useful to measure how many workers depart within the first 30, 45, 60, or 90 days, rather than the first year.

When you’ve decided what duration counts for new hire turnover, divide the number of new recruits who left within the time duration by the overall number of workers who left during the same period.

Here's a formula for calculating first-year turnover. You may tweak this method to come up with your own turnover rate (e.g. 30, 60, or 90 days):

For example, if you have 250 workers working for a month and 25 of them depart, your new hire turnover rate is 25 / 250 * 100 = 10%.

Compare the number of new workers who departed to the total number of new hires you made over the same time period. Let's assume twenty-five workers quit last year before finishing their 90-day probationary period.


  • If you recruited 150 people, your new hire turnover might not be as concerning.
  • However, if you recruited 50 people in total, you could begin to question why half of your new hires quit. In such a scenario, reconsider your job postings and interviewing techniques.










How to Minimize new hire turnover

To decrease new employee turnover, you must address the fundamental cause of turnover. And there might be a number of them:


Enhance your hiring procedure.

Job descriptions that are well-written attract people who are interested in and qualified for the role. Also, be honest about employment requirements, working hours, perks, and income during interviews so that expectations and reality don't clash.

Tasks, role-playing exercises, and competency-based exams can help you figure out whether applicants who seem excellent on paper can also do well on the job. Before making recruiting judgments, do background and reference checks to create thorough candidate profiles.

Make plans for onboarding programs.

Organize new employee orientations. Give new hires a warm welcome to extend the joy of their new work. Arrange their workspaces, streamline HR processes so they can focus on learning their new jobs, and organize team-building events to assist them in adjusting to their new duties.

After 30, 60, and 90 days, follow up with new recruits. The first day of new hire orientation is important, but don't end there. Engage with new recruits on a frequent basis to see how they're performing. For the first several months, if required, assign them a work companion or mentor.

Collaborate with the recruiting manager.

Assign meaningful duties to new hires. New workers should be given intriguing tasks to work on that will pique their interest and allow them to demonstrate their abilities. Assist them in completing their jobs and boosting their confidence by providing direction.

Discuss future careers. It's never too early to start thinking about career development. Inquire about where they want to be in the following several months. Long-term objectives may be hazy at this time, but new recruits will appreciate your concern for their professional growth.

Create a healthy work environment.

Create a welcoming environment. New recruits will feel involved and appreciated if the company has procedures that reject favoritism, bullying and encourage open communication. Also, develop managers into strong leaders who will encourage team members, recognize their achievements, and ensure that all views are heard.

Make significant bonuses and rewards available. Consider providing rewards that encourage staff to be more productive. Employee advantages such as medical insurance, flexible working hours, and work from home possibilities are among the most popular. Also, chat to your present staff to see what types of incentives they'd like.


Why is new hire turnover important?

It's concerning to see new workers depart so quickly for a variety of reasons. This is because employee turnover may harm your business in the following ways:

Employer identity. Disgruntled new recruits who abruptly leave your organization may have an ax to grind. They are more likely to post unfavorable reviews on social media (Twitter, Facebook, and LinkedIn) that cause eligible individuals to reconsider applying for your vacant positions.

Budget for recruitment. Turnover has a significant impact on recruitment expenses. Every time an employee leaves and you need to cover their roles, you overspend on hiring than you expected (e.g. job boards fees and skill assessment software.)

Team harmony. New hire turnover depletes your teams by leaving them understaffed. Hiring and onboarding new personnel also take time. These changes might have a negative impact on your team's productivity and morale.

Research shows that employees who thrive in their jobs are 31 percent more likely to stay with the same company for three or more years. The key is consistency: To minimize turnover and employee dissatisfaction, ensure the job lives up to how you described it during your hiring process.

Discuss at for assistance to Minimize your company turnover.