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New hire retention an issue, Futurestep survey finds

March 21, 2017

Nearly all of executives polled in a recent survey, 90%, reported retention of new hires is an issue in their organization, according to a survey released today by Futurestep, a division of Korn Ferry (NYSE: KFY). Additionally, most executives said between 10% to 25% of new hires leave within the first six months.

The top reason new recruits leave is their role is different than what they expected it would be during the hiring process, the survey found.

“With low unemployment rates and increased need for specialized talent, keeping new hires is a critical issue,” said Bill Gilbert, president, North America, Korn Ferry Futurestep. “It’s incumbent upon recruiters and hiring managers to paint a clear picture of what will be expected of the candidate in his or her new role, and make sure promises of resources, job structure and reporting relationships are fulfilled.”

The survey asked, “To what extent would you agree that retention of new hires is an issue?” Responses include:

  • To a great extent: 54%
  • To some extent: 36%
  • Not an issue: 10%

“What percentage of new hires would you estimate leave the organization within the first six months?

  • Less than 10%: 36%
  • Between 10% and 25%: 52%
  • Between 26% and 50%: 12%
  • More than 50%: 1%

When asked, “What is the main reason a new hire would leave your organization within the first year?” responses included:

  • Their specific role is not what they had anticipated during the hiring process: 39%
  • They don’t like the company culture: 19%
  • They don’t see a path for advancement: 15%
  • They don’t like their boss: 15%
  • Working for the company is not as presented during the hiring process: 12%

Korn Ferry fielded the survey in February and March 2017 and garnered 1,817 responses.