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1 in 8 new hires in Australia resign during probation: Report

News • 22nd May 2024 • 2 Min Read

1 in 8 new hires in Australia resign during probation: Report

Recruitment#Retention#Hiring#HRTech#HRCommunity

Author: Samriddhi Srivastava Samriddhi Srivastava
1.4K Reads
New hires are taking longer to reach full productivity in their roles. In 2023, the average timeframe for new hires to become fully productive was 24 days, but in 2024, it has extended to at least 35 days.

In the dynamic landscape of Australian employment, where talent acquisition and retention are paramount, a recent report sheds light on a concerning trend: approximately one in eight employees are resigning during their probationary period. These findings, unveiled in ELMO's 2024 HR Industry Benchmark Report, underscore the challenges faced by employers in onboarding and retaining new talent.

This statistic sheds light on the challenges faced by employers in effectively integrating new hires into their organisations, particularly amidst the backdrop of rising hiring costs across the country.

The report delves deeper into the dynamics of this trend, indicating that new hires are now taking significantly longer to reach full productivity in their roles. While in 2023, the average timeframe for new hires to become fully productive was 24 days, this has now extended to at least 35 days in 2024. 

Joseph Lyons, CEO of ELMO, underscores the significance of these figures, emphasising their "eye-opening" nature for HR leaders and the C-suite.

"At a time when productivity is front of mind for most businesses, it's worth asking whether your talent processes are as efficient as they could be," states Lyons in a statement accompanying the report. 

He highlights the importance of understanding the underlying reasons behind new hire turnover, stressing that this metric is crucial for HR leaders to monitor closely.

The report raises pertinent questions regarding the factors contributing to new hire turnover. Did the job fail to meet the expectations set during the recruitment process? Did a subpar onboarding experience leave a negative first impression? 

Previous research from ELMO suggests that the top reason for new hires leaving is often a misalignment between the job or organisation and the expectations set during recruitment. Other factors cited include a poor impression of the organisation and dissatisfaction with managers.

Lyons emphasises the critical role of effective onboarding programs in mitigating new hire turnover and fostering a positive organizational culture. "Meeting expectations and creating a positive first impression are vital for retaining new talent," he asserts. 

"The better an organization understands the success of their onboarding programs, the better position they will be in to retain new talent and minimize the impact on overall productivity."

Compounding the issue of new hire turnover is the significant cost associated with recruitment in Australia. On average, the cost of hiring stands at $20,000, with entry-level staff recruitment costing around $14,000 and executive recruitment climbing to $25,000. 

Against this backdrop, the revelation that 13% of new hires are leaving within the probationary period underscores the urgency for HR leaders to evaluate the efficacy of their hiring and retention strategies.

"Given the cost of hiring and the time it takes for recruits to get up to speed, it's essential for HR leaders to know how successful their hiring and retention efforts really are," Lyons emphasizes. "Otherwise, they could be wasting time and money, hindering productivity in the process."

In summary, the report's findings serve as a wake-up call for organizations to reevaluate their recruitment, onboarding, and retention strategies. As the landscape of work continues to evolve, addressing the root causes of new hire turnover is paramount for fostering a resilient and high-performing workforce.

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