Early turnover during onboarding is a serious problem that many companies face. When new employees leave the company shortly after being hired, this not only affects productivity, but also causes high costs and internal tensions. Effective integration of new employees is therefore crucial for the long-term success of a company.
In this article, we look at what early turnover means, what is meant by early turnover, why it is so important for companies and how targeted measures can improve the retention of new employees.
Early turnover describes the termination of new employees within a short period after they are hired. Usually, this termination occurs during the probationary period or even before the first day of work. This type of employee turnover is particularly problematic as it often indicates fundamental problems in the recruitment and onboarding process.
The exact definition of early turnover varies, but typically includes the period from contract signing to the end of the probationary period. Many employees leave before their first day of work or within the first few weeks to months at the company. The reasons for this can be false expectations of the position, a lack of integration into the team or insufficient introduction to the corporate culture.
The frequency of early turnover is alarming: according to the Haufe Onboarding Study 2021, 36% of new employees quit before their first day at work, and a further 15% considered quitting on their first day. These figures highlight the need to implement effective onboarding processes in order to optimally support new employees from the outset and promote their long-term loyalty to the company.
If new employees leave the company shortly after being hired, this not only results in high costs, but also causes problems in the team and in work processes.
These problems highlight the need to optimize the onboarding process and ensure that new employees are well-integrated from the outset and supported by meaningful onboarding measures. Effective measures to reduce early turnover help to increase employee loyalty, strengthen the corporate culture, and ensure long-term success.
Worth knowing: A high early turnover rate is particularly problematic today. The increasing willingness of employees to change jobs and demographic change mean that more and more jobs are going unfilled.
You can use a simple formula to calculate the percentage of employees who leave the company shortly after being hired. All you need is the number of new hires who have left and the total number of new hires. It is important that both figures are from a specific period (e.g. a quarter or a financial year) so that the calculation is meaningful.
If your company has hired 20 new employees within 3 months and at the end of the probationary period 14 of these employees are still working for the company because 7 left early, then the calculation is 7/20*100= 35 %
This means that more than a third of the new employees have left the company within the probationary period or even before their first day at work. This clearly indicates that the causes of this early turnover should be urgently investigated.
Early turnover can be triggered by a variety of factors rooted in the hiring process as well as onboarding and company culture. The most common reasons are:
Companies can take targeted measures to reduce early turnover and ensure long-term employee retention by analyzing these factors in detail.
Early fluctuation is not only an organizational problem, but also leads to considerable costs that are often underestimated. These costs can be divided into direct and indirect costs.
By recognizing and specifically eliminating the causes of early turnover, companies can not only strengthen the loyalty of new employees, but also significantly reduce the associated costs.
If you are reading this article, you are probably familiar with the weaknesses of your onboarding process. Is your onboarding currently leading to many early departures in your company? If so, you’ll find proven tips in the following section to optimize your recruiting and strengthen employee retention.
A transparent and realistic recruitment process is the first step towards avoiding early turnover:
Prepare new employees optimally before their first day at work:
Structured and comprehensive onboarding is crucial for the integration of new employees, which is why the following elements can be useful:
Our tip: The onboarding process should go far beyond general company information and technical training. Position-specific onboarding is crucial to ensure that new employees know exactly what tasks to expect, what challenges to overcome and what strategies to apply successfully. This allows new team members to avoid potential mistakes and optimize decision-making processes through accumulated experience and best practices.
Social and cultural integration is just as important as professional training.
Provide ongoing support for new employees and offer development opportunities.
Digital tools make the induction process more efficient and quickly provide new employees with all the relevant information.
By implementing these measures and using suitable tools, companies can significantly reduce early turnover and at the same time strengthen the satisfaction and loyalty of new employees in the long term. A well-thought-out and well-structured onboarding program is therefore crucial for a successful start and long-term cooperation.
Support your employees with a digital platform
Our great2know platform makes it easier for you to seamlessly integrate new employees into all areas of the company. Whether it’s general onboarding, position-related knowledge transfer or our digital corporate memory – we offer you the tools to effectively support your team and give every new employee the best possible start.
Early turnover during onboarding is a severe problem that can cost companies dearly. It reduces productivity, causes high costs, and creates internal tensions. Therefore, targeted optimization of the onboarding process is essential.
By implementing transparent recruitment processes, structured pre-boarding measures and comprehensive onboarding programs, companies can significantly reduce early turnover. Particular attention should be paid to cultural and social integration as well as the continuous support and development of new employees. Invest in your new employees and lay a strong foundation for the future success of your company.