Statistics Every Hiring Manager Should Know
Job candidates aren’t usually as hard to attract as they are to retain. When looking at your candidate pool, like most HR professionals, you’ve probably considered the differences in attracting age groups, education, etc. However, you may not expect how differently each type of job candidate or new hire may respond to your hiring tactics. Here are a few statistics to know, taken from Empxtrack.com:
- 79% employers believe that their employees have a significant retention and engagement problem.
- 57% of organizations view employee retention as a problem.
- 69% of Millennial would rather make $50K a year at a job they love than $75K a year at a job they think is boring.
- Companies who have formalized employee engagement programs have 26% higher annual revenue growth than those who don’t have formalized engagement programs.
- Employee disengagement costs more than $500 billion per year to the U.S. economy.
- Over 1/4th of employees are in a high-retention-risk category, and many are top performers or high potentials and possess critical skills.
- More than 70% of high-retention-risk employees say they have to leave their organization in order to advance their careers.
On Recruitment And Hiring:
- 22% of new hires leave their jobs within 45 days of being hired. Reasons include poor performance and temperament issues.
- Retaining new hires is another big concern for hiring managers. Fully 46% of new hires fail and are let go from their jobs within 18 months of being hired. Only 11% of these are for lack of skill, while 89% are for attitudinal reasons like motivation and lack of coachability.
- New hires that undergo a structured on-boarding program are 58% more likely to be with the company after three years.
- Though the number of American online job seekers has doubled since 2005, yet finding candidates with suitable skills still remain a bigger challenge for recruiters.
- 59% of job-seekers used social media to research a company’s culture before applying.
- The use of social media for recruitment has grown 54% in the past 5 years.
- 75% of hiring and talent managers use either applicant tracking or recruiting software to improve their hiring process.
On Performance Reviews and Feedback:
- 1 out of 5 employees think their bosses don’t even think about the appraisal until they are in the room.
- 30% of performance reviews end up in decreased employee performance.
- One in five employees are not confident their manager will provide regular, constructive feedback.
- A poll with 2,677 respondents revealed that 98% find annual performance reviews unnecessary. Among the respondents were 645 HR managers, 232 CEOs, and 1,800 other employees.
- Only 8% of companies believe their performance management process is highly effective in driving business value, while 58% say it’s not an effective use of time.
- 78% of employees said being recognized motivates them in their job.
- Companies that implement regular employee feedback have turnover rates that are 14.9% lower than for employees who receive no feedback.