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New hires are considering quitting within the first 6 months because of these 3 onboarding issues

By
Paige McGlauflin
Paige McGlauflin
and
Joey Abrams
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October 25, 2023, 9:00 AM ET
Illustration of 11 people walking through a large, dark room towards the exit door.
The allure of a new job is waning earlier for new hires.mathisworks—Getty Images

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The honeymoon phase of a new job is getting shorter and shorter. Just 38% of new employees who have worked at a company for less than six months plan to stay at their organization for three or more years, according to a recent report from Qualtrics. That percentage is slightly smaller for frontline workers, 34% of whom say the same.

According to the report, 65% of new hires say they’re highly engaged with their job, a 1% decrease from the year prior, compared to 68% of longer-tenured employees. Sixty-six percent of new hires say they feel included at their company, a 4% drop from the year prior, compared to 73% of all other employees.

In the past, the employee experience looked like a U-shaped curve, where new and long-tenured employees both had more positive experiences and engagement than other workers.

“This year, we saw a pretty dramatic departure from that,” says Qualtrics’ chief workplace psychologist Benjamin Granger. “Instead of seeing a U-shaped relationship, we saw more of a hockey stick, where the new hire attitudes were lower than the overall average, which is not something we had seen before.”

While Granger says his team hasn’t definitively pinpointed why new employees are becoming so quickly jaded, he’s identified two hypotheses that most strongly explain the trend. First, as employers raised salaries to keep up with competitive wages, workers accepted new jobs offering higher pay or more lucrative benefits, only to discover they didn’t like the role attached to the salary. 

The second hypothesis is that organizations are spending far less time onboarding employees than on talent recruitment. By their own account, HR leaders have deprioritized the onboarding experience. While 50% of people executives say talent attraction and hiring are a top priority, just 41% say the same for onboarding, according to a separate Qualtrics survey of HR executives.

Other data points echo a similar sentiment. Recent insights from Korn Ferry found that employees who left within the first six to twelve months cited feeling out of sync with the company’s culture or mission, didn’t understand their impact, and discovered their responsibilities were not as advertised.

It’s imperative that HR and talent management teams treat the hiring and onboarding process as sister experiences, ensuring that whatever red-carpet treatment candidates receive in the recruiting process continues once they become employees. Managers should also be familiar with the organization’s onboarding process.

“It’s frequently surprising how often we run into large organizations that don’t have an ongoing dialogue between those two groups,” says Granger. “A really simple starting point is making sure that the teams responsible for new hire onboarding, especially for high-volume roles, thread messaging that [new employees] hear before they even apply.”

Paige McGlauflin
paige.mcglauflin@fortune.com
@paidion

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Around the Table

A round-up of the most important HR headlines.

- Some employers in the U.K. still provide pandemic-era “well-being days,” which allow employees to take time off to pursue activities that support their physical or mental health. Financial Times

- Roughly 4% of companies that offer sick leave, including Microsoft and Abercrombie & Fitch, now offer menopause-related benefits to keep women from leaving the workforce. Bloomberg

- Spain’s acting government announced plans to instate a 37 ½ -hour work week by 2025 if it remains in power. AP

- Intuit is hiring human content moderators to prevent toxic language from infiltrating its AI models. Wall Street Journal

Watercooler

Everything you need to know from Fortune.

Hilton sits tall. Hotel operator Hilton topped Fortune’s 100 Best Large Workplaces for Women ranking for the fifth consecutive year. —Fortune Editors

Building interest. The CEO of PE firm Blackstone, the world’s largest commercial property owner, believes remote workers “didn’t work as hard” as in-person workers during the pandemic. Yet he predicts more companies will offload now-vacant office space. —Paolo Confino

Solidarity shut-down. The prime minister of Iceland joined 45 different unions in the country Tuesday for a one-day strike for wage parity, among other demands. —Ragnhildur Sigurdardottir, Bloomberg

This is the web version of CHRO Daily, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.

About the Authors
By Paige McGlauflin
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Joey Abrams
By Joey AbramsAssociate Production Editor

Joey Abrams is the associate production editor at Fortune.

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