“Recession looming!” “Markets tumbling!” “Fears growing!”
Current headlines appear to be signaling—if not outright summoning—the next global financial downturn. While everyone worries about a potential economic crisis, however, many people are ignoring the one we’re already experiencing. Workers are leaving jobs at high rates, costing employers countless sums in terms of squandered recruitment, hiring, and onboarding spend.
Consider the following, from our recent blog series:
- It takes an average of about 8 months for a new employee to start producing at their maximum capacity.
- Approximately 33% of new hires look for a new job within the first 6 months, and about 25% leave before a year on the job.
- The total cost of turnover per employee typically ranges from 100–300% of the individual’s salary.
The reason for all this turnover? It’s not just the strong job market. Most of the time, new hires don’t leave their jobs for better opportunities, but because of conflicts with their bosses. And here’s how turnover has transformed into a full-blown crisis: those bosses leave way more often than their subordinates.
Studies show that a staggering 50–70% of newly hired managers and executives fail at their new jobs and exit within 18 months.
It’s easy to see how this can become a self-perpetuating cycle. A company brings on new managers to replace the old ones. Strapped for time and resources, the company rushes through manager training and development. As a result, managers lack the skills and information they need to succeed in their roles and wind up in conflicts with employees. Those conflicts cause one or both parties to leave, and the cycle begins anew.
No one company can reverse this crisis, but you can insulate your organization from it. The key is systematic, technology-supported manager training and development. Follow the right steps and you’ll create better bosses with the skills and wherewithal to not only stay at their jobs, but engage, motivate, and retain their team members. And—who knows?—maybe a few good managers might come in handy during an economic downturn. Just saying.