When it comes to hiring, interviews are a two-way street, and this perspective is especially prevalent among Millennials and Gen Z who highly value their time and are more willing to leave a job with which they are dissatisfied.
Hiring and training new employees is an expensive business, made even more so when those new hires leave within a few months and the (often lengthy) process of finding, interviewing, hiring, and training someone else must be started all over again. The Society for Human Resource Management estimates the “hard” cost of a new hire is around $4,700 per person, but the “soft” cost can be up to three to four times the salary of the position when factoring in the cost of the time department heads, managers, and colleagues spend screening applications, participating in interviews, and training.[1] With such a serious price tag, it’s important to make sure that every new hire is the best fit for their role.
But what about the role being the best fit for that individual? It turns out that may be even more important. According to a poll conducted by The Muse, 72% of more than 2,500 respondents responded that they’ve experienced “shift shock”, or “that feeling when you start a new job and realize, with either surprise or regret, that the position or company is very different from what you were led to believe.”[2] Additionally, 48% of respondents would try to go back to the job they had just left, and while 41% would give the position two to eight months before leaving, an 80% majority felt it was appropriate and acceptable to leave before six months.
In order to prevent the feeling of “shift shock”, the old adage “honesty is the best policy” has proven to be the most effective tool that hiring managers and plan sponsors can use. Being upfront (if tactful) about expectations, scope, environment, and benefits all ensure that prospective employees know exactly what they’re walking into and are therefore less likely to be surprised in the first days, weeks, or even months in their new role. Explicit discussions about working hours (tout those flexible schedules, but be upfront about those long days at the end of every quarter), benefits like healthcare (let them know if you don’t offer dental or vision, or brag about those voluntary benefits like childcare and pet insurance!), and to whom benefits are offered.
Things like making sure that prospective part-time employees know whether or not they will be eligible to receive benefits (and which ones), and clarifying how much additional vacation time is accrued with how many years of tenure at your organization might tip the scale and be the reasons why some prospective employees choose not to join your organization. But those are employees who very well may have left anyway, including after they were hired and trained, meaning that their graceful departure during the interview process saves everyone time and money in the long run.
When it comes to hiring, interviews are a two-way street, and this perspective is especially prevalent among Millennials and Gen Z who highly value their time and are more willing to leave a job with which they are dissatisfied. They have learned from market trends that employees who are loyal to their company are under-compensated, while those who job-hop rise through the ranks faster and earn better pay and benefits.[3] Paired with a job market that still leans in favor of employees, it means that the risk of a poor hiring fit is more likely to impact the organization that hired them than the dissatisfied worker; another incentive to be forthright, and perhaps even sweeten the deal by offering top-of-the-line benefits that employees highly value.
[2] https://www.themuse.com/advice/shift-shock-muse-survey-2022
[3] https://money.yahoo.com/job-switchers-are-the-big-winners-202624616.html
These articles are prepared for general purposes and are not intended to provide advice or encourage specific behavior. Before taking any action, Advisors and Plan Sponsors should consult with their compliance, finance and legal teams.
Before leaping into the unknown, we recommend a thorough examination of your plan. Because we are experts in the field, we know the marketplace and know what your existing vendor is capable of offering. Through this examination, we can help you optimize the service you receive.
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