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Short-Term New Hire Performance More Valuable Than Retention


Thu Apr 26 2012


(From Chief Learning Officer) -- New professional and managerial level employees face a make-or-break “race for impact” as businesses demand more from staff during the tough economic climate, according to a global study from recruitment services firm Futurestep.

The good performance of a new employee at this level is three times more valuable than retention. And 76 percent of those surveyed now measure the impact of new recruits within their first year.


The inaugural “Futurestep Global Talent Impact Study 2012: Understanding the Race for Impact” surveyed more than 1,500 HR professionals across five continents and examined their views of the impact of professional and managerial talent and how they measure it.

Only five percent of respondents believe that an employee at this level has the greatest positive impact after three years, reinforcing the short-term focus of businesses.

Futurestep found that the most successful new professional and managerial hires demonstrate three “golden keys to success”:

  • Decision quality — makes accurate and good decisions.

  • Action oriented — is quick to take initiative.

  • Customer focus — is dedicated to meeting customers' needs and expectations.

But businesses' focus on the short term means many organizations risk overlooking the valuable contributions this employee group makes over the longer term. Despite three quarters of them measuring performance in the first year, more than 36 percent of respondents admit employees make the greatest impact after year one when they are actively contributing to the team and understand their organization's culture and the over-arching business environment.

Read more.


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