5 Things You May Forget When Hiring New Employees

5 Things You May Forget When Hiring New Employees

If you’re an employer, you may have interviewed candidates who entered the conference room visibly nervous and eager to make a good impression. Once they’re hired, though, the tables turn. Now, you are in the hot seat, because your new employee is evaluating you. It’s your turn to make a good impression, by meeting their financial wellness needs.

The harsh reality is that unless you give them incentive to stay, such as financial wellness benefits, those new hires will look elsewhere. After all, people change jobs frequently, with the average worker holding 12.3 jobs between ages eighteen and fifty-two.[1] If you want to retain qualified and valuable employees, you must remember these five things about your newest hires:

1) Your new employee doesn’t know the company.

For you, expectations, company culture, and work processes are familiar. For new employees, everything is new. During onboarding, focus on clear communication of expectations, positive mentorship, and feedback; also be sure to explain the benefits you offer. Companies with robust onboarding procedures can boost worker retention by 82 percent.[2]

2) Your employee is deciding whether to leave.

Yes, they just got the job, but 20 percent of new workers leave their jobs in the first forty-five days.[3] You’re on probation. How much are you doing to make sure your employee stays?

Fail to do enough, and you’ll pay, because the average cost of an entry-level hire is $740.63, and the average cost of hiring a contributor above entry level is $1,062.72.[4] If you lose workers, you lose money.

3) Taking this job may have put your new employee in financial peril.

Many workers switch jobs because they want to improve their financial wellness, but ironically they may have to spend money—buy an interview suit, access transportation—just to get the job. At the same time, they may also experience a gap in earnings in the period between their last day on the old job and the first paycheck at your company.  

4) Your payroll may be making new employees wait.

If an employee joins partway through a pay period, the payroll system may effectively hold that first paycheck until they have completed a full pay period, making the gap in earnings even worse.

5) Your benefits are mission critical.

Workers rely on benefits. Medical and other benefits at their jobs can make the difference between meeting obligations on time each month and living a precarious paycheck-to-paycheck existence. If you can help improve workers’ financial wellness, you’ll improve their quality of life, too.

To successfully pass your probation period with new employees, it’s vital to offer benefits like PayActiv that help your workers improve their financial wellness.

One survey revealed that 81 percent of workers would stay with an employer because of the PayActiv benefit.[5] Why wouldn’t they? From the PayActiv dashboard, workers can get Earned Wage Access before payday, arrange Uber rides, seek financial counseling, use budgeting tools, start saving, and more.

The bottom line:

When you hire an employee, you’re the one evaluating them. Once they’re on the job, though, they’re evaluating you, deciding whether to stay at your company. Remember these five things, and you’ll avoid having to start the recruitment process all over again.

[1] US Department of Labor, “Number of Jobs, Labor Market Experience, and Earnings Growth:

Results from a National Longitudinal Survey,” news release no. USDL-19-1520, August 22, 2019, https://www.bls.gov/news.release/pdf/nlsoy.pdf.

[2] Madeline Laurano, The True Cost of a Bad Hire, Brandon Hall Group, August 2015, https://b2b-assets.glassdoor.com/the-true-cost-of-a-bad-hire.pdf.

[3] Lauren Pope, “50 Onboarding Statistics to Improve the Employee Experience,” Learning Hub, May 21, 2019, https://learn.g2.com/onboarding-statistics#:~:text=47%25%20of%20companies%20say%20their,45%20days%20on%20the%20job.

[4] Laurano, The True Cost of a Bad Hire.

[5] “81% Users Will Stay with Their Employer Because of the PayActiv Benefit,” PayActiv, October 2, 2019, https://www.payactiv.com/press/81-users-will-stay-with-their-employer-because-of-the-payactiv-benefit/.  

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