The 90-day rule: Securing employees early is key to long-term retention

High employee turnover has grown to characterize much of today’s business landscape, spawning a rising consensus amongst American employers that the first 90 days of employment are crucial to securing long-term employee retention. In fact, 33% of surveyed American employees quit their jobs within these critical three months.

In a period marked by a tight labor market, high inflation, and economic volatility, employers will need to hone their retention strategies if they wish to hang on to top talent for long-term growth strategies.

This endeavor may be best approached by redefining employee benefits.

By focusing on early retention, streamlining the onboarding process for employees, and expanding benefits offerings beyond traditional means of compensation, companies can make their workers feel taken care of, thereby increasing the likelihood that they will stay at their jobs, especially during a period of economic uncertainty.

Engaging early and often

We often think that making a good first impression is incumbent on the interviewee, but in reality, it goes both ways. As the saying goes, “you only get one chance to make a good first impression,” and these days, companies are increasingly aware of the consequences for not returning the favor.

Behind the Great Resignation lies an increasing propensity for workers to quit if they feel even the least bit unsatisfied. Feelings of dissatisfaction at a new job, however, are nothing new, especially for the millennial and Gen Z workforce: a recent survey found a staggering 72% of them felt surprised or regretful when a new role didn’t align with their expectations.

Knowing whether you’ll like a job before actually starting is oftentimes a headscratcher. But younger generation employees are notably quick to pull the trigger when deciding to quit or change workplaces, so it’s key for companies seeking to improve retention rates to appease their sensibilities early-on.

Digitized onboarding  

New employees are largely unimpressed with standard company onboarding as it’s often bogged down by complicated paper pushing such as completing tax and health insurance forms. Not only is this time consuming, but it’s also depersonalized, giving new hires the feeling that they are not personally valued.

An enrollment process should therefore better engage employees with the company, putting them on a faster track towards financial success. Decision support is one example of how technology can help simplify those first few bewildering days of onboarding. A streamlined benefits enrollment process can eliminate anxiety for workers and employers alike, but most importantly, it makes employees feel that their wellbeing matters.

Businesses need to recognize that they cannot solely rely on tangible benefits and compensation to retain their workers long term: they need to bolster employee experience (EX) as well right from the get-go. HR teams are already leveraging decision intelligence tools for hiring, yet these solutions could easily be implemented to improve EX from that point as well.

Benefits expansion

Companies must think beyond traditional offerings like health insurance, retirement planning, and paid time off when it comes to benefits packages. Extending support to areas like mental health, tangible debt relief, and transport stipends – among others – can go a long way towards establishing a sense of belonging amongst new hires.

The lingering effects of the pandemic are reinforcing this perception and are driving employers to adapt their benefits offerings accordingly. According to a Care.com survey, 98% of human resource leaders and executive-level managers are preparing to offer either new benefits or expand existing ones. Telemedicine offerings, for instance, are becoming particularly popular perks in the wake of the pandemic, which has helped bring into focus the benefits of remote care.

There is no one-size-fits-all solution for employee benefits. The key is to offer specialized solutions tailored to an individual’s unique lifestyle. Perks like parental leave, for example, would be more attractive to employees starting a family, whereas younger generation workers would probably be more receptive to an employer’s involvement in helping to alleviate their student debt.

Securing a future

The fragile state of the economy has certainly put companies in a bind. Rising inflation is placing greater pressure on businesses to cut back expenditure at a time when employees more than ever need practical subsidies from their employers.

However, those that manage to attract and keep talented workers are also the likeliest to edge out the competition. If done properly and within budget, early focused retention policies like benefits expansion and digitized onboarding are a key solution to this challenge and a win-win for workers and management alike.

Sina Chehrazi is Co-Founder and CEO of Nayya, a leading insurance benefits experience platform.