New Hires Leaving During Probation

Around 13% of all new hires in Australia leave before the end of their trial period, according to research from ELMO Software.

By Maggie Mancini

The current economic outlook is a top challenge for employers in both Australia and New Zealand, according to research from ELMO Software. The report finds that it now costs $20,000 to hire a new employee on average, with a time to fill of 18 days in Australia and 24 days in New Zealand. Further, about 13% of all new hires leave before the end of their probationary period, highlighting the need for organisations to improve engagement and retention.  

Considering uncertain economic conditions and ongoing talent challenges, organisations across Australia and New Zealand are looking to restructure their businesses, optimise their current workforce through upskilling and reskilling, and engage in high-priority hiring to help navigate the tight labour market.  

Productivity has also become a major focal point for organisations in Australia, where HR professionals say that lack of engagement, leadership capability, and prioritisation have exacerbated an existing productivity issue. The report suggests addressing engagement issues like change fatigue and burnout; being rigorous with performance management and prioritisation of goals; and ensuring adequate leadership capability to train and motivate new talent to help improve engagement and retention.  

With workers now more willing to switch jobs every few years, employees are spending more time onboarding and training for new roles, which can impede the productivity of managers and leaders. The report finds that 23% of Australian employees are actively searching for a new role with another company, and 41% of employees report feeling burnt out in the last three months of 2023.  

For HR professionals, the new hire turnover rate (about 14% in both Australia and New Zealand) is an important metric to watch, as the high number of new hires leaving before their probationary period ends can lead to questions about what caused those decisions. It’s vital for employers to bring this metric down to stretch their budgets further and improve retention.