With the tightness of the IT Job market, the cost of a loss of a new hire is something that is way too expensive. For the past 12 months, the average number of job openings that have not been filled is over 204,000 and growing. At the same time, the number of positions filled is only 106,000.
The mean compensation for IT Pros, according to the Janco 2022 Mid-Year Salary Survey, is well over $97,000. The cost to hire a new employee is at least one-half of the salary for the position when you include the cost of advertising, recruiting staff, recruiting fees, lost opportunity cost for a position that is not filled, and training/orientation time for the new hire. High attrition rates among new hires are more costly since they typically are not able to provide value at the same rate as long-term employees.
Why New Hires Fail
Janco has analyzed the exit interviews of 285 IT functions covering 1,203 employees. Of that number 543 or 45% were employed for 24 months or less. Each of these was considered a hiring failure.
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