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Seb Anthony

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Induction retention figures


I am currently writing a cost benefit case for a brand new Induction programme for new employees. As part of this I need to show the savings that retaining staff will create.
Andy Rice

6 Responses

  1. Induction

    You can build in the cost of recruitment ie that it takes on average 1.5x an employees salary to replace them.

    There is also the cost of time as well which recruitment takes up.

    Sandra Beale FCIPD

  2. Bigger issue?
    I think you may have put the cart before the horse here.
    In order to prove that the induction programme has a significant effect on retention one needs to be doing exit interviews to ascertain the reason for attrition. Generally speaking this is down to mudane work, poor management culture, unrealistic targets, lack of promotion, poor pay, poor environment. The quality of the induction isnt usually the make or break issue.
    It may create a good initial impression but that soon wears off and other more pragmatic factors affect staff decisions.

  3. Retention statistics
    You may find some useful statistics to support your case in the CIPD Recruitment and Retention survey, which does mention the quality of induction as a factor in retention, and is available to non-CIPD members.


  4. Key steps to building an induction business case

    I suggest that you pick a couple of key measures in building your business case for the design of a new induction. The simpler the better.

    Without knowing about your business, it is difficult to advise, but for most businesses this would include staff attrition and customer satisfaction because both are easily measurable.

    In call centres for example you can use an average cost of £5,000 per person for recruitment and training.

    This assumes that induction lasts about 3 or 4 weeks including training and one to one support.

    A smart induction might reduce staff attrition by half.

    Customer satisfaction can be measured by listening to calls when new starters finish training and start taking calls. This can be compared with the ratings for more experienced staff.

    A smart induction should aim for new starters to at least match the customer satisfaction ratings of experienced staff.

    I have written an article on the subject, called “The Benefits of Running Great Induction”. Please email me if you would like a copy.

    My address is [email protected]

  5. The direct cost of staff turnover
    Dear Andy

    On average it costs £15,000 to replace or add an employee. Yet across the UK, 26% of all new employees leave during the first month.

    The most common reason given is poor or no training. -We all like to feel valued and to have a sense of belonging.

    You will find some further potentially useful data at:



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