Dilemma of recruiting a fresher: Points companies always forget when recruiting freshers

Ask any HR Manager of an 800+ headcount company or any VP of a company as to what his nightmare has been one standard response would be retaining freshers of the company.

One must distinguish fresher here are of two categories, ETs and MTs i.e. Engineering trainees and Management Trainees. The strategy and the cost of these two categories might be different but the root cause for them leaving the company is same nevertheless. Will discuss on that later.

It has been seen on average that somewhere around 50% of the fresh talents tend to leave the company and move on, as quick as within 18 months of joining. That is the stats for Indian companies, for foreign countries I am told the rate of people leaving is even more.

When one considers the investment put on fresher, cost spent to retain them, time spent on fresher HR managers get to think was it worth all the effort to recruit a fresher note that it has been mentioned that UK companies loose around GBP 350 mln every year just on fresh talents (Src: http://goo.gl/Hysr1)

This is not a small problem at all. I agree to have a better idea we must see both perspectives to get to the ground of the problem.

Just like any argument I agree it has both sides, but let me try to put some main points across on why freshers quit within 18 months:

1. Directionless-ness:

The companies show much enthusiasm in recruiting freshers, but all the fiesta ends with recruitment. Many of the employees recruited are left with managers who most of the time have no idea on what kind of job can be given to a fresher.

A good manager makes the company’s job easier to retain the talent

2. Motivation:

A fresher needs to have a sense of fulfillment when he gets into a company. But depts. invariably give a task like correcting total of big sheet, noting down Minutes etc. This makes him loose his urge to stay back in the company.

Companies assume salary is the decider but that’s just half the case. Giving him right set of task is the actual challenge.

3. Peer Pressure:

One major challenge is there are few companies especially bigger ones where fresher is not given any crucial tasks, but his classmate in other companies (relatively smaller) assign him critical tasks, which makes the person A to feel ignored in his company.

4. Offers when completing one year:

This is the point where most of the company gets it wrong.

It is the cue which every HR manager misses out. There are lots of companies out there who do not take chances with fresh grads, but everyone in the market is looking out for a 1+ year exp person. That being the case a resource that the recruiting company still sees as a fresher is a potential candidate for someone else. The employee normally who is 50-50 about looking out starts getting calls when he completes 12-15 months. He feels proud of having been able to prove his worth to the company which still treats him as a fresher. He surely chooses the one he feels values him more.

Companies out to change its manner in which it treats a one year old.

5. Distinction between Engineering trainees and Management trainees:

Companies get this one wrong too. Companies hire engineers and try to get them management roles, and vice versa. This produced a confused team of freshers.

E.g. Companies ask an engineering grad to play a role of Asst. Project Lead / Business Analyst. For a grad looking for programming and excelling in coding. These kinds of roles hardly interest him. (Though I must say there are lots of people who get thro this and excel in their job, but let us not take exceptions as examples).

Alternately, there are companies who hire Tier 2 MBA grads (especially in India) and give them operational jobs like programming, Monitoring calls, Quality testing etc. These are again an insult to injury already faced by him.

Conclusion:

I have been in roles mentioned above: as a fresher, as first year dude, as a mentor to a fresher and as a manager to a fresher. One thing that has stuck me always is:

One must understand that recruiting is more of a marketing function than analysis function. Recruiting a fresher is like Marketing to a customer new to the market and retaining him is like retaining a new customer. It takes a good deal to understand his needs, mentoring them, and making them realize their importance in the organization.

Remember the marketing rules, ensuring the new customer is happy will make sure he remains loyal to brand for a long time. Likewise ensure the fresher is happy in the few initial years he will remain loyal to the company and will one day become a great asset to the company.