New Hire Turnover Kaizen Event


A revised new employee orientation process was rolled out within three months of a Kaizen event, increasing employee satisfaction scores by 20%, saving $10,000 per new hire, and saving the company $500,000 annually.


After Black & Veatch Corp. (a global engineering, consulting and construction company) underwent an extended period of growth and hiring, human resources (HR) leaders knew that new hires were not being successfully integrated: More than half of all employees had been with the company five years or less, and the voluntary turnover rate for new hires was above historical levels.

Several modifications to the new employee orientation (NEO) program had been made in recent years, but the results were disappointing.

A revised NEO process was rolled out within three months of the Kaizen event, beating the initial project deadline by two months.

In addition:

  • After three months of the new NEO process, scores for new hire satisfaction with the process were already 10 percent to 20 percent higher than scores for the baseline period.
  • Based on direct recruiting and hiring costs, the company can save approximately $10,000 for each employee it retains.
  • Based on recent hiring trends, direct savings from reducing the first-year voluntary turnover from 29 percent to 25 percent are projected to approach $500,000.
  • Considering indirect costs associated with turnover could drive savings even higher.


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