What is the importance of a proper employee onboarding program? The answer is simple – because turnover is expensive. The cost of replacing an entry-level employee is 30-50 percent of the person’s annual salary and for mid and senior-level employees it can reach 150 – 400 percent respectively.
With every employee exit, morale and productivity suffers and this is why it is vital for organizations to retain their people. This can start by providing a well-designed onboarding process to educate new employees about their place, within the larger culture.
Employee onboarding is a strategic process of bringing new employees into the organisation and providing information, training, mentoring and coaching throughout their transition. This process begins at the acceptance of an offer and throughout the first 6 to 12 months of employment. Onboarding is a performance-based, customized approach.
A superb onboarding process that lasts more than one day or that begins even before the first day with engagement and information can do just that. If we rely on a single-day HR orientation, a series of unrelated administrative tasks, and a folder of forms, it just won’t work. Especially with the Millennial generation who expect speed and automation.
“Onboarding is the perfect opportunity to make a positive, lasting impression on a new hire,” says Ben Eubanks, a blogger at UpstartHR. It really is the honeymoon phase for new employees. New employees learn what’s expected, how to deliver, and how and when they will be evaluated.
In many industries, organisations lose as many as 15 percent of employees per year, due to incorrect onboarding and which is why this is very expensive. Strong onboarding programs ensure new and existing employees, that they are valued and have all the necessary tools to succeed. It demonstrates in tangible ways that the organization truly cares about its employees, and makes it far less likely that they will look elsewhere.
By telling the new hires what they need to know before they need to know it, proper onboarding reduces the negative affect that naturally occurs, when entering a new situation and makes it possible for new hires to concentrate on their jobs.
Goals of the onboarding process:
83% of the highest performing organisations in one study, began onboarding before the new joinee’s first day. A 2007 study by the Wynhurst Group states that, when employees go through structured onboarding, they are 58% more likely to remain with the organization after three years.
According to a CareerBuilder report, 60% employees feel that skills can be learned on the job, but 49% employers feel that training is an equal responsibility of employees and employers.
Few best onboarding practices for organizations are:
With economy on the upswing, many emerging companies are looking for talented new employees. This means a lot of first days on the job, and a lot of time and money to spend,while new staffers get up to speed. That’s the promise of a growing trend in human resource management called onboarding. And the ultimate payoff is to reduce turnover and encourage workers to stay with an organization for longer periods of time.
Proper onboarding isn’t just about first impressions. Taking out time to plan about how new hires will be introduced into the company will affect their future performance, their ability to achieve pre determined goals and their overall satisfaction with the new roles. It’s all about calculating the cost of hiring new workers to the business.
Dr Ritika Srivastava is a freelance content writer and an Organisational Psychologist. She is also trained in CBT and REBT with proven years of experience in rendering counseling. She also owns an Online Psychological Counseling website: www.positiveself.in