Successful Onboarding
Every day, companies undergoing large digital transformations are investing significant time and resources in recruiting new talent. They partner with talent acquisition firms who hunt for the perfect fit, engaging in exhaustive searches to ensure they present the best candidates for consideration. Despite concerted efforts, new research shows that once the offer is accepted, the countdown begins.
New data from BambooHR concluded that the clock may only tick for 44 days before a new hire decides to leave. In the same survey, data showed that 70% of new hires decide whether to stay with a company within the first month. Even more alarming is that 29% make up their minds within the very first week. This revelation is a stark reminder that the initial period after onboarding is crucial for employee retention. This poses a very important and expensive question many companies are asking - why are new hires bolting?
The Costly Problem
Losing new hires shortly after onboarding is an expensive issue. According to a study by Investopedia, it costs around $4,700 to hire a new employee (not accounting for the time and effort invested by hiring managers and interviewers). If you include additional hard costs such as recruitment fees and background checks, plus soft costs like new hire training and loss of productivity from an unfilled position - the expenses pile up.
It’s an avoidable issue whose solution lies in the onboarding process. Without one, companies can get trapped in a cycle of turnover, losing both profit and productivity. The first month shapes an employee’s sense of belonging within the organization and they decide whether the organization is the right fit, or if the grass will be greener elsewhere. One in 5 workers (20%) say their company has no process to help new employees make friends and find support among their coworkers. Strong relationships are not built on poor foundations. An organization needs to improve the employee onboarding experience if they want to improve new hire retention. Understanding the costly issue of new hire turnover, we have outlined the key elements of an onboarding process to ensure both retention and enhanced engagement.
Links to Onboarding Success
The goal of onboarding is to set new hires up for success and to decrease the time it takes to become acclimated in their new roles. This requires a strategically designed process with the end goal in mind.
1. Establish Goals and Ways to Measure Success
Before creating your onboarding program, set your onboarding goals. Have you clearly defined the responsibilities and expectations of the job to the candidate? After completing the program, will the employee have a clear understanding of the company’s culture and feel supported in the role? Once you have a set of goals, create ways to measure success. For example, request feedback about the onboarding experience from new hires or measure the percentage of new hires in the past year who are still employed at the company.
2. Involve Multiple Departments in the Process
An onboarding process that involves making introductions to other relevant business units, beyond HR, highly improves the employee experience. The sooner the new hire can meet the greater team, the better. Be sure everyone is aware of the new addition, and the role they will play. As a manager, it's important to facilitate networking opportunities within the organization to ensure connections are being made, creating a sense of belonging.
3. Provide Tools, Mentorship, and Ongoing Support
Equip the new employee with everything they need to hit the ground running. Be sure they have all of the equipment, system access, and best point of contacts for any challenges that may arise. Consider launching a mentorship program where the new hire is assigned to a veteran employee who can assist in navigating the new waters. Check in regularly to see what is working and what needs improvement, providing ongoing support throughout the journey.
A poor onboarding process leaves your employees questioning their decision and results in a higher risk of them running to a competitor. According to a study by the Globe Newswire, companies that implement a formal onboarding program could see a 50% greater employee retention among new recruits and 62% greater productivity within the same group. By implementing a strategic program, companies can create a better employee experience, increase engagement, and retain talent through a strong company culture.