An article published in the Harvard Business Review reported that almost 33% of new hires start searching for a new job within six months and 23% of new employees leave their job within the first year. The article suggests that using the wrong technology and the failure to create a coherent onboarding process can leave new employees feeling frustrated. Unfortunately, research has found that 22% of survey participants had no formal onboarding program.
Additionally, where businesses did have an onboarding program, only 28% stated that it was highly successful. Given the importance of onboarding about the retention of quality employees and costs savings, it’s critical for business owners to understand what onboarding is and its importance to their organization.
What to Include in Your Onboarding Program?
As part of their onboarding of new employees, most companies include things like:
· Office tours
· Benefits & payroll information
· Policies and procedures
· Meeting the staff.
· Software training
Importance of Onboarding for New Hires/Employees
1. Reduced Employee Turnover
It’s estimated that replacing an employee in a managerial position can cost an average of six to nine months’ salary. The Bureau of Labor Statistics reported that people typically have nearly 12 jobs between the ages of 18 to 50. This demonstrates that employees won’t hang around if they aren’t happy at work. Consequently, employers need to do all that they can to retain good employees.
The Harvard Business Review report entitled The Impact of Employee Engagement on Performance found that 71% of respondents believed “employee engagement is very important to achieving overall organizational success.” Onboarding provides businesses with the opportunity to help employees to become engaged in the business culture.
2. Increased productivity
Employee onboarding results in 54% greater productivity because new hires are able to learn from existing employees and master their roles at a quicker rate. US and UK businesses spend around $37 billion every year on employees who are unproductive because they don’t understand their jobs.
The length of the onboarding process determines the level of an employee’s productivity. It’s common for businesses to spend about two months on employee onboarding. However, staffing and HR experts advise that employee onboarding should last at least one year to avoid employee turnover.
3. Employee Onboarding Can Help Build Confidence
Starting a new job is difficult. Many times, a new role does not meet the job description entirely. And more than often, employees don’t know a single soul in the new organization.
4. An Effective Onboarding Reduces the Learning Curve for An Employee
Simply handing over a manual or running them through a deck on the first day is not practical. The more comprehensive the training, the better the time-to-value for new hires.
How to Create an Onboarding Process for New Hires
1. Set your expectations straight from the beginning
Even before the person sets foot into the office, they should already have been informed about first day/week logistics. Send them an email with all the information they need to know: what to bring, how to enter the building, etc.
2. Do the introductions
It is important to make time for a short round of introductions to make sure that your new employee has a smooth landing. Being the new guy is hard enough even when you don’t have to introduce yourself to the entire team.
3. Let them know about the company culture
Make sure that the new employee knows the company’s values and purpose. Also, present any workplace routines that impact the general flow: Do you have weekly meetings? Do you gather together once a month for drinks and talks? Do you celebrate birthdays at the office? All these are important things that belong to the specific culture of your company, and as a new member of your team, they should know what they’re getting into.
4. Give them a tour
Of course, if, you are a busy CEO you don’t really have to do all these yourself, but it’s your responsibility to make sure that *someone* does it. So, the new employee should be shown around by someone and informed about the office routines.
5. Present the technology
The newcomer might be an expert in their field, but if you’re using technologies, they’re not familiar with, they should get trained before starting their work.
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