This is a guest post from Complí, a Hireology partner that manages HR and compliance initiatives across the entire workforce.
Your employee onboarding process has a real financial impact on employers. Turnover, culture, and compliance are all greatly affected by how well you onboard your new employees.
Imagine what your company could accomplish if you were certain your new hires felt completely prepared and settled in due to effective onboarding, before embarking on that next sales goal, market expansion, or another big organizational initiative.
You’d have fewer preventable mistakes. You’d treat your customers better. Employee engagement would increase, empowering your team to be more focused on the opportunities ahead, rather than on finding their bearings. You could quickly change course without throwing everyone off.
And perhaps most important, fewer people would jump ship. Why? Because you’re less likely to abandon an employer when you believe in their leadership ability right from the start with effective employee onboarding; when you’re confident they’re taking you where you want to go — and they know the way there.
The cost of a poor onboarding experience is greater than you may realize. Here’s what you lose when new hires feel unprepared. And if you’re looking to understand more about why onboarding is not simply a nice-to-have, read this post about the 8 reasons onboarding is a game-changer.
The real cost of poor onboarding
Hiring and retaining talent has only become more difficult throughout the pandemic, so ensuring your company is on your A game is all the more crucial. Consider the following realities around onboarding and the costs associated with finding and retaining new hires:
- It takes an average of about 8 months for a new employee to start producing at their maximum capacity.
- Approximately one-third (33%) of new hires look for a new job within the first six months.
- To replace an employee, an employer will need to spend an average of 16–20% of that employee’s salary.
- The total cost of turnover per employee typically ranges from 100–300% of the individual’s salary.
How to keep your best employees around
Now, look at a few statistics about companies that take measures to prevent new hires from jumping ship:
- 69% of employees who undergo effective onboarding are more likely to stay with an employer for at least 3 years, and 58% are more likely to stay on for more than 3 years.
- Organizations that invest in an effective onboarding program retain 50% more of new hires than their competitors do.
- The most successful companies are 35% more likely to initiate onboarding for a new hire before that person’s first day on the job. These companies are also more than twice as likely to check on their new hires’ progress during onboarding.
- A standardized employee onboarding process leads to 50% greater productivity than non-standardized onboarding.
What do these companies do differently, and what does effective onboarding look like?
They’ve created a standardized, automated onboarding program to steer their companies in the right direction by improving employee retention and engagement. They implement the 5 C’s — compliance, clarification, culture, connection, and check back; and they anticipate what their new hires need in terms of training and paperwork, how to communicate the big picture of their organization’s mission through leadership.
If you’re ready to upgrade your onboarding system to a standardized, effective process that prepares your employees for what’s ahead, we’d love to help. Schedule a demo today to see what Hireology can do for your organization.
Complí provides a cloud-based solution that manages HR and compliance programs across your workforce. Automate learning and compliance business processes in one easy-to-use system for your employees and your managers. Deliver defensible proof of compliance to your auditors and executives to keep cool, calm, and compliant.
The Hireology and Compligo platforms are now integrated and work together to help businesses manage workforce programs across the entire employee lifecycle. Through the integration, customers can easily find the best candidates, efficiently complete hiring & onboarding processes, and keep employees on track with ongoing regulatory and compliance requirements.