Onboarding of new employees is a practice that most companies are familiar with. Let’s face it, hiring new employees is just a part of running a business, as is employee turnover. So, how important is the onboarding process to keeping new employees? As Jack talks about in his webinar, nearly 1 in 3 new employees will leave a company within the first six months. Why is this a problem? There are always new employees that are eager to take up the positions.
Well, onboarding is expensive. Amber Hyatt, the director of product marketing at SilkRoad Management stated in an interview with Roy Maurer at SHRM Jobs that onboarding can cost as much as a two-year salary. Besides the cost in dollars, culture, morale, and productivity suffer.
And what is it about onboarding that makes it so important and costly? Traditional onboarding consists of new hire paperwork and usually stops there. However, companies are missing the boat when it comes to the opportunity that onboarding provides. Onboarding gives companies a chance to make their new hires comfortable and productive from day 1. So, what makes onboarding effective?
First, let’s talk about why employees stay with a company. According to an article by Entrepreneur, employees who stay with a company feel engaged in the position, comfortable with their responsibilities and role, and feel valued by the company. Effective onboarding can give new employees all of this through an ongoing process.
Most onboarding only lasts between one day and up to one week. Effective onboarding however should last up to a year. This is in the form of on-the-job training and professional development. Before the employee starts on their first day, they have already filled out the paperwork, had access to the new employee handbook, and even spoken with their new manager. Information such as where they report to on their first day and what to wear is also important according to Roy Maurer. On day 1, the employee receives basic training for the position and gets to know their teammates. Within the next month, most of the new employee training should be completed. At the one-year mark, employees can be reviewed, and more career development opportunities can be discussed.
When an employee is not engaged in a role, they will seek engagement elsewhere. During the onboarding process, on the job training is common. Shouldn’t that training be fun? Training through play is a growing trend in new hire onboarding. By participating in a gamified training, new employees stay focused and gain information quicker. Using this information in a real-world scenario builds productivity and gets them to work much faster. Time is money, after all.
Lays out clear roles and responsibilities:
When a new hire has a clear understanding of what their role is, they fall into the team quickly and effectively. Employees feel more comfortable with their co-workers and work more productively.
Onboarding is a long and expensive part of any business. Therefore, keeping your employees longer saves a company more money long term. If an employee goes through an effective onboarding process, they are much more likely to stay long term.