Somewhat like performance reviews, a ‘new employee onboarding process’ is often viewed as just a compliance task that has to be endured when new starters join your organisation. The truth is it’s a fundamental engagement point. Any new team member’s first few days, weeks, or months will shape how they get started, their long-term performance, and critically this time massively determines whether they choose to stay or leave your team.
Onboarding is therefore so much more than just an admin task, and if designed strategically, your onboarding process has the power to make a serious impact upon organisational success.
22% of employee turnover happens in the first 45 days of employment.
40% of turnover happens in the first year of employment.
4% of new employees will leave a job if they have a disastrous first day.
One in five employees leave an organisation before completing their onboarding period.
Research from multiple sources has shown again and again that an employee’s first impression and initial experience in an organisation can make or break their chances of both short and long-term success. If large proportions of your workforce are leaving in the first year, this will become an expensive problem. Not only does staff turnover incur significant costs, but when employees leave this early it is likely that they never actually reached a point where they were generating returns for the business.
15% of employees have left a role due to a poor onboarding experience.
69% of employees would be more likely to stay in an organisation for three years after having a good onboarding experience.
People may choose to leave within the first year or less for a range of reasons but the onboarding experience itself can also cause people to leave if it is poor enough. Establishing a consistent onboarding processes, asking for regular feedback and using system automation to minimise manual steps and achieve consistent delivery will help generate a positive employee onboarding experience, which can be easily optimised. This type of continually improving approach will ensure your people have everything they need to succeed in their new role.
Effective onboarding can increase discretionary effort by 20%.
Companies with consistent onboarding see a 50% increase in productivity for new starters.
54% of organisations with robust onboarding processes report higher employee engagement.
Not only does a good onboarding experience make new starters want to stay, it also increases discretionary effort and productivity. This can be attributed to a robust onboarding process contributing the right resources and training that new starters need, as well as delivering the right tasks at the right time so new starters can slowly build up their skills and competency over time. Naturally, employee engagement also sees an uplift as new staff are feeling recognised and rewarded for their achievements.
To aid this, goal setting should be a priority for every new starter to ensure they are aligned with organisational objectives and have clear expectations to meet. The key here is delivering tasks that are stimulating enough to engage them, but also realistic enough that a new hire has the chance to enjoy early successes building momentum.
Losing an employee in the first year will typically cost at least 3 times the employee’s salary.
Not only does an effective onboarding process increase productivity and subsequent returns, but by reducing attrition, also minimises costs to an organisation. The costs of early turnover are so high as employee’s at this early stage typically haven’t had enough time to reach peak performance yet. On top of this, the business must invest the time of more senior staff as well as financial costs into training their replacement.
So we know a good onboarding process is important to building a successful organisation, but how can this be achieved? We’ve put together a guide for you here.