Why the Onboarding experience is so important
We hear the startling statistics on a regular basis that in excess of 25% of new hires leave their employer within the first year. As employers, the investment in new staff is costly to ensure rapid time to productivity, but most importantly, the cost to replace staff that has left the organization has been coined at 150% of an employee’s actual salary. All quantitative statistics aside, high turnover rates hurt the company brand. Social media provides very quick access for employees to vet frustrations about their experiences and with the war on talent, no employer can be vulnerable.
In our experience, we have found that employers have been working hard to establish more seamless recruitment processes to allow for potential candidates to apply with ease. We know that inefficient or cumbersome recruitment processes prevent many recruits from even applying in the first place. The challenge is that a large portion of employers are making the recruitment process easier, but what happens AFTER the offer is signed?
Let’s re-visit the statistic that states that 25% of your new hires could quite possibly leave in the first year. Did you know that efficient onboarding programs have been proven to reduce this rate to less than 5%? This is a startling reduction. There are many elements to a good onboarding program including training, mentoring and buddy programs, personal development and feedback initiatives and efficient administrative processing.
Some of the components of a strong onboard program can take several months to develop; however, reducing administrative processing can be rapidly deployed with strong HRMS workflows. Imagine a candidate who has just accepted a new opportunity with your organization. HRMS workflows can be easily designed to provide access to this new candidate to initiate benefit sign-up, allow them to enter personal information, review company policies, research company statistics, and receive a welcome message from the employer - all before they even step in the door. There really is no better way to say to the candidate, "we are excited you are here, welcome aboard!" You never get a second chance to make a first impression. Let your new recruits see your organization as a best in class employer by improving your onboard experience which in turn will reduce your costs and turnover, increase employee morale and strengthen your employer brand! Ask us how we can help you.