New Hire Onboarding Saves up to 200% of Employee Salary
Save up to 200% of a new hire employee’s salary with a planned onboarding program.
We’ve either experienced it ourselves in our working life or know someone who has – you start a new job -- excited, happy, ready to get dig-in, and then – the first day falls flat. If you’re lucky, you have a desk and a computer and possibly your boss or someone on your team invites you to lunch, but the rest of the day you’re left to figure out what you’re supposed to do.
This scenario doesn’t change much for senior managers or executives – except they likely have an office.
A new hire makes a decision to stay at a new job within the first 90 days of employment. The cost of replacing a new hire is between 50 and 200% of their salary.
This decision is based on the expectations a new hire has of the job and if these are met in the first several weeks of working. If a new hire decides a wrong decision was made in accepting the position, it is very difficult to win back their interest and support.
According to a 2014 research report from Aberdeen, of the 64% of companies who will be hiring in the next year, only 32% deliver a defined and formal onboarding program. One reason for this omission is that companies don’t recognize the importance and value of socializing new hires into the organizational culture. Additionally, of those companies that do provide onboarding, only 37% of programs are longer than one month.
A successful onboarding program provides support to a new hire, at a minimum for the first 90 days and possibly as long as 12 months.
Developing, delivering and implementing an onboarding program doesn’t have to be overwhelming if a planned, and standardized program is in place. The biggest challenge is determining who and what business unit is responsible for it.
For an onboarding program to be successful it's important to have several key players committed to the program.
HR needs to be part of its planning and delivery. Components of an onboarding program include an overview of company policies, benefits and compliance requirements.
Learning and development or the training department must be part of curriculum design and development -- determining what information is required for new hires to understand the organization and how work gets done to ensure success on-the-job.
Every department in the organization must understand the onboarding process and support a new hire within their department to complete the program as required.
Finally, the following decisions need to be made by HR and L&D with a representative from each business group as part of the conversation:
When is the onboarding program delivered?
How is the onboarding implemented?
Who will oversee it?
What are the expectations to complete it?
Developing onboarding best practices is crucial to retaining new hires. It shows a new hire the organization is committed to their success by supporting them with training, and opportunities for coaching or mentoring in an environment that supports staff for performance success.