For years, onboarding was the ugly duckling of Human Resources departments. Focusing on other priorities, it has traditionally been difficult to find the time and money to design a plan that effectively integrates a company’s new employees.
Times; however, have changed. Today, HR professionals have realized that onboarding can help improve productivity, reduce turnover rates, and foster the spirit of collaboration within the company. If you’re still not convinced about this, we encourage you to read through the five convincing facts at the end of this article to help you see the light.
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What’s onboarding anyway?
Onboarding is the process through which new employees acquire the knowledge and skills necessary to become effective members of an organization. This usually includes filling out a lot of paperwork (employment contract, confidentiality policy, proper use of IT equipment, etc.), knowing the history of the company and its products, interacting with colleagues, talking to managers, recognizing the values of the company, or simply knowing how the coffee machine works.
The idea is to integrate new hires into the organization. To help them go from being outsiders (many of them may not even know the company’s products in depth) to insiders (professionals who feel like they’re part of the company).
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The importance of onboarding in 5 facts
In recent years, more and more scientific studies have demonstrated the importance of investing time and money in the onboarding process. Based on the latest research, we’ve compiled five facts (published by Brandon Hall Group, Christine Marino and the Center for American Progress) to help convince you to get down to work:
1. A successful onboarding process improves the retention rate of new employees by 82% and their productivity by more than 70%.
2. Employees who participate in a well-structured onboarding process are 69% more likely to stay in the company for three years.
3. A new employee needs between 8 and 12 months to be as productive as their peers.
4. More than 50% of employees who leave their jobs do so during the first twelve months.
5. In the United States, the cost of replacing an average employee is between 10% and 30% of their annual salary (in some cases, as much a full or two-year salary).
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Personnel induction: invest now so you don’t have to do it later
All this is summed up by the fact that investing in the onboarding process makes employees more productive in less time, reinforces the company’s culture, and reduces turnover rates. At a time when all companies face the difficult challenge of attracting and retaining talent, the onboarding process can be an important factor in a company’s overall strategy.
Furthermore, it is evident that not having a good onboarding process can incur enormous costs for companies. If employees do not understand how the company works in a short period of time, do not identify with it, or do not know what its objectives are, the result will be unproductive workers and high turnover rates.
The solution is to invest time and money in the onboarding process starting now, so as not to have to do it (two, three, or four times) down the road.