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    PlantMiner

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    Fujitsu General Australia

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    Sarah Gatehouse.

    Fujitsu General Australia

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Onboarding | 5 min

10 reasons why you need to rethink your onboarding strategy

10 reasons why you need to rethink your onboarding strategy

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. But the truth is, it’s a fundamental engagement point and your onboarding strategy is critical to their longevity in your organisation.

A new team member’s first few days, weeks, or months will shape how they get started, their long-term performance, and ultimately 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 employee onboarding strategy has the power to make a serious impact upon organisational success. Here’s why:

 

1. An effective onboarding strategy directly improves retention

Consider the following employee retention stats:

Research from multiple sources has shown again and again that an employee’s first impression and initial onboarding 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.

As you can see in the diagram below, when a new employee is being onboarded, the returns they bring to the organisation in terms of profit is in the negative. And it can take a while – sometimes up to 12 months – depending on the role for them to reach peak performance.

 

onboarding strategy

 

On the flipside, for those employees who have a positive onboarding experience, 69% of employees would be more likely to stay in an organisation for three years (Society for Human Resources Management)

People may choose to leave within the first year or less for a range of reasons but if the onboarding experience itself is poor enough this could be a sticking point. Establishing a robust onboarding program with 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.

New employee onboarding workflow in intelliHR - onboarding strategy
Set up onboarding workflows in intelliHR to automatically provide and gather the information you need from new starters.

 

Once this process is established and you have some data on it, you can look for ways to optimise and improve it so that your employees have everything they need to succeed.

RELATED: The 3 least effective onboarding techniques and how to avoid them

 

2. Effective onboarding increases productivity and 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 strategy 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.

Consider these three statistics:

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.

RELATED: 4 Simple ways to improve team performance

3. Effective onboarding makes businesses more profitable

Losing an employee in the first year will typically cost at least 3 times the employee’s salary (Bersin by Deloitte).

Not only does an effective onboarding strategy increase productivity and subsequent returns, but by reducing attrition, also minimises costs to an organisation. The costs of early turnover are so high as employees at this early stage typically haven’t had enough time to reach peak performance. On top of this, the business must invest the time of more senior staff as well as financial costs into training their replacement.

What next?

So we know that good processes are vital to successful onboarding of new employees which, in turn, is important to building a successful organisation, but how can this be achieved? We’ve put together a guide to maximising your onboarding process here.

 

 

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