With the trend towards a gig economy, people are less likely to stay at a job long-term – making hiring and retaining quality staff a major challenge for HR departments.
Ensuring that the onboarding process is modern and follows best practice guidelines is an impactful way that employers can improve the long-term prospects for a new team member – from the perspective of both the employer and employee.
But just how much of an impact can the onboarding process make?
Here are 4 statistics that may shock you.
1. Strong onboarding improves new hire retention by 82%
New employees who are part of a well-structured onboarding orientation program are 82% more likely to remain at a company for up to three years. Comprehensive onboarding platforms are designed to allow your employees to survive and thrive!
Onboarding is a critical part of talent attraction and retention – thus why it should be viewed as an activity longer than one week (at least a year).
2. 6 out of 10 managers have had an employee leave during probation due to poor onboarding
Studies show that 6 out of 10 Australian managers have had an employee leave within their probation period – with 43% of those employees leaving within the first month due to poor onboarding practices.
This outlines the important role onboarding has integrating new hires into the organisation and satisfying basic HR needs.
3. Turnover costs up to 300% of the replaced employee salary
When employers fail to engage their employees…it costs. It is estimated that staff turnover can cost an organisation 100% – 300% of the replaced employee’s salary.
In many cases, the cost of filling a position could cover the price of putting in place a comprehensive onboarding platform. Which would you rather spend on?
4. On average it costs $4,000 and 24 days to hire
Hiring is no cheap task: it costs $4,000 on average and 24 days to hire – not to mention efforts from both internal and external parties throughout this hiring process. After ensuring a quality candidate, the organisation onboarding is the first experience that new hires receive.
The onboarding strategy after offer acceptance is extremely important for the new hires perception of the organisation. Here are just a few of the Onboarding costs:
- Manual handling
- Print costs
- Administration time spent
5. 40% of Australian’s feel lonely at work
Recent studies show that 40% of Aussie employees feel disconnected and lonely in the workplace. The effect of loneliness leads to a decrease in productivity, motivation, mental health and wellbeing.
These alarming stats are being called a detrimental public epidemic that calls for action. How do you provide an inclusive team environment at work? Onboarding is one type of support system workplaces can use to further connect new hires with their teams effectively – with appropriate information delivery.
6. 25% of companies do not include training in the onboarding journey
25 percent of companies admitted that their onboarding journey does not include any form of training. This can lead to a loss of 60 percent of a company’s entire workforce over 4 years.
Many organizations worry that skill development is something to be cautious of, as they may leave and take those skills to a competitor – however this mentality disables your workforce.
An inclusive onboarding process is important, welcoming employees into the culture of your organization. In addition to a welcoming culture, employees should be shown all the ways they can meet professional goals while working within your walls – as career growth spurs on commitment and loyalty.
7. Onboarding increases performance up to 11%
Effective onboarding has been shown to increase employee performance by up to 11%. There is little difference between the first day at a new job and the first day in a new classroom.
People often feel nervous, not knowing all the rules and what’s expected of them. If no one shows the new starter the ropes and lets them in on the unspoken rules, they will never feel completely integrated – affecting their ability to perform at their best.
The stats speak for themselves – onboarding matters. By welcoming new starters with a positive onboarding experience, businesses can massively improve their levels of staff retention and engagement.