Onboarding is a major retention driver. Ensuring that your onboarding process is modern and follows best practice guidelines is an impactful way to improve the long-term prospects of a new team member – and build a prosperous employee-employer relationship.
But just how important is onboarding? Below are nine statistics that may shock you.
1. Strong onboarding improves new hire retention by 82%
New employees who are part of a well-structured onboarding 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 retention, so it’s important to ensure onboarding activities span the employee’s entire first year of employment – not just the first week.
2. 6 our 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. This highlights the how important onboarding is for integrating new hires into the organisation and satisfying basic HR needs.
3. 22% of staff turnover occurs within the first 45 days of employment
Another study found that almost one-quarter (22%) of employees who resign do it within 45 days of starting a new position. This indicates that onboarding processes have traditionally not been effective at engaging the new hire.
4. 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 implementing a comprehensive onboarding platform. Which would you rather spend on?
5. On average it costs $10,500 and takes 33 days to hire
Hiring is no cheap task. According to ELMO’s 2021 HR Industry Benchmark Report , it costs an organisation on average $10,500 and takes 33 days to fill a position vacancy – not to mention the amount of effort spent by internal and external parties throughout the hiring process.
Below are examples of common onboarding costs:
- Manual handling
- Print costs
- Administration time spent
Considering the time, resources and costs involved in hiring a new employee, it’s important that the right decision is made. After all, a poor hire can cost a business in many more ways than just financially.
6. 40% of Australian’s feel lonely at work
One study found that 40% of Aussie employees feel disconnected in the workplace. The effect of loneliness leads to a decrease in productivity, motivation, mental health and wellbeing.
Fortunately, there are ways organisations can create a more inclusive team environment – one way is to incorporate inclusive practices into the onboarding experience. The better supported a new employee is, and the more connected they feel to their peers, the more successful they will be in their new role. Find out how to create a positive employee experience through onboarding by reading our blog.
7. Effective onboarding brings new employees up to speed 50% faster
The Harvard Business Review found that systematic onboarding increases employees’ productivity by up to 50%. The faster a new employee is brought up to speed, the more quickly they will contribute to business goals.
To drive productivity and engagement, onboarding should be well planned and incorporate the right set of targets, and distribution of information should be strategic. Read our blog to learn 5 ways to fast-track productivity in new starters.
8. 43% of HR professionals do not use any metrics to measure performance
Measuring the effectiveness of an onboarding program helps to inform future strategy and ensure new hires get a great employee experience from day one. However, almost half (43%) of HR professionals do not use any metrics to measure performance, according to ELMO’s 2021 report. What’s interesting is that most of these respondents had not fully implemented technology – but they are missing a trick. By leveraging technology, organisations can gain visibility of the effectiveness of their onboarding processes and make necessary adjustments to improve outcomes.
9. The most common length of time it takes a new starter to reach full productivity is three months
The goal of effective onboarding is for new hires to reach full productivity quickly. According to ELMO’s report, the most common length of time for a new starter to reach full productivity in 2020 was three months (according to 33% of respondents). The second-most common length of time was one month (25%) followed by six months (17%).
The sooner a new hire can reach full productivity, the better. If employees are taking over six months to reach full productivity it may indicate one of two things: the employee in question is not the right fit for the company or role, or that the onboarding process is not fulfilling its objectives.
Effective onboarding is the difference between a new hire thriving or just surviving. To make your onboarding processes go further, check out HROnboard.
HROnboard, an ELMO company, offers a best-in-class software solution that reduces the amount of time HR teams and leaders spend securing the best candidates and undertaking the critical onboarding process for new hires. Our solution also helps manage internal employee role changes and can create a smooth and seamless process for exiting employees. To find out more, reach us here.
ELMO Software offers people, pay and process solutions for the entire employee lifecycle, from ‘hire to retire’. This includes recruitment, learning, performance management, payroll, rostering / time & attendance, expense management, and more. For further information, contact us.