A company culture that focuses on engagement can be seen as a nice-to-have. After all, who doesn’t want a workplace that’s fun, challenging, and exciting? The problem with focusing on cultural initiatives (like onboarding, for example) is that there are so many other issues knocking at the door of the HR leader.
But contrary to what many believe, employee onboarding (along with several other HR functions) can be more than just a costly vanity initiative. It can be incredibly profitable.
Turning a profit is the key component of business. Every employee, client, partnership, and process—including an existing or potential onboarding process—needs to be scrutinized for the bottom line. Read on to discover how onboarding your new employees is key to turning a profit.
Slow and Steady Wins
The goal of any organization is to get its new employee up and working as fast as possible. The problem with that is it typically takes eight months for a newly hired employee to reach full productivity. This can feel like forever when the cost-benefit of your new hire is not easily seen. So how can you speed up the process and increase productivity? You guessed it: onboarding.
Employees whose companies have longer onboarding programs gain full proficiency 34% faster than those in the shortest programs. The want of a new employee to be established as fast as possible will always be present, but the fastest way may not seem so at first. The best onboarding decision for the situation could be a 90-day process or a six-month process. However long the onboarding process takes, don’t forget to keep these tips in mind:
- Focus on culture.
- Get the entire team involved.
- Set expectations early.
The benefits of an onboarding process go beyond taking your new hires out to lunch and getting them familiar with the workplace culture. It also helps them be more productive in their new environment. Organizations with a standard onboarding process experience 50% greater new hire productivity, and it doesn’t stop there. The cost-benefit of an onboarding system goes further than the 90-day process. Effective onboarding programs can improve employee performance by 11.5%.
Tip: The details are in the little things. Encourage your new employees throughout the onboarding process. Don’t forget to give positive correction when correcting one of their mistakes. A happy employee is an efficient one.
Retaining the right employee is as important as finding the perfect candidate in the first place. This is because the estimated organizational cost of employee turnover ranges from 100% to 300% of the replaced employee’s salary. For some small companies or startups, that can be detrimental.
Onboarding can be a big part of retaining established employees. Roughly 69% of employees are more likely to stay with a company for three years if they experienced great onboarding. The right candidate for the job description may be hired, but if he or she feels disconnected in the workplace due to poor integration, it could cost more than just having an open position again.
“Employees who believe that management is concerned about them as a whole person—not just an employee—are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability.” – Anne M. Mulcahy, former CEO of Xerox
The temptation to throw your new hire into the deep end will always be present, but be careful. A new hire is just that: new. Employees usually don’t get comfortable with their new environment quickly. It may take time to see true productivity from them, which can be difficult. But not allowing them to go through a proper onboarding process can be even more difficult. Don’t let your new employees fail from lack of leadership, improperly set goals, and a rocky onboarding process. Establish your employee onboarding the right way, and let your workplace feel like the home your employee always wanted.
About the Author
Christine Marino is the Chief Revenue Officer of Click Boarding, LLC, a company that offers employee onboarding software and solutions. She is responsible for the sales, marketing, and business development strategies. Leveraging her 18+ years of experience in the Human Capital Management space, Christine drives company growth through strategic partner relationships as well new customer acquisitions across the small-to-large enterprise markets.