What is Onboarding?
Onboarding is the process by which new hires acquire the knowledge, abilities, attitudes, and behaviors needed to contribute to the team and significantly improve the company. It is the action or process of acclimating a new hire to their new workplace or integrating them into the company.
The approach taken by a company to onboarding has a direct bearing on output, employee involvement, and retention. Both the individual and the company need proper onboarding. Employees determine within the first six months whether or not to stay with a company. Keep in mind that losing an employee in the first year can cost at least three times that employee’s pay.
An effective onboarding program has a wide range of benefits for both the organization and the new hire. We list out a few below:
1. A better working environment
There are more jobs accessible than ever before, and your employees have plenty of opportunities to choose from. If they don’t like working for your company, they can easily find another chance that suits them better.
Setting the tone for the complete employee experience is a great onboarding process. By emphasizing things like company culture, employee growth, and regular check-ins, you can demonstrate to new hires how much you care about their time with your business. This positive employee experience is then maintained by extending these focus areas past your onboarding phase, from hire to retirement.
2. Improved staff involvement
Engaged workers go above and beyond at work, which boosts output and revenue while reducing turnover and absenteeism. The issue is that only 33% of workers are actively involved.
Employees who are onboarded properly may feel more of a part of your company’s purpose, vision, and values. Create a buddy system for your new employees and arrange for them to meet the CEO for breakfast so they can learn about the business in a fun setting. Recognize employees early for a task well done and collect and use their feedback. You can start building employee engagement right away by incorporating these tasks into your onboarding program for new employees.
3. Increased staff engagement
For good reason, employee retention is a top concern for many businesses this year. When you take into account factors like the cost to fill the job and the cost of vacancy, employee turnover is expensive. Even though some turnover is inevitable, you still want to increase the lifetime worth of each employee. It is more wasteful to replace a new hire after 90 days than it is to replace a more seasoned worker who has contributed years of output to your company.
Businesses with effective onboarding procedures see an 82% increase in new employee retention. Since 11% of candidates have changed their views about an offer after signing, this should start with employee pre-boarding as soon as an offer letter is signed. Offer a warm welcome to capitalize on the excitement generated by your hiring process and job offer and ensure a smooth transfer from applicant to employee. So that your employee’s first day can be full of celebration, introductions, and early learning, get the paperwork out of the way. Continue your onboarding process for at least 90 days after that to make sure new employees successfully transition into and integrate into their new roles and stay on the job permanently.
4. More easily attracting ability
After their new hire onboarding experience, 20% of new hires say they are less likely to suggest a company to a friend or family member. This is problematic because disgruntled workers may air their grievances openly on review websites like Glassdoor or InHerSight, harming your employer’s brand in the process.
Your ability to not only attract and keep top talent but also to provide an excellent employee experience will be greatly aided by an entertaining onboarding program. You can significantly improve employee retention and draw top candidates with the aid of an engaging onboarding program that offers an excellent employee experience. Additionally, make sure to include new employees in your employee referral program so they can quickly suggest exceptional talent from their networks. Employee referrals are a crucial avenue for sourcing candidates because they are known to be easier, quicker, and less expensive to employ. They also onboard quicker and stay longer.
5. A more solid corporate culture
Simply attracting and keeping talent is insufficient; you also need to do this with the correct talent. For instance, a person who would fit in perfectly with Zappo’s eccentric culture is probably not the right match for Amazon’s high-standards culture. You can attract and keep the right people by creating a strong, purposeful company culture and communicating it during the recruitment and onboarding processes.
Companies that invest in employee onboarding report that it is simpler for new hires to fit into the company culture (69%). In the early stages of the employee lifecycle, communicate the purpose, vision, and values of your business frequently. To ensure cultural alignment, use tools like onboarding materials and all-hands meetings to showcase employee success stories and company accomplishments.
6. An increase in output
For new hires to reach their maximum productivity, it usually takes about a year. It takes time to adapt to a new role because of things like learning about your company and developing connections to create cross-functional teams.
When new hires are onboarded properly, this process can be accelerated, reducing the time it takes for workers to become proficient and increasing productivity by over 70%. A successful onboarding procedure facilitates employee relationship development and assists the new hire in settling into the company. For employees to know what is expected of them, where they stand, and how to progress, it also involves goal setting, frequent manager check-ins, and employee development. Only 21% of workers firmly concur that their performance is managed in a manner that inspires them to produce excellent work, making this a crucial area of focus for many organizations.