Onboarding is the process by which new employees acclimate to the social and performance aspect of their jobs. Research shows that new hires get about 90 days to prove themselves, so effective onboarding is critical. The faster newcomers feel welcome and prepared, the sooner they are able to contribute to the successful execution of your company mission.
Goals of Effective Onboarding
Onboarding educates new employees on their place within the larger organizational culture. In one recent survey, 86 percent of respondents felt that a new hire’s decision to stay at a company long term was made within the first six months.
The goals of effective onboarding include:
- Reducing time-to-productivity: Proper onboarding gets new hires up to speed much more quickly.
- Lowering stress: Starting a new job is a major source of anxiety. By telling new employees what they need to know at the earliest possible point, you minimize the negative effects that naturally occur.
- Decreasing turnover: Strong onboarding helps assure employees that they are valued and have all the tools they need for success on the job. It demonstrates in tangible ways that your company truly cares about its people – and makes it less likely that they will seek work elsewhere.
- Developing job knowledge: In addition to teaching new hires about your mission, values and culture, onboarding ensures that they fully understand their roles and how they relate to the organization’s big-picture operations. They learn what is expected of them, how to deliver, and when and by what means they will be evaluated. This prevents costly errors down the road.
The cost to replace an employee is estimated at 30 percent to 50 percent of a person’s annual salary for entry-level talent and as high as 150 percent t0 400 percent of annual earnings for senior and C-suite personnel. The Society for Human Resource Management (SHRM) has reported that half of all hourly workers in the U.S. leave their jobs during the first four months and an equal percentage of senior hires fail within 18 months. Use best practices to avoid being part of these statistics.
- Create metrics. In addition to time-to-productivity, critical metrics related to onboarding include employee engagement and retention. Assess new hire satisfaction with company-wide and group-specific onboarding initiatives at 30 days, six months and one year. Measure the percentage of your managers who are satisfied with your onboarding program and the preparedness of their new hires. In addition, consider the six and 12-month retention rates of new employees.
- Start early. Eighty-three percent of best-in-class companies start onboarding prior to an employee’s first day on the job. This includes welcoming them in various ways; for instance, each one is sent a personal note or the CEO prepares a special presentation for them.
Consider partnering with the recruitment experts at PrideStaff Fresno as you develop your industry-leading onboarding program. Contact us today to learn how we can bolster your ongoing hiring and talent management success.