Onboarding Can Make or Break How Long an Employee Will Stay at Your Organization

Onboarding Gone Wrong

Consider a situation where you have invested a lot of time, energy, and effort in finding the right candidate to fill a job opening within your organization. Ultimately, you find a candidate, who is a perfect match for the job. As Patricia joins the organization, however, things start to go downhill quickly. Within a year, she resigns from her position. The average cost of rehiring someone in Patricia’s position as a senior-level manager is around 400 % of her annual salary. Not chump change at all, is it?

Why Does Onboarding Matter?

Poor onboarding can leave employees with lower confidence in their new roles, worsened levels of engagement, and an increased risk of jumping ship when they see a new, more exciting position elsewhere. On the other hand, new employees who go through structured onboarding programs are 58 % more likely to be with the organization after three years. Read below to learn more about what makes a good onboarding process.

Getting Quickly From Takeoff to Destination: The Benefits of Improving the Onboarding Experience

Investing in onboarding is a solid investment for the entire organization. In addition to providing happy, committed and knowledgeable new employees, it also enhances the working environment, and gives the existing employees a new perspective. Essentially, onboarding is a cumulative effect that over time can have a significant impact on results.

Successful onboarding is a critical part of a new employee's experience. Additionally, the employee experience also impacts the customer experience. In other words, there is a clear link between happy and productive employees and happy customers.

However, the benefits don't end there. An investment in onboarding will increase the total employee lifetime value as well, turning it into a competitive advantage. If you’re finding this a bit too good to be true… We can assure you; it isn’t. In fact, 69 % of employees are more likely to stay with a company for three years if they experienced great onboarding. Take a look at the graph below to see the added value that onboarding has to an employee's lifetime value.

Pssst… No worries. Our next two newsletters will reveal the rest of the employee lifecycle graph, including stage two and three.

Landing on Solid Ground: 3 Ways to Improve the Onboarding Process

1.????Engaging Prior to Day One

Would you wait a few weeks before texting a person after having a good first date? Probably not, right? Onboarding new employees can be based on the same principle; get going right away. The period of time between accepting a new candidate and their first day is the most risky, as skilled candidates often receive multiple offers during this time. As a result, it is vital to stay in touch and engage new employees from the time they are hired. Start promoting the company's culture before new employees arrive, and get them familiar with the organization's history, values, and purpose.

2.????Creating a Buddy System

Making the transition to a new organization can be stressful. One of the biggest challenges is the loss of social interactions and friends from the employee’s previous job. To overcome this, using a buddy system is extremely helpful. Structured buddy conversations introduce a new employee to the team, provide them with hands-on training to learn their job more quickly, and help them integrate into the culture. A buddy system helps new employees feel comfortable asking seemingly "insignificant" questions, finding their way around, and buying lunch. In fact, the system is a win-win, as both parties grow from it. To ensure that the buddy system works effectively, make sure the people assigned as buddies to new employees are members of the same team, or at least within the same department.

3.????Prioritizing Frequent Check-ins

A recent LinkedIn survey found that 96 % of new hires consider one-on-one time with their direct manager to be critical for a successful onboarding process. That makes it crucial for managers to invest time in their new team members and make a good first impression. A successful onboarding experience takes more than signing paperwork; it is also about getting to know the person whom the new employee will be working with and reporting to, and vice versa. Managers play a key role in establishing new employees' success from the very beginning by setting clear goals and measures for success. Even though managers have busy schedules, they should prioritize their new employees by meeting one-on-one to boost motivation, growth, and retention. A smooth transition from new employee to team member will be made easier this way.

Need more information on how effective onboarding can benefit your organization? Click here to read a case example on how we helped the Danish Ministry of Defense successfully implement a new onboarding solution.