Employee onboarding is important for your business in the perspective of great results. Onboarding is a process that includes everything your new employee needs to become a valuable contributor to your business and it delivers a solid ROI.
Onboarding is an Investment
A good onboarding experience engages your new hire in your company as quickly and effectively as possible. Onboarding is important to make your new hire feel comfortable and equipped for their new role. It creates meaning and helps your new hire to understand how they can contribute to the overall strategy and culture.
Without a structured onboarding program, your business can risk spending a large amount of money on employee turnovers and loss of productivity. The average cost of replacing an employee within the first year is estimated to be at least three times their own salary besides all the hours of administration.
If you go through the trouble and expense of finding new hires, why not invest in them and create an experience that makes them want to stay with your company?
Onboarding Allows New Hires to Adjust Faster
New employees are less productive and they feel more stressed, because it takes time to figure out how to navigate and communicate in a new organization. Besides all the formal aspects they also have to focus on establishing new relationships and learn the organizational culture.
Onboarding is an easy way to support your talented employees and reduce turnovers. By implementing an onboarding program your new hire quickly reaches a higher productivity level. Actually a great onboarding program improves productivity with up to 70% compared to a bad onboarding process.
Align Your New Employees With Company Values
You want your employees to feel committed to the mission of your company and it’s set of values. However, this is not as simple as it sounds. Often your new hires aren’t even aware of what your business wants to achieve.
An estimated 50% of new employees don’t understand their company’s mission and values after 90 days. This is a huge challenge, because you want your new hires to associate with your company and feel involved.
An onboarding program aligns your new employees with their roles and makes them feel like an important asset in your company. Engaged and motivated employees work more efficiently and they are less likely to quit on you if they feel aligned with their particular role.
The ROI of Onboarding
To ensure that your new hires feel valued and important from the beginning, the best time to start the onboarding is actually before they even start the job. A great onboarding makes a good first impression and convince your new hires that they made the right decision.
There’s a clear connection between onboarding and the operational and financial success of your business. A study shows that new employees who went through a structured onboarding program were 58% more likely to stay with the company after three years.
Businesses that are more likely to create a good onboarding program deliver a remarkable return on investment and increase retention, productivity and employee engagement.