How Great Onboarding Increases Employee Retention– Part 1

Onboarding is one of the hottest buzzwords in our work world today.  And for good reason!  Finding employees is hard.  Great onboarding often determines whether employees will stay and can actually do the job. This blog will explain how onboarding increases employee retention. Next week, we’ll talk about how to create great onboarding programs.

So, what is “onboarding”?” 

Let’s get an official definition.  According to the Society of Human Resource Managers (SHRM), “Onboarding” refers to the processes in which new hires are integrated into the organization. It includes activities that allow new employees to complete an initial new-hire orientation process, as well as learn about the organization and its structure, culture, vision, mission and values.” 

It’s good for business. 

• Recent surveys indicate as much as 30% of new employees leave in their first 90 days.
• A study by Center for America Progress indicates it costs ~20% of their annual salary to source and select someone to replace an entry or mid-range employee.
• However, when a company has “great” onboarding, 69% of employees are likely to stay 3 years (or more!)

A great onboarding process impacts real bottom line profit by reducing turnover.  Less money spent on sourcing, selecting and training new employees.  Get the finance team onboard to help you make the business case for improving onboarding!

“I’m good, I already do orientation,” you say? 

Well, that’s great!  Orientation is one SMALL but important step in the comprehensive onboarding process and program.  Apollo Tech advocates embracing the “Three Cs of Onboarding.”     

• Communication – Clearly communicate and inform employees about what they can expect from their job and what the company expects from them. 
• Culture – Share your company’s vision, mission, and culture so new hires understand what they’ve become a part of, how decisions are made (top down or consensus), and what the most important metrics of success are (customer loyalty, revenues, profits, or some combination thereof). 
• Connections – ¹Employees who have a “close friend at work” are more engaged than those who say they don’t.  Further, a 2018 Gallup poll found that those who have a best friend at work are twice as likely to be engaged in their jobs, are better at engaging customers, produce higher-quality work, have a greater sense of well-being, and are less likely to get injured on the job.  Onboarding should include opportunities to connect with co-workers so these relationships can form. 

Now that we know more about how onboarding increases employee retention, next week, we’ll look at the 5 Keys to Building an Effective Onboarding Program. You won’t want to miss it!

Author: Jim Hartigan, Managing Partner – Orgwide Custom Learning Solutions