New data from Sibson Consulting reveals successfully onboarding new employees generates millions in saved revenue and retains the next generation of talent.
Employees usually start a new job with a mixture of excitement and nervousness, but new data indicates that their bosses should also have butterflies in their stomach. In many industries, more than 25% of all new hires leave the job within their first year,
With so much at stake, sticking new hires in a poorly-lit conference room to watch an orientation video filmed during the Reagan administration isn’t going to cut it. This is especially true with millennials, who will make up more than 60% of the workforce by 2022 and demand a higher standard of social experience from their workplaces.
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Why Bad Onboarding Happens
Nobody sets out to create an onboarding process that causes new hires to leave the organization. But whether you’re running a Fortune 500 public company or a small nonprofit, you’ll likely encounter the same set of challenges to setting up an effective onboarding process that works.
- Consistency: Your organization consists of employees in many different roles (IT, administration, web design, etc.). Finding the right balance between an onboarding process personalized to each role and one that is scalable for the entire company is difficult.
- Capacity: The best onboarding process on paper will still live or die on the managers tasked with implementing it. Employees already stretched to capacity with other responsibilities will naturally neglect work they feel isn’t vital to their jobs, such as helping with the onboarding process.
- Accountability: Although HR should play a large role in facilitating onboarding best practices, leaving them as the sole stakeholder sets up your onboarding process for failure. Onboarding should be a responsibility of the entire organization, from the top executive down, with a system in place to track accountability, especially among hiring managers and others assigned to bring new hires up to speed.
- Resources: A well-run onboarding process requires many different assets to come together, such as technology, video, etc. that decision makers may want to earmark for other uses.
- Culture: Many organizations have trouble identifying, communicating and demonstrating what makes them unique and attractive to new hires. Making this a priority will help you hire new employees that fit and integrate quickly with the organization's culture.
A Successful Onboarding Process Saves You Money and Keeps You Competitive
According to industry benchmarks, new hires are 69% more likely to stay at least three years with the organization if they go through a structured onboarding process. Sibson’s consultants have extensive experience helping organizations of all sizes create an onboarding process right for their needs, and are waiting to help you save money and retain your next generation of employees.
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