Why Onboarding Matters

Estimated reading time: 6 minutes

We hear it all the time . . . “We can’t find people and when we do, they don’t stay.” This is why Onboarding Matters.

There are reasons for that and more often than not it is an outcome of the hiring process. The truth is “You only get one chance to make a good first impression!” Done correctly, your chances of a successful hire are greatly enhanced as you will see later in this document. Since onboarding is not a uniform process, let’s start at the beginning . . . Recruiting.

Recruiting

In today’s marketplace, it is almost hand-to-hand combat in the search for qualified employees. It’s not so much how you search, but more about what happens when you find a candidate that meets your requirements.

Be sure anyone interviewing a candidate is trained in how and what they can or cannot say or ask. Always search for job “fit.” Be sure your candidate fully understands the position and the expectations of performance over a given period. A history of your company and why people like working there is a powerful statement. The interview works both ways. so be sure all questions are answered on both sides. If you have pre-employment requirements like background checks, assessment tests, etc., now is the time. Better now if there are concerns than later if you hire this person. Make no mistake, you are not the only one looking for people, so it is important that you protect yourself by providing a safe, secure and comfortable workplace for all your employees. Onboarding matters greatly in this part of the hiring process.

We know now that onboarding begins with the recruiting process and not with the first day your new employee reports for work. Unfortunately in many cases, onboarding is a process that is being neglected in subtle and sometimes obvious ways. The truth is, a strong onboarding program has resounding influence over long-term employee engagement.

An effective onboarding program should be separated into two distinct phases.

• Phase one is designed to make your new employee comfortable in their new surroundings as well as absorbing them into your culture and preparing them to quickly become a productive member of your team.
• Phase two is an educational segment designed to acclimate your new employee to your business model, product offerings, customer management, and other business distinctions. Phase two trains the technical skills educates on the position methodology and motivate high performance.

If you’re wondering why onboarding matters, here’s a look at some of the ways neglected onboarding programs are causing companies to struggle. These are national statistics for all business types.  

• Half of all hourly employees leave new jobs in the first 120 days
• 23% of new hires turn over before their first anniversary
• 90% of new hires decide to stay or leave in the first six months
• Up to 20% of employee turnover happens in the first 45 days
• Nearly 33% of new hires look for a new job within their first six months on the job 
• Half of all senior level outside hires fail within 18 months

So we see what happens without a structured, comprehensive onboarding program. Now let’s take a look at the other side, where informed companies understand that onboarding matters and benefits greatly when a structured program is in place.

• Companies with an onboarding program retain 91% of their first-year new hires
• Companies with structured or formalized onboarding programs experience a 63% year-over-year improvement in customer satisfaction
• New employees who went through a structured onboarding program are 58% more likely to be with the company after three years
• Organizations with a standard onboarding process experience 50% greater new hire retention

All of this leads us to that beautiful, or perhaps ugly depending on your process, “R” word … Retention. A recent Harvard Business Review article, “To Retain New Hires, Spend More Time Onboarding Them” by Ron Carucci tells us that a new employee’s most vulnerable period is the first 12 months. During this period onboarding should focus on three key company dimensions: Organizational, Technical, and Social.

Organizational Onboarding

Teach them how things work. Be sure they have the information they need to function day to day; where to park their car, how to navigate the building, how the telephone system works, etc. Teach them your workplace “language.” The more a new hire has to ask, “sorry I am new . . . What does IMS stand for?” the more they feel like an outsider. Simple tools like a glossary of terms can go a long way.

Help them assimilate and adapt to organizational values and norms. Engage them in conversations about your company history and the brand. Explain how performance is measured and rewarded.

Technical Onboarding

Define what good looks like. Just because someone is hired for their capabilities and experience doesn’t mean they know how to deploy them at your company. New hires with deep areas of experience can become insecure when they suddenly feel like beginners. Provide your new hire with a job description that includes well-defined accountabilities or any boundaries around authority or available resources they should be aware of. Be sure they understand where their autonomy begins and ends.

Set up some early wins. Giving new hires clear goals is a powerful strategy since it allows you to share realistic expectations. Start with targets you are confident your new hire can meet and if all goes well, gradually increase the level of responsibility and expectations. This will allow you to confirm their strengths or discover any “gaps” in their skill set.

Social Onboarding

Build a sense of community. Emphasize your norms and values and positive culture of your business. New hires often feel like strangers in a foreign land, and that increases the chances they will leave your job.  Building relationships both internally and externally helps new hires feel less isolated and more confident. When new hires feel accepted and welcomed, they are less likely to feel like the new kid on the block.

If you want to retain the talent you acquire, you must make sure that their first year is positive and productive. Investing time and effort in new employees returns exceptional retention benefits. If you want to be an employer of choice for top talent, make sure your new hires’ needs are well met.

When companies clearly understand the connection between onboarding and the operational and financial success of their organization, they are more likely to create a program that delivers a solid return on investment (ROI) and many benefits, including:

   • Engaged employees who are motivated and connected to the company culture

   • Lower turnover and higher retention at a fraction of the cost of recruitment

   • Employee loyalty and satisfaction

   • Productive new hires adding to the bottom line quickly

   • Employees who feel valued and have bought in to contributing from the start

   • A better customer experiences

   • Increased revenue

Effective onboarding solutions are proving to be imperative systems for every company today. Yet, statistics and numbers show that not everyone understands the impact an effective onboarding process can have on their company. With the speed of technology, the organizations that invest in their onboarding processes will have a distinct competitive advantage over those who don’t. Which one will you be?

Onboarding matters!