If you are a leader who is hiring, it’s extremely vital to have an effective onboarding process in place in order to curb turnover and increase the rate of retention for new hires. The cost to an organization can be significant if employees leave within a short period of time – not only financially, but in other ways, too.
A successful onboarding process involves forms management, tasks management, and socialization in the company culture, among other things. Incorporating these components will go a long way in helping companies achieve optimal ROI from their onboarding process. To help you onboard employees so that both they and your company are successful, I have compiled a few things for you to consider.
Managers should start taking the costs of employee turnover into consideration. According to at least one survey, it can cost a company an inordinate amount of money if they needed to replace employees at basically any level of expertise. For example:
- For entry-level employees, it costs up to half of their annual salary to replace them.
- For mid-level employees, it costs more than 150% of their annual salary to replace them.
- For high-level employees, it can set an organization back 400% of the employee’s annual salary for each of the employees at that level to be replaced.
High turnover costs an organization even more than monetarily, however. Consider the investment of time during the onboarding process where new employees are interviewed (often multiple times); actually hired; and then trained, sometimes even on specialized equipment. There are also reduced productivity and lost opportunity costs involved while employees are using resources to onboard these new workers.
Businesses that rated their onboarding processes highly realized revenue, engagement, and satisfaction improvements in the previous year. If you improve your company’s current onboarding process, you can provide your new employees with the motivation and incentives they need to succeed. And happy, successful employees are more likely to stick around for the long-term.
1. Create an SOP
Coming up with a detailed plan that clearly defines each step in the onboarding process ensures that your new employee receives all the training they need to succeed. It’s also vital that everyone involved in the onboarding process is aware of every step as well as who oversees each of those steps. An effective onboarding process should also properly welcome your newest team member and introduce them to both their own job and to your company culture. Importantly, creating a Standard Operating Procedure additionally ensures that every new hire is treated the same way.
A successful onboarding process can include instructional videos and updated, current informational documents to read. Scheduling get-to-know-you meetings between new workers and key employees allows everyone to be aware of who has which jobs and which people will be working with whom. And a checklist that details each step in the process can help both the onboarding supervisor as well as the new hire keep track of what to expect and what has been accomplished along the way.
2. Don’t Rush
Give your new hires the time they need to settle in and absorb all the new information that they’ll need to do their job well. Rushing employees through the process can backfire, so help them fully integrate and become a valuable part of your company. Take this opportunity to bond with your new team member; foster a sense of belonging and connectedness. These actions can boost retention considerably, according to human resource specialists at the Wynhurst Group.
3. Set Realistic Expectations
Be honest about the job from the beginning. Sugarcoating what new employees may experience is counterproductive and erodes trust. And few people want to work at a company they don’t trust. To build trust and loyalty, onboard new employees by being transparent about the benefits and demands of the position in a way that helps them envision a long future at the company.
How leaders approach prospective employees can mean the difference between those individuals becoming new employees or missed opportunities. Let’s see how we can work together to increase your successful onboarding of new team members.