An employee onboarding is the process in which a new hire is oriented on the culture, people, policies, and procedures of the organization. The schedule, duration, and thoroughness of the employee onboarding process may vary, but its importance cannot be overstated.
An effective onboarding process does wonders for your company. From making sure that your top candidate actually shows up on their first day, to retaining them, to saving money, there’s a myriad of benefits to convince you to invest in an effective employee onboarding process.
Below are some of the top benefits of having a great onboarding process:
#1 Improves hiring and retention rates –
Just because your candidate accepts your offer, doesn’t mean they’re guaranteed to actually show up on their first day. Picture this. A candidate accepts your offer and they’re scheduled to start in a week. In the interim, they receive another offer from a different company which includes an onboarding tool via email that explains articulately the culture, people, procedures, and processes of their company. This other company, based on their onboarding process alone, can end up stealing your prospect.
Effective onboarding not only helps you hire talent, it increases your chances of retaining them to. According to the Society for Human Resource Management, 69% of employees are more likely to stay with a company for three years if they experienced great onboarding.
#2 Improves new-hire productivity –
An effective employee onboarding process is efficient. The quicker you can arm your new-hire with the necessary tools, knowledge and support they need to do their job, the quicker they can start doing it. It also helps new-hires build a positive outlook on their new job because they feel supported by the company.
#3 Reduces training costs –
Employees start getting paid from day one even if they haven’t made money for the company yet. An inefficient employee onboarding process can be sloppy, unstructured, and hard to follow. This results in new-hires spending more time in the onboarding phase, costing the company more time and money. Great onboarding can utilize the company’s resources efficiently.
#4 Improves new-hire transition –
An effective onboarding process boosts company culture and fosters healthy relationships between your new-hires and the people in your company. Starting at a new office can be scary for some people, and a good onboarding process can help by making the transition smoother.
#5 Assesses new-hire needs –
Employee onboarding doesn’t end after you show new-hires the ropes. Onboarding and new-hire training often overlap in order to prepare newbies before they’re expected to produce. After the new-hire training phase, part of an effective onboarding process is to do a gap analysis. This evaluates the new-hire’s performance during the training and aims to recognize skill gaps to fill, and how to fill them so the new-hire can effectively perform their job.
An effective employee onboarding process is a must for companies, whether they be start-ups or long-established. Use an employee onboarding checklist to ensure that each phase of onboarding is executed and streamline your process.