While onboarding will set up your new hire for success, it will also save your organization a ton of money. A study by the Aberdeen Group found these year-over-year benefits for organizations with a structured onboarding program:
An efficient onboarding program has a positive impact in the long run. Here are its financial benefits:
It takes time for new hires to get in the swing of things. During the first month or so after training, new employees are functioning at about 25% of their maximum possible productivity. You’re paying full salary to an employee that’s producing 75% less than their colleagues. So you’ll want to ramp them up ASAP.
An efficient onboarding program helps lessen the learning curve. By easing the new hire into their responsibilities and introducing smaller tasks at first, you’ll allow them to add to the bottom line right away. Essentially, you’ll save money in the long run by maximizing their productivity from the get-go.
According to the Aberdeen Group, 90% of employees make their decision to stay at a company within the first six months. With an effective onboarding program, you can jump-start employee loyalty and satisfaction.
This is critical because turnover is expensive. The cost of losing a middle-level employee can be as high as 150% of his or her annual salary (that includes recruiting, interviewing, hiring, training, and lost productivity).
Retention is improved through onboarding when employees receive ample training and support. That way, they’re not left at a dead end, and they have a clear direction about what they need to do to achieve the next milestone.
A successful onboarding process doesn’t end after a new employee’s first day. It’s an ongoing process to boost productivity and improve retention. By focusing time and energy on improving your onboarding program, you’ll foster an engaged environment while raking in the dough.