Onboarding programs are the most integral part of recruitment processes. Having more power than anybody would estimate, improved and planned onboarding programs can increase employee retention by 82% and productivity by over 70% in organizations.
Surprisingly, over one-third of companies worldwide do not have an onboarding procedure. Lack of this integral element is one of the leading causes of employee turnover and can cost businesses 100 to 300% of their employee’s total income.
The most significant reason behind organizations foregoing onboarding can be the costs it incurs. However, not having an onboarding procedure can lead to turnovers that cost companies 20% of an employee’s salary just to recruit and train another in their place.
If they had an efficient onboarding program, businesses worldwide could save 4494$ every time they hire and retain a new employee for the long term.
We have summarized five major onboarding process benefits that a continuously improved program can bring to organizations.
What does an Effective Onboarding Process Entail?
An effective onboarding program is a systematic, planned, and well-managed procedure that helps and acclimates new hires to understand their job roles and company better. Onboarding programs are often misunderstood and therefore prevent organizations from realizing their benefits which can greatly accentuate performance.
Understanding the benefits, importance, and ways of onboarding correctly is a crucial task for any administrative authority. Managers and HR reps should particularly participate in and continuously work towards building and hosting better onboarding programs.
With some investment, companies with a smart onboarding plan can get 48% organizational support and 18 times more company loyalty from new hires. These firms could have also saved all the money, time, and energy they would have spent looking for replacements if they had eliminated the need for those in the first place.
Top 5 Best Onboarding Process Benefits
1. Increased Employee Experience
When you play your cards right, your onboarding program will be successful in making new hires increasingly interested in your goals and aims. According to a statistical analysis by Deloitte, 84% of organizations acknowledge employee experience as one of the most crucial issues for their firms.
When your employees experience a good onboarding program, you get higher employee retention. Moreover, a happy, satisfied employee will likely recommend your company against your competitors to their acquaintances. These small add-ons will bring your organization improved reputation and growth.
Speaking of retention, 93% of employees agree that onboarding is a crucial stage that helps a hire decide whether to stay or leave a company. The process is so sophisticated and time-conscious that the first 45 days of employment with a bad onboarding experience costs 20% worker turnover. The result? More money, time, and energy to spend looking for a replacement.
2. Higher Engagement and Productivity
Onboarding processes aim to acclimate the employee and make them aware of your goals, strategies, and vision. When a new hire gets these important ideologies right, they work harder towards realizing their goals. They engage with your experiments more, which leads to increased profits.
Engaged employees result in 41% lower absenteeism and thus faster, more efficient outputs. Moreover, companies with high employee engagement experience 21% more profits. The cherry on top? Higher morale, increased reputation, higher retention, and ROI.
3. Attracts More and Better talent
An employee experiencing a well-structured onboarding procedure immediately connects better with the work environment. When you provide a value-adding onboarding program, your hires know how much you care about them and their job roles.
Efficient onboarding causes satisfied employees to recommend firms to other people, leading ultimately to more talent and experience reaching out to you.
New talent can increase your company’s profits considerably by combating your competitors. Make sure you understand and implement how to retain them, too.
4. Boosts the Business’s Growth
Engaged employees add greatly to the culture, environment, and rapport of an organization. More significantly, engaged and happy employees as a result of valuable onboarding also increase companies’ earnings by a whopping 147%. The reason lies in employee satisfaction and reduced workplace stress, promoting presenteeism and productivity.
With a comprehensive onboarding program that leaves little room for doubts and reduced speed, new employees learn and work faster and realize their tasks better.
5. Higher Goal Realization
An efficient onboarding system makes an employee aware of what they’re doing. By telling them that their job is more than just a job and affects people directly (which is an integral part of an onboarding procedure), you make them feel valued and determined to reach their goals faster.
Familiarize your employee with your strategies, aims, and mission and make them feel like a part of your team, not just another element of the workforce. By doing so, your hires work for more than just money, and your business attains goals faster and more efficiently. The outcome is endless growth, profits, and impact.
HR Onboarding Solutions to Boost Business Growth
A study by Career Builder found that 36% of organizations do not have an onboarding process. 76% of HR managers agree that onboarding, wherever understood, is poorly used and highly underestimated. What is, then, the key to better onboarding that helps organizations realize the benefits we went through?
There are many secrets behind a successful onboarding program. You must have your new hire’s requirements ready to leverage before their first day. Buddies and good orientations are some important aspects successful onboarders use to maximize their employee retention and satisfaction.
Companies worldwide spend approximately $4000 on onboarding a new hire. However, simplifying and cutting down the program will not affect the efficiency of your program if you plan and implement it right.
Kytes provides a simple and secure solution that optimizes your onboarding procedure and makes your brand stand out amidst the crowd.
With an onboarding program that isn’t too lavish but still adds extraordinary value to your recruitment, you ace it with expertise.
Onboarding procedures should be efficiently planned and organized to avail the most onboarding process benefits. With outstanding advantages like higher retention, significantly reduced stress, and increased profits, companies will receive the ROI on onboarding sooner than they’d expect.
However, behind every successful onboarding program is a set of HR onboarding solutions that help organizations realize their goal of talent accumulation and retention.
Combining preparedness, orientation, and support, and Kytes’ smart planning and implementation of onboarding programs, you can ace the race of recruitment and take your business up a notch.