The Business Case for Investing in Onboarding Programs
The Business Case for Investing in Onboarding Programs

The Business Case for Investing in Onboarding Programs

Many companies treat onboarding as a two-hour orientation class for new hires, but that mind-set overlooks the importance of providing employees with a memorable start. In some cases, organizations treat onboarding as training, but there is a distinct difference. Onboarding is how you engage and nurture the relationship with a new employee.

As HR teams are focused on more strategic initiatives, HR leaders must communicate to the C-Suite why investing time and money in onboarding is a best practice for supporting bottom-line business goals through retention.

Here’s a look at the impact and importance of a thorough onboarding program.

What is onboarding?

Onboarding is the process of integrating new associates into an organization and providing them with the tools, resources and knowledge to quickly become engaged and productive. It starts with introducing a new hire to colleagues, providing a tour of the office, introducing policies and procedures and ensuring equipment is properly installed and ready for the new hire’s first day. This process actually begins well before—and extends much further beyond—mere orientation.

An effective onboarding program not only prepares an associate for his or her new role but also increases retention rates, productivity, employee engagement and performance.

The first 90 days on the job are critical to the success of new associates and to their commitment to an organization.

Powerful statistics

Why is onboarding so important? The numbers don’t lie.

  • On average, the cost of losing an employee is nearly $20,000 per associate
  • High turnover not only leads to additional recruiting and training expenses but also shows up as lower productivity for other associates who are picking up the slack during the gap of hiring a replacement and getting him or her up to speed.
  • 46% of new hires leave a job within the first 18 months of employment
  • Organizations with a strong onboarding process improve new hire retention by 50%, yet 35% of companies spend $0 on onboarding
  • 58% of employees are likely to stay at a company for 3 years if they experience a great onboarding program

An effective onboarding program not only prepares an employee for a new role, but also increases retention, productivity, engagement and performance.

In addition to the impact of losing one employee, turnover can affect the morale of other associates. As morale declines, so too does the quality of work and how they treat your customers, thus tying directly to retention and other business metrics that affect profitability. The faster an associate understands the culture of your organization, the business operations and his or her specific role in meeting organizational goals, the more quickly the employee becomes engaged and productive.

As you review current practices and look to build on your current onboarding program, use this resource to create a great first impression for your new hires.

Sources: Fast Company, Forbes, HR Bartender, Impact Instruction, Interactive Services, UrbanBound

More to Discover

COVID & the Future of Work: Insights from Paycor’s C-Suite

COVID & the Future of Work: Insights from Paycor’s C-Suite

The long-term future is impossible to predict, but what might all this mean, and how will work change, over the next year?In Paycor’s latest report, our Chief Executives and Group Leaders consider how SMBs will recruit, manage their workforce, optimize benefits and foster employee experience in the new normal of 2020.Download our guide to learn more.

Webinar: Remote Work 2020: Keeping Culture Strong Post COVID-19

Webinar: Remote Work 2020: Keeping Culture Strong Post COVID-19

Workplaces across the country will never be the same post COVID-19. Some employees will work from home permanently. Others may slowly return to the office but feel the impacts of social distancing and newly configured spaces. Amidst all the change and uncertainty, culture has never been more important. In this session, we will offer tips to help your culture thrive in this new normal.Speaker: Melanie Booher Melanie Booher is a proactive people connector, genuine leader, change agent, culture-champion and entrepreneurial business coach. Her passion lies in generating meaningful change in the areas of HR, People Operations, Talent Management, Leadership Development, Business Strategy and Culture-Shaping.

Webinar: 5 Ways to Cheer Up Your Employees

Webinar: 5 Ways to Cheer Up Your Employees

During this difficult time of uncertainty many employees feel disconnected from their coworkers and uncertain about their futures. As a leader there are a few things you can do to engage your employees who are working from home. Join us as we cover 5 ways to cheer up your employees. Speaker: Colin Ethier As manager, content marketing, Colin is responsible for creating innovative content and webinar strategies that drive demand and showcase Paycor’s differentiating expertise in the HCM market. Prior to his role in content marketing, Colin supported internal communications at Paycor.

Is Your Organization Ready for Employee Self-Service?

Is Your Organization Ready for Employee Self-Service?

HR Isn't Being Replaced Is Self-Service Right for You Benefits of Self-Service Must-Have Features What is Employee Self-Service? At its core, employee self-service (ESS) gives workers access to their personal records and information. Through employee self-service portals (housed in HRIS systems), employees can change their contact and banking information, access their payroll, schedules, benefits enrollment and more, without HR being involved. Why Some HR Leaders are Skeptical of Automating HR Processes To many HR leaders, the empowerment of ESS means the golden age of HR has arrived. Instead of spending hours on administrative tasks, HR leaders can now focus on strategic initiatives like recruiting, retention and employee development....