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The Cost of Not Having a Proper Onboarding Experience
| SEPTEMBER 21, 2023 |
Mary Grothe
Mary Grothe is the CRO at PNI•HCM (Payroll Network, Inc.). She is a faith-based leader, entrepreneur, global keynote speaker, the host of the podcast ‘Destination Remarkable’ and former contributor to the podcast, ‘Revenue Radio’. Mary began her sales career at a Fortune 1000 company, where she quickly advanced from an admin role to being the number one sales representative. By following her natural instincts to always put the customers first and listen to their needs, she was able to drive success for her clients and herself and brought in millions of dollars in revenue.
This article is part of Benefits Broker Confessional, where we talk shop with the leading minds in HR and break down the latest in benefits.
Onboarding experiences are a critical aspect of any successful business.
The process can either make or break an employee's perception of the company.
An effective onboarding experience not only helps new hires feel welcomed but also equips them with the necessary tools and knowledge to perform their roles effectively.
However, poorly executed onboarding could lead to high turnover rates, decreased productivity, and overall dissatisfaction among employees.
Table of Contents
The Cost of Not Having an Effective Onboarding Process
- Decreased Productivity Due to Inadequate Guidance
- Employee Morale Takes a Hit
- Increased Turnover Rates
The Impact of Poor Onboarding on Employee Retention
The Financial Implications of High Turnover Rates
Poor Onboarding: A Challenge Worth Tackling?
Why Companies Should Prioritize Onboarding Experiences
The Power of Effective Onboarding Programs
Building a Successful Onboarding Experience
Create A Comprehensive Guide for Each Step of Onboarding
Digital Solutions Enhance Employee Onboarding Process
The Role of HR in Onboarding New Employees
- Guiding Through Company Policies
- Facilitating Cross-functional Collaboration
- Incorporating Mentoring Programs
Benefits of Investing in Onboarding Software
Streamlining Processes with Automation
Saving Time & Resources through Digital Solutions
Better Employee Experience as Standard Practice
FAQs in Relation to Onboarding Experience
How do you explain the onboarding experience?
Why is it important to have a good onboarding experience?
What are the 4 C's of effective onboarding?
The Cost of Not Having an Effective Onboarding Process
When onboarding is not managed effectively, the business can suffer from reduced efficiency as new employees lack appropriate support while attempting to comprehend their roles and duties. The most prominent is diminished productivity as new hires grapple with their roles and responsibilities without adequate guidance.
1. Decreased Productivity Due to Inadequate Guidance
New employees often find themselves at sea when they do not receive comprehensive step-by-step instruction guides during their onboarding experience. This lack of direction leads them to spend more time deciphering tasks than executing them efficiently.
In addition, if individual teams can't handle onboarding effectively in isolation, cross-functional collaboration suffers greatly, leading to siloed departments that are unaware of how they contribute to the organization's overall goals.
2. Employee Morale Takes a Hit
A subpar employee onboarding process doesn't just affect performance; it also significantly impacts morale. New hires might feel overwhelmed by their massive to-do list or underprepared due to inadequate training, leading to feelings of stress and dissatisfaction that seep into every facet of their everyday experience within your organization.
Such negative experiences could lead employees to feel like fixing the way an organization handles its people is a challenge worth tackling—a sentiment that erodes job satisfaction levels over time.
3. Increased Turnover Rates
An ineffective employee onboarding directly impacts turnover rates negatively, as highlighted by SHRM (Society for Human Resource Management). If new hires perceive that an organization handles its people poorly or feels disconnected from company culture, especially during remote work scenarios where virtual meetings replace face-to-face interactions, they're much likelier to leave sooner rather than later.
The Impact of Poor Onboarding on Employee Retention
Employee retention is a significant concern for organizations, and the quality of an employee's onboarding experience plays a crucial role in it. If the onboarding process isn't challenging or fails to build rapport between new hires and their teams, employees may feel disconnected from the company's culture.
The Financial Implications of High Turnover Rates
A high turnover rate doesn't just disrupt organizational functioning; it also has substantial financial implications. The costs associated with replacing an employee include recruitment expenses such as advertising costs, interviewing time spent by existing staff members, training resources allocated for each new hire—the list goes on.
- Advertising Costs: This includes money spent posting jobs online or hiring recruiters.
- Interview Time: This refers to both tangible hours lost that could have been used productively elsewhere in addition to intangible losses like potential disruption caused during this period.
Research suggests these combined factors could cost anywhere from six months' salary for entry-level positions up to two years' salary for senior executive roles.
Poor Onboarding: A Challenge Worth Tackling?
If we want our businesses to thrive, tackling poor onboarding should be a top priority. It involves developing comprehensive orientation programs, providing step-by-step instruction guides, fostering cross-functional collaboration, and scheduling regular virtual meetings, among other strategies, all aimed towards creating successful employee experiences right off the bat, thereby reducing overall turnover rates significantly.
Why Companies Should Prioritize Onboarding Experiences
The onboarding experience is a pivotal moment in an employee's journey with your organization. It lays the foundation for their entire employee experience and has far-reaching impacts on productivity, engagement, and overall job satisfaction.
The Power of Effective Onboarding Programs
A robust onboarding program provides new hires with clear expectations, a comprehensive understanding of job duties, as well as a firm grasp of company policies. This not only helps to build rapport between individual teams but also reduces any confusion that could potentially impact performance adversely.
- Onboard Thousands Effectively: A study by Gallup suggests companies who invest time into crafting successful onboard experiences retain top talent long-term more successfully than those without structured programs.
- Digital Transformation: In today's age, where virtual meetings are commonplace due to remote work culture, technology like PNI•HCM streamlines this massive task list by automating profile creation or assigning initial tasks, thereby reducing dependency upon HR staff for trivial queries.
- Cross-Functional Collaboration: By digitizing these processes, you provide new hires with step-by-step instruction guides, which they can refer back to at any point during their tenure, thus enhancing their everyday work experience while fostering cross-functional collaboration across different departments.
Building a Successful Onboarding Experience
The onboarding process is more than just extending a job offer and working through an extensive to-do list. It's about fostering an environment that encourages connection between the new employee and the organization.
Create A Comprehensive Guide for Each Step of Onboarding
An effective onboarding experience starts with clear, step-by-step instructions outlining roles, responsibilities, and how each individual fits into cross-functional collaboration within your company. This can help alleviate any potential confusion or anxiety associated with starting in a new role.
Digital Solutions Enhance Employee Onboarding Process
In our digital age, it's crucial to incorporate technology solutions like isolved People Cloud powered by PNI•HCM, which automates tasks such as profile creation and task assignment while providing real-time feedback during the entire employee experience. This not only streamlines processes but also ensures consistency across all levels of your business operation—especially when individual teams can't handle onboarding due to scale or complexity issues.
The Role of HR in Onboarding New Employees
Human Resources (HR) plays a vital role in shaping the onboarding experience. They are responsible for introducing new hires to company culture and values, which is crucial for creating an inclusive work environment.
In addition, they ensure that all necessary paperwork related to employment gets completed accurately and promptly—from tax forms to confidentiality agreements.
1. Guiding Through Company Policies
A major part of HR's job during the onboarding process involves acquainting newcomers with company policies and procedures. This includes everything from office etiquette rules to more complex issues such as data security protocols or conflict resolution processes.
This step-by-step instruction guide provided by HR not only sets clear expectations but also serves as a reference point throughout their tenure at the organization.
2. Facilitating Cross-functional Collaboration
In larger organizations where individual teams can't handle onboarding alone, it falls upon HR's shoulders to facilitate cross-functional collaboration—this could be through arranging introductions or setting up virtual meetings between different departments within the firm.
This helps new employees establish connections and build relationships with colleagues from various teams, making their integration smoother right from the start.
3. Incorporating Mentoring Programs
- PNI•HCM believes mentoring programs form an integral part of any successful onboarding process.
- Mentors offer support during the initial weeks after job offer acceptance, helping navigate what may seem like a massive to-do list initially while ensuring a consistent positive employee experience throughout this phase.
4. Acknowledging Some Employees Can’t Afford Upfront Expenses
HR should consider offering a form of Earned Wage Access, like ZayZoon, which can help employees gain access to their pay before they begin work if they’re asked to cover expenses for uniforms, a specific type of shoe, or even to afford the gas to drive to work for their first day. Not only does Earned Wage Access (EWA) help employees during onboarding, but it gives them a lifeline throughout their employment by granting them access to a percentage of their net earned wages during a pay period.
Remember: A challenge worth tackling head-on will always yield fruitful results.
Benefits of Investing in Onboarding Software
A successful onboarding process can be a challenge worth tackling for companies. One solution to fix onboarding altogether is investing in efficient HCM software like PNI•HCM's Onboard & Develop technology.
This investment offers several benefits, from streamlined processes and resource savings to enhancing the employee experience and fostering cross-functional collaboration.
Streamlining Processes with Automation
The automated features offered by such software help create consistent onboarding experiences across all departments. This proves particularly beneficial when individual teams can't handle the extensive tasks involved in managing new hires' profiles, tracking their progress, or providing feedback effectively.
Saving Time and Resources through Digital Solutions
An effective digital experience during the initial stages sets up employees for success right from day one. A job offer followed by overwhelming paperwork isn't ideal; instead, using step-by-step instruction guides digitally helps build rapport while saving significant time and resources that could otherwise be invested in other crucial areas of your business operations.
Better Employee Experience as Standard Practice
Incorporating technology not only enhances everyday work experiences but also plays a vital role in setting expectations about how an organization handles its workforce management throughout their employment journey. The result? A positive working environment where every interaction contributes to building stronger relationships between employers and employees alike.
FAQs in Relation to Onboarding Experience
How do you explain the onboarding experience?
The onboarding experience is the process of integrating a new employee into an organization. It involves training, introducing them to company culture, and providing necessary resources for their role.
Why is it important to have a good onboarding experience?
A well-structured onboarding experience helps boost productivity by equipping employees with essential skills and knowledge. It also enhances retention rates by fostering positive first impressions about the organization.
What are the 4 C's of effective onboarding?
The four Cs: Compliance (basic legal/policy-related rules), Clarification (clear job roles/duties), Culture (organizational norms/values), and Connection (interpersonal relationships/networks). They form an integral part of ensuring successful employee assimilation.
In Conclusion
In conclusion, prioritizing effective onboarding experiences can make all the difference between a thriving business and one struggling to retain its workforce.
isolved People Cloud powered by PNI•HCM, offers you exactly what you need—a comprehensive Human Capital Management (HCM) solution that covers every aspect of employee lifecycle management, including creating vibrant employee onboarding experiences.
