fbpx

Is Your Onboarding Process Your Most Expensive Mistake?

By Bethany Whitted

Is Your Onboarding Process Your Most Expensive Mistake?

By Bethany Whitted

Onboarding is one of the most critical components to your company’s success – and one of the most expensive mistakes you can make. Fail to effectively onboard your new hires and you will likely be replacing them in just a few months’ time. 

In today’s world, people switch jobs if they aren’t satisfied. Highly skilled or talented employees have many options for work. That is why in the first six months, it’s imperative that you do all within your power to engage your new employee and set them up for success. Onboarding is one of the most fundamental, and often times rather simple means to accomplishing this.  

Consider this – first impressions hold a lot of weight. We make many decisions based on first impressions. If you walk into a restaurant that maybe looks like it hasn’t seen a health inspector for some time, you’ll likely turn around and find another option for lunch. The same is true in onboarding. If a new hire gets a sense that your onboarding process isn’t a priority, hasn’t been updated in a while, or maybe is too much or too little – they will make a decision about your organization. According to a Glassdoor study, a strong onboarding process can improve new hire retention by 82%. 

Your onboarding process is your new hire’s first impression of what it will be like to work for and with you. Before we get into how to establish a strong onboarding process, let’s dig a little deeper into why employees may choose to leave. 

Why do Employees Quit in the First Three Months? 

Here are six common reasons why employees quit within the first 3 months: 

  1. Job wasn’t what they expected. 
  2. Disconnect to company culture, mission, and objectives. 
  3. Loneliness. 
  4. Overbearing management. 
  5. Overwhelmed by expectations. 
  6. Boredom. 

You’ll notice that all of these are heavily influenced by the employer – and all of them can be addressed in your onboarding process. As we minimize the chances of these 6 things occurring, we can expect increased retention and engagement. 

Developing an Onboarding Process that Wins 

So what does a successful onboarding process look like?  

The best onboarding processes: 

1. Retain employees.

     A) According to Bamboo HR’s employee onboarding survey of over 1000 employed US workers, 31% of people have left a job within the first six months, with 68% of those departing within three months. A high turnover rate is incredibly expensive. If an organization cannot retain employees at a high rate, they end up spinning their wheels in a constant state of hiring and training without reaping the benefits of their employees. 

2. Improve engagement. 

     A) You don’t just need to retain employees; you need them to be highly engaged and productive. When they are not, the company loses money. Setting a strong foundation within the first few months of employment maximizes your new hire’s engagement with your organization.  

3. Build the company reputation. 

     A) Onboarding is a way to set your company apart as one that invests in its employees. A bad onboarding experience leads employees to not only quit, but spread the word that your company was not good to work for. A damaged reputation is another cost of a failed onboarding experience. 

All of these pieces are easily accomplished when you consider the 4 C’s to onboarding: 

1. Compliance 

     A) This is the not so exciting but necessary part, where employees learn the policies, procedures, technology, and communication systems of the organization. This is practical knowledge needed for the job. It’s important to keep this part of onboarding streamlined and hands-on, focusing on the most pertinent information versus every single detail. 

 2. Clarification 

     A) Clearly communicate expectations of the new hire. Following onboarding, they should be crystal clear on exactly what they are supposed to accomplish to avoid the expectation gap and feelings of being overwhelmed.  

 3. Culture 

     A) Teach and demonstrate your company culture throughout the onboarding process. Share your organization’s mission along with examples of how you live it out, being mindful of walking the walk.  

 4. Connection  

     A) In the first six months, there should be a high priority on ensuring that the employee is socially connected. Ideally, after six months an employee will feel known, accepted, and have a friend at work. When employees feel connected, they will bring their full selves to work, resulting in increased engagement and retention. 

Maximizing your onboarding process is one of the most effective tools you have to begin boosting engagement, retention, and performance. By setting clear expectations, immersing new hires into your company culture, and having a clear plan in place to coach and mentor each employee to be their best you are setting your organization apart from the crowd. Don’t waste your first 6 months with your new hire – or it may be your last! 

Onboarding is one of the most critical components to your company’s success – and one of the most expensive mistakes you can make. Fail to effectively onboard your new hires and you will likely be replacing them in just a few months’ time. 

In today’s world, people switch jobs if they aren’t satisfied. Highly skilled or talented employees have many options for work. That is why in the first six months, it’s imperative that you do all within your power to engage your new employee and set them up for success. Onboarding is one of the most fundamental, and often times rather simple means to accomplishing this.  

Consider this – first impressions hold a lot of weight. We make many decisions based on first impressions. If you walk into a restaurant that maybe looks like it hasn’t seen a health inspector for some time, you’ll likely turn around and find another option for lunch. The same is true in onboarding. If a new hire gets a sense that your onboarding process isn’t a priority, hasn’t been updated in a while, or maybe is too much or too little – they will make a decision about your organization. According to a Glassdoor study, a strong onboarding process can improve new hire retention by 82%. 

Your onboarding process is your new hire’s first impression of what it will be like to work for and with you. Before we get into how to establish a strong onboarding process, let’s dig a little deeper into why employees may choose to leave. 

Why do Employees Quit in the First Three Months? 

Here are six common reasons why employees quit within the first 3 months: 

  1. Job wasn’t what they expected. 
  2. Disconnect to company culture, mission, and objectives. 
  3. Loneliness. 
  4. Overbearing management. 
  5. Overwhelmed by expectations. 
  6. Boredom. 

You’ll notice that all of these are heavily influenced by the employer – and all of them can be addressed in your onboarding process. As we minimize the chances of these 6 things occurring, we can expect increased retention and engagement. 

Developing an Onboarding Process that Wins 

So what does a successful onboarding process look like?  

The best onboarding processes: 

1. Retain employees.

     A) According to Bamboo HR’s employee onboarding survey of over 1000 employed US workers, 31% of people have left a job within the first six months, with 68% of those departing within three months. A high turnover rate is incredibly expensive. If an organization cannot retain employees at a high rate, they end up spinning their wheels in a constant state of hiring and training without reaping the benefits of their employees. 

2. Improve engagement. 

     A) You don’t just need to retain employees; you need them to be highly engaged and productive. When they are not, the company loses money. Setting a strong foundation within the first few months of employment maximizes your new hire’s engagement with your organization.  

3. Build the company reputation. 

     A) Onboarding is a way to set your company apart as one that invests in its employees. A bad onboarding experience leads employees to not only quit, but spread the word that your company was not good to work for. A damaged reputation is another cost of a failed onboarding experience. 

All of these pieces are easily accomplished when you consider the 4 C’s to onboarding: 

1. Compliance 

     A) This is the not so exciting but necessary part, where employees learn the policies, procedures, technology, and communication systems of the organization. This is practical knowledge needed for the job. It’s important to keep this part of onboarding streamlined and hands-on, focusing on the most pertinent information versus every single detail. 

 2. Clarification 

     A) Clearly communicate expectations of the new hire. Following onboarding, they should be crystal clear on exactly what they are supposed to accomplish to avoid the expectation gap and feelings of being overwhelmed.  

 3. Culture 

     A) Teach and demonstrate your company culture throughout the onboarding process. Share your organization’s mission along with examples of how you live it out, being mindful of walking the walk.  

 4. Connection  

     A) In the first six months, there should be a high priority on ensuring that the employee is socially connected. Ideally, after six months an employee will feel known, accepted, and have a friend at work. When employees feel connected, they will bring their full selves to work, resulting in increased engagement and retention. 

Maximizing your onboarding process is one of the most effective tools you have to begin boosting engagement, retention, and performance. By setting clear expectations, immersing new hires into your company culture, and having a clear plan in place to coach and mentor each employee to be their best you are setting your organization apart from the crowd. Don’t waste your first 6 months with your new hire – or it may be your last! 

Post Categories: Insights
Date Published: Sep 15, 2021
Post Categories: Insights
Date Published: Sep 15, 2021