The critical period for new hires during which they get acquainted with the organization’s values, culture, systems, and processes is referred to as employee onboarding. It should begin from the moment a candidate signs their offer letter and continue until the employee is fully ramped up and productive. Many organizations miss out on the full benefits of strategic employee onboarding because they focus only on administrative tasks.
Employee onboarding strategies go beyond administrative new hire paperwork and account provisioning to include social and cultural acclimatization as well as a reduction in time to peak performance.
The Advantages of Strategic Onboarding
Job growth is strong, and skilled workers are in high demand. Because your employees have numerous employment options, it is critical that you do everything possible to engage and retain them by delivering a thoughtful employee experience. A well-structured onboarding program is essential in this puzzle because it allows you to create a great first impression as candidates become team members.
Indeed, according to a Human Capital Institute report, teams that invest in onboarding are more likely to see the following outcomes:
- Reduced turnover
- Increased levels of participation
- Reduced time required for mastery
- Savings on costs
- Building a positive candidate experience
- Integration into corporate culture is simplified
- Improved performance
- Increased new hire morale and satisfaction
- A higher level of satisfaction with hiring managers
- Recognize and close skill gaps
Effective onboarding processes enhance new hire retention by 82%, but employees who have an unpleasant onboarding experience are twice as likely to seek new employment in the near future. According to the Society for Human Resource Management’s (SHRM) Human Capital Benchmarking Report, the average cost per hire is $4,129 and the average time to fill a post is 42 days. The report reemphasizes the importance of investing in a structured onboarding program.
Additionally, a well-designed onboarding process boosts productivity by over 70%. Employees that are more familiar with their organization and role, have increased awareness of their tasks and objectives. They also engage with supervisors on a more timely basis and can attain higher levels of productivity faster. While the key benefits are related to productivity, culture, and retention, there is also a distinct advantage in terms of compliance and task automation enabled by employee onboarding software.