I was struck recently by a really powerful statistic. A good onboarding process can improve retention by 82%, according to Glassdoor. That’s a spectacular number, one which many businesses can’t afford to ignore. If someone told you they could improve a business-critical metric by 82% by making a few quick changes, I bet you’d jump on it! Combine this with the cost of turnover per person – up to 200% of their salary in some cases – and you might have a big business win. Today, we’re going to go into four quick tips that can make your onboarding or orientation better, and help you realize a great return on a very small investment.
Especially these days, when hiring is at a premium, many companies are finding success in reevaluating their onboarding process. There are still many challenges for businesses to overcome out there in the job market (i.e., turnover, culture, engagement, remote work). However, being able to attract, hire and retain a top employee can be a massive business differentiator. Even for a very small business (maybe even especially for a small business), taking a second to assimilate new folks coming in is a very good idea.
Give the Gift of Time
A good onboarding or orientation eases new employees into their job gradually. It lets them learn about the company, get a good understanding of their new job, meet the team, etc. It’s tough for a completely new employee to step right into the fire with no resources, and generally results in turnover. So taking a second to let someone get their bearings helps a lot.
Culture: Rinse and Repeat
Companies benefit from formally discussing their great organizational culture, illustrating it in action, and then reinforcing it with more conversation. A great culture should not be a secret; it’s a wonderful thing and an asset. It should definitely be an intentional part of a new employee’s early experience with the company.
30-60-90 Day Plan
Formalizing a training and development strategy is an excellent way to make sure the employee is getting what they need through that dangerous first 90-days. A 30-60-90 doesn’t need to be a fancy document. It should just include any necessary training, people to connect with, and any checkpoints or milestones. The important part is the check-in. This is a good time to discuss how the new employee is doing, what help they need, what challenges they’re facing and how a manager can help. One caveat- as with many things, managers should try to establish a cadence of following up. The only thing worse than not having a plan is having one that’s not being used. As the new employee gets busy it may go by the wayside, and so does its positive effect on turnover.
Mentorship and Training
A formal mentor is a big help to a new employee starting their new job, so selecting the right person to wear that hat is important. The mentor can be a trainer, providing guidance to a new employee on the skillset they need to be successful. Broadly, though, a mentor’s responsibility is to represent the culture of the company to a new employee. They provide a new employee with an instant resource, someone to call when in doubt, a guide in times of uncertainty. When the chips are down, they might be the one a new employee calls when they’re thinking about leaving – and they might also be the one to save them.
Start Off on the Right Foot!
Are there more ways to make an onboarding great? Of course! But these are four quick tips a business can implement for cheap right away with many positives. Cost savings in hiring. Revenue and profit improvements as employees stick around long enough to get good at their jobs. Improved employee engagement as people work together better, appreciate each other, and reinforce the culture. Reduced burnout and stress as job openings get filled and people can focus on their own work. The list goes on. That’s a lot of positives, for a simple and easy process. And an 82% improvement in retention when the cost of turnover can be astronomical? That’s a good investment.
Patrick Ingham has been helping business leaders deliver better results through the lens of their people for almost 20 years. He is the founder of John Patrick Consulting Group, an HR, people ops and talent optimization consulting agency. For more tips and tricks on how to optimize your business performance through people operations, check out his other blogs or reach out for a free 1:1 consultation today.