Why Is Onboarding Important in the Workplace Today

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Onboarding is more than just a one-time process, it's an ongoing effort to ensure new hires feel welcome, supported, and equipped to succeed in their roles. In fact, 58% of new hires say they would leave their job if they didn't receive adequate onboarding.

According to research, a well-designed onboarding process can lead to a 25% increase in employee retention and a 50% reduction in turnover. This is especially important in today's competitive job market, where talent is scarce and turnover can be costly.

A successful onboarding process also has a direct impact on employee engagement, with 70% of employees saying they're more likely to stay with their current employer if they feel they're being properly onboarded. This sets the tone for a positive and productive work experience.

Why Onboarding is Important

Onboarding is a critical process that sets the tone for a new hire's experience at your organization. It's not just about getting employees through the door, but about giving them a strong start that will benefit both them and your company.

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A positive onboarding experience can lead to decreased turnover, enhanced productivity, higher employee satisfaction, greater employee engagement, increased revenue, and an improved reputation. This is according to research and conventional wisdom, which suggests that employees get about 90 days to prove themselves in a new job.

Here are the four distinct levels of onboarding, from least to most effective, as identified by Talya Bauer, Ph.D.:

  • Compliance: HR teaches new employees about legal and policy-related issues.
  • Clarification: HR makes sure that new employees understand their new role along with the related expectations.
  • Culture: HR focuses on exposing new hires to the organizational values and norms.
  • Connection: HR connects new hires to personal relationships and information networks.

In fact, a Harvard Business Review study found that the quality of onboarding can significantly impact a new hire's decision to stay with the company.

The Onboarding Process

The onboarding process is a critical component of ensuring a positive experience for new hires. It's a comprehensive process that extends far beyond the first day of a new hire, continuing until they've fully adjusted to their role and team.

The main difference between onboarding and orientation is that onboarding refers to any action that helps new hires understand how things work in their new work environment, get acquainted with the company culture, and feel welcomed and valued in their team. Orientation, on the other hand, is the first step of onboarding, where new hires learn the basics of their environment.

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A good onboarding program can last up to 12 months, allowing employees to build confidence in their new role during their first few weeks or months of employment. This process may include one-on-one meetings, independent learning and development modules, team-building exercises, and employee handbooks or task-specific guides.

Here are some key elements to consider when creating a successful onboarding process:

  • One-on-one meetings
  • Independent learning and development modules
  • Team-building exercises
  • Employee handbooks or task-specific guides

It's essential to customize the onboarding experience to employees' job functions, necessary skill sets, and your organization's culture and goals. No two companies are the same, and no two onboarding processes should look the same either.

By following industry best practices for effective onboarding and customizing the process to your organization's needs, you can create a positive onboarding experience that sets the stage for an exciting and hopefully extensive career within your organization.

Consequences of Poor Onboarding

A failed onboarding process can lead to significant direct costs, including lost interviewer hours, wasted internal recruitment resources, training costs, and paid invoices to recruitment agencies.

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The cost of a bad hire can be substantial, not only in terms of financial expenses but also in terms of impacting the team's morale and productivity.

Lost production, re-advertising the job, and brand damage limitation can also occur when an employee fails to work out.

New hires who don't receive the necessary support and guidance may struggle to perform their jobs effectively, leading to frustration and disengagement.

A poorly executed onboarding process can result in new hires feeling disconnected from the company culture and values, leading to a lack of commitment and loyalty.

Best Practices for Onboarding

Onboarding is a critical process that sets the tone for a new hire's experience in your organization. A simple orientation is not enough in today's competitive climate, as it's about acclimating and integrating new hires so they feel prepared, supported, and connected within your organization.

To create a positive onboarding experience, commit to making it fun and effective. At Unboxed Training & Technology, we develop employee onboarding training that's tailored to your organization's needs, increasing efficiency, reinforcing your culture, and providing the confidence new hires need to operate successfully.

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The onboarding process doesn't end after the first week; it's essential to ensure new hires have enough work to do and a plan to assign tasks to help build confidence. Their manager should have a plan to support their smooth integration into the team, checking in with both the new hire and their manager after two weeks and at the end of the new hire's first month.

An onboarding checklist provides a loosely-structured schedule that prioritizes the most important aspects of welcoming a new hire, helping them gain confidence about their new role and environment. It's a great tool to make a strong first impression as an efficient, organized, and thoughtful place to work.

To create a comprehensive onboarding strategy, prioritize the most important aspects of welcoming a new hire, such as providing them with a copy of the onboarding checklist, so they know what to expect. This will improve the initial employee experience and make a positive impression.

Here are the four key steps to a successful onboarding process:

  • 1. Communicate with new hires regularly
  • 2. Keep it up (assign meaningful work and check in regularly)
  • 3. Use an onboarding checklist to prioritize the most important aspects
  • 4. Ensure a smooth integration into the team

By following these best practices, you'll be well on your way to creating a positive onboarding experience that sets your new hires up for long-term success.

Business Case

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Having a structured onboarding process or program is crucial for any organization. It's not just about getting new hires through the door, but about setting them up for success and making them feel valued.

Statistics show that 69 percent of employees are more likely to stay with a company for three years if they experience great onboarding. That's a significant retention rate boost.

A structured onboarding program can also lead to increased productivity. Organizations with a standard onboarding process experience 50 percent greater new-hire productivity.

In fact, new employees who went through a structured onboarding program were 58 percent more likely to be with the organization after three years. That's a huge difference in employee retention.

Here are some key statistics on the value of a structured onboarding process:

By investing in a formal onboarding program, organizations can reap significant benefits, including improved employee retention rates, increased productivity, and a positive impact on the bottom line.

Career Development

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Onboarding is more than just a process of getting new hires up to speed on their job responsibilities. It's about showing them a structured way forward and giving them opportunities for growth.

Pal's Sudden Service, a small Southern fast-food chain, has a 1.4% turnover rate for assistant managers, which is incredibly low. Ninety percent of its employees are part-time, and 40 percent are between the ages of 16 and 18.

New employees at Pal's receive 120 hours of training before they're allowed to work on their own, and every employee has to prove their competence in their role through a certification process. This experience generates loyal employees who create loyal customers.

Savvy employers can build career development into the orientation process by showing new hires how they can contribute to the organization while advancing their own career goals. This can be done by surveying new employees for feedback to ensure their expectations are being met.

Weekly check-ins with new hires allow for course corrections and send the message that the organization cares about them and is invested in their growth. This approach shows that the organization values its employees' growth and well-being.

What's the Difference Between Orientation and?

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Companies often confuse orientation and onboarding, but they're two separate processes. Orientation is typically a one-time event that introduces new employees to the company culture, policies, and procedures.

Many companies rely on both orientation and onboarding to properly prepare and train new employees. Onboarding, however, is a more comprehensive process that continues beyond the initial orientation.

It's essential to note that orientation and onboarding are distinct processes, and companies should not use them interchangeably. By understanding the difference, businesses can create a more effective onboarding process that sets new employees up for success.

Measuring the Effectiveness of Onboarding

A Harvard Business Review study from April 2022 highlights the role onboarding has in ensuring a positive experience for new hires, with the quality of onboarding significantly impacting their decision to stay with the company.

To measure the effectiveness of onboarding, reporting is crucial. This involves surveying new hires' satisfaction levels, social integration, collaboration, and engagement levels.

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Regular reporting, such as every 1,3,6, 9 months, is essential to ensure valid and consistent data. Improving the onboarding program will in turn help to sustain a better retention rate.

Reports can track the progress of the new hire and identify areas of improvement. The onboarding team can use reports to ensure that new employees are meeting their targets and deadlines.

According to the CIPD, half of all senior outside hires fail within 18 months in a new position, highlighting the importance of effective onboarding in achieving long-term success.

By tracking metrics such as time-to-productivity, retention rates, and employee satisfaction, you can identify areas of improvement and measure the overall success of the onboarding program.

In Fortune 500 companies alone, about 500,000 managers take on new roles each year, making it essential to have a robust onboarding process in place to ensure their success.

Ongoing Recruitment and Onboarding

The recruitment process should be ongoing, starting from sourcing the perfect candidate and ending when they're 100% embedded into the organisation through effective onboarding programs.

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It's essential to preserve relations across the board, involving recruiters, HR, hiring managers, senior management, and candidates, to avoid misaligned recruiting and poor employee relations.

Careful planning and execution are crucial, starting with identifying the talent needs of the organisation and developing a sourcing strategy to attract the right candidates.

An effective onboarding program should provide the new employee with a comprehensive introduction to the company's culture, values, policies, and procedures, and offer the necessary tools, resources, and training to help them succeed in their new role.

Various departments must work together to ensure the recruitment process is effective, and the right candidate is identified for the role.

Frequently Asked Questions

What are the 5 C's of onboarding?

The 5 Cs of onboarding are Clarity, Compliance, Culture, Connection, and Check-In, which form the foundation of a successful onboarding process. These pillars empower new hires to navigate their journey with confidence and ease.

What is the main objective of onboarding?

The main objective of onboarding is to welcome and integrate new team members, making them productive and motivated contributors to the team. This process helps them understand their role, responsibilities, and how they can make a meaningful impact.

Jeannie Larson

Senior Assigning Editor

Jeannie Larson is a seasoned Assigning Editor with a keen eye for compelling content. With a passion for storytelling, she has curated articles on a wide range of topics, from technology to lifestyle. Jeannie's expertise lies in assigning and editing articles that resonate with diverse audiences.

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