5 reasons employee onboarding has long-term impact
Article 3 min read

5 reasons employee onboarding has long-term impact

09 October 2018

A new employee’s impression of your company starts before they walk through the door. From the moment you make an offer, through contract negotiations, all the way to greeting on the first day and initial training, the employee forms opinions on how much they are valued and how much they can achieve.

Yet just 20% of all organisations have a systematic and organised approach to onboarding that goes beyond a simple checklist of things to tell a new hire – and this can be detrimental to both the employee and the company. 

Here are just five reasons why strong employee onboarding is vital to the long-term health of your workforce and your company. (And you can read more about the importance of getting employees started in our new eBook.) 

Lower staff turnover

As much as 20% of staff turnover happens within the first 45 days of employment - and that costs you. It can cost as much as $20,000 to replace an average employee when you consider recruitment costs and the drain on existing staff’s time.

Yet, half of all organisations with a formalised onboarding process boast 50% greater new hire retention. By committing to the onboarding experience and getting it right - right for the company, the country and the culture - your new staff will be happier, feel more engaged in the mission, and more likely to stick around.

Higher performance levels

It is not solely the employee’s responsibility to ensure optimum performance – the company needs to put the right conditions in place. This begins on day one. For instance: almost half of new employees who fail to meet their initial performance milestones didn’t have a formal onboarding. For those who did have formal onboarding, more than three-quarters get to that initial milestone. 

Higher job satisfaction

If employees feel they are learning, growing and are supported in your organisation, they’re less likely to move on quickly - some studies say a strong onboarding process can make you less likely to lose more than 60% of your entire workforce within four years.

It goes without saying that when you feel confident in what you’re doing, you are more likely to be satisfied with your work. 

It’s personal

As your new starter joins the organisation they expect to be given various pieces of information including benefits plan, pensions, payroll and much more.

By not doing these tasks in a timely manner or even making frequent errors such as names spelt incorrectly, it can inconvenience and personally impact on your employees and even their families lives. And not to mention they’ll question the professionalism of your company.

Remember to keep it local

A great onboarding process in one country might be a terrible one in another. For this reason, all onboarding programs should be checked for anything which might be lost in translation. For example, if your corporate HQ is in the US, you need to make sure your welcome pack isn’t full of references they won’t understand in your Polish office. In many parts of Europe, referring to “Christmas” is relatively uncontroversial, but in the US the preference is often to use “the holidays”; while in the Middle East and many parts of Asia, December 25 may be just another day in a normal working week. And then there is the issue of employment regulations: statutory overtime, maternity leave and other regulated employment matters will differ from country to country. 

Historically, companies in Europe and North America would expect their international counterparts to adapt to their cultures. But as economic activity shifts to the East, more businesses are understanding the value of tailoring their onboarding programs to other cultures. By localising your onboarding, you give new employees the best chance possible to engage and thrive with your company for a long time to come.

How we can help

We recognise that it’s not always possible for remote or smaller offices to have a local HR presence.

TMF Group can help your new employees to get started more efficiently and more effectively. Download our eBook to discover the importance of HR administration, or contact one of our local experts. With operations across the world, TMF Group can act as an extension of your HR department, providing administrative support at a local level and keeping you compliant - from getting started all the way through to moving on.

Categories
Written by

Darren Beal

Portfolio Director

Insights and updates delivered to your inbox.

Sign up to receive a weekly round up of posts that matter most to you. 

Sign up now