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01 October 2018
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3 minutes

Five reasons employee onboarding has a long-term impact

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 them on the first day and initial training, the employee forms opinions about how much they are valued and how much they can achieve.

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 the top five reasons a strong employee onboarding process 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 eBook.)

Lower staff turnover

As much as 20% of staff turnover happens within the first 45 days of employment – and that affects profitability as well as morale. It can cost as much as $20,000 to replace a typical employee when you consider recruitment costs and the drain on other employees’ time.

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, your new employees will be happier, feel more engaged in the mission, and are 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 as well. This begins on day one. For instance: almost half of new employees who fail to meet their initial performance milestones didn’t have 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 a benefits plan, pensions, payroll and much more.

By not doing these tasks in a timely manner, or even making errors such as misspelling names, it can inconvenience and personally affect your employees and even their families. They may even call into 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 USA, you need to make sure your welcome pack isn’t full of references that won’t be understood in your Polish office.

Likewise, in many parts of Europe, referring to ‘Christmas’ is relatively uncontroversial, but in the USA the preference is often to use ‘the holidays’; while in the Middle East and many parts of Asia, 25 December 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, Western companies have tended to expect their international employees to adapt to their cultures. But with trends towards globalisation and cultural sensitivity, businesses are understanding the value of tailoring their employment practices to a range of cultures. By localising your onboarding, you give new employees the best chance possible to engage and thrive in 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 around the globe to get started more efficiently and more effectively. We 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.

Download a copy of this eBook to discover:

  • why employee on boarding is critical to talent management strategy
  • the importance of supporting employees in-country
  • examples of global variations in workplace laws and customs.

If you’re looking to outsource your HR administration, check out our HR Administration Services With capability in over 100 countries, we can help you handle your local HR administration and compliance – globally.

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