Do you know which components of an onboarding system lead to the greatest return on investment? According to a paper published by Dr. Caela Farren from MasteryWorks, the companies with the lowest new hire turnover have an onboarding process that effectively manages:
Keeping new employees on the payroll long enough for them to start producing profits for your organization is no easy task. Statistics from the Wynhurst Group show that over 20% of churn occurs among newly hired employees within 45 days of starting work. However, companies with a structured onboarding program enjoy a rate of retention among new employees at the 3 year mark that is almost 60% higher than their competitors.
Transactional onboarding is a process that occurs on or before the new hire’s first full day of work. This is one area where companies can make immediate changes to their process with relative ease. HR typically begins seeing cost savings and increases in efficiency right away once Universal Onboarding is implemented.
When forms are presented in an online environment that enforces business rules, employers have much more control over both the expense of onboarding and the degree to which their process complies with State and Federal laws. Eliminating the redundancies found in a typical new hire packet (information fields that must be filled out multiple times by hand) also reduces the employee’s time commitment for forms completion by as much as 75%.
Tasks/Training & Socialization
Developing effective training and socialization programs takes more time, but the use of software can also be highly beneficial for this purpose. As with transactional onboarding, business rules and workflow can be customized in the AllegroHR Acculturation Portal. This permits employers to track progress and participation in task completion, education, and socialization for each new hire.
This visibility makes it possible to continuously improve the orientation/acculturation modules to ensure the highest level of employee satisfaction, engagement, and productivity. The portal can also be integrated with third party training partners if in-house resources are not sufficient to meet the needs of new hires.