The cost of retaining a good employee is significantly less than the cost of losing one. It costs a business an average of six to nine month’s salary to replace a salaried employee due to recruiting, interviewing and training costs. That is why it is crucial for businesses to invest in their employees from day one via an effective onboarding process. By charting the path to each new employee’s success, the costs associated with employee turnover are drastically reduced.
According to SHRM, half of all senior outside hires fail within 18 months of the new position starting and half of all hourly employees leave their jobs within the first 120 days. There is clearly a distinct need to help the employee transition into their new role. The onboarding process meets this need by helping employees adjust to the social and performance aspects of their job. It helps the employee feel welcome, valued, supported and prepared for their new role. Finally, onboarding lays the foundation for employee satisfaction and retention.
A good onboarding process is not only good for the employee, it is good for the company. Proper onboarding reduces the costs associated with on the job training and increases productivity by limiting the amount of time co-workers must spend training new hires. It also leads to lower turnover and greater profits.
Here are five tips to help your new employees get off on the right foot:
- Begin the onboarding process by welcoming the employee. Take them on a tour of the facility. Introduce them to some of their new co-workers and provide an employee handbook outlining policies, procedures and necessary forms.
- Provide clear objectives and set expectations up front. The orientation process should be clear and concise. The presentation should include both audio and video format for consistency and retention purposes.
- Set some time aside for the new hire to get to know senior management. A simple coffee break with the senior management team is sure to give the employee a great impression of the company.
- Assign a mentor who will act as a resource during the transition process and beyond.
- Give the employee a surprise welcome gift. Great options for gifts include a coffee mug or t-shirt. This small token will make the employee feel appreciated during this stressful time.
CS Recognition Solutions was founded nearly 40 years ago with the desire to motivate and inspire employee achievement with custom recognition programs. For more information on how to recognize and reward employees visit us online or call us at 888-847-2215.