Can you believe it? We’re in the homestretch of 2017. Businesses who still perform annual performance reviews are either already evaluating, or are about to begin. Budgets for 2018 are being devised and finalized for approval. Massive effort is being put into finishing the fiscal year on a high note, and mastermind sessions are creating strategy and plans for the pending new year. It’s safe to say that every discussion and plan for the future of business will have an impact on: recruiting, hiring, engagement, productivity, retention, and ultimately, profitability. Today’s leaders understand that these areas have a direct impact on the overall culture of the business, influencing everything from the quality of new hires, to customer experience, to the valuation of the company’s bottom line.
Many companies are now beginning to understand that the most significant process that they can incorporate into their business is effective onboarding. And while many companies view onboarding as filling out paperwork, the global business world and HR professionals are beginning to take notice of what a comprehensive onboarding process can do.
Here are 22 stats that will make you a believer in the power of onboarding:
TURNOVER AND RETENTION
- 28% of employee turnover happens in the first 90 days of employment. (Robert Half & Associates)
- Half of all senior-level outside hires fail within 18 months. (source)
- Half of all hourly employees leave new jobs in the first 120 days. (source)
- 86% of HR professionals feel that a new hire’s decision to stay with a company long-term is made within the first six months of employment. (Aberdeen)
- 60% of an entire workforce will be gone from a company within 4 years if there is no formal process for ongoing training and career development. (SHRM)
- Companies with an engaging onboarding program retain 91% of their first-year workers. (SHRM)
- Newly hired employees are 58% more likely to still be at the company three years later if they have completed a structured onboarding process. (Wynhurst)
- Only 33% of employees in the US are engaged at work (source).
- Only 24% of workers feel connected to their peers. (source)
- 87% of organizations cite culture and engagement as one of their top challenges, and 50% call the problem “very important”. (Deloitte)
- 54% of the best in class in onboarding see significant gains in employee engagement metrics, including: employee turnover, absenteeism, productivity, and employee satisfaction. (Aberdeen)
PRODUCTIVITY AND PROFITABILITY
- Unhappy workers cost the U.S. between $450 and $550 billion in lost productivity each year (source)
- The average cost of replacing an employee is between 16% and 20% of that employee’s salary (source)
- The organizational costs of employee turnover are estimated to range between 100% and 300% of the replaced employee’s salary (source)
- Best-in-Class businesses are 2.5 times more likely to measure their new hire’s progress in the onboarding process (source)
- Lost productivity due to new hire learning curves can cost from 1%-2.5% of total business revenues. (source)
- Employees’ discretionary effort increases by more than 20 percent when they are onboarded effectively. (Wynhurst)
- Effective employee onboarding programs increase employee performance by up to 11% (Wynhurst)
- 62% of companies with effective onboarding practices have higher time-to-productivity ratios (Wynhurst)
- Manager satisfaction increases by 20% when their employees have formal onboarding training (source)
- Organizations with a standard onboarding process experience 50% greater new hire productivity (source)
- Organizations with structured or formalized onboarding programs can see a 60% year-over-year improvement in revenue. (source)
As we approach 2018, now is the time to get onboard with effective onboarding. Don’t let another year pass without addressing this game-changing process for your company. We believe we are the premiere solution to your onboarding needs. We customize our Xenqu HR Solution Platform to fit your specific needs, at a cost that makes sense for your budget. We’ll provide you Stress-Free onboarding with our AI robot automation!
Contact us today for your demo!