future-proofing for success:
the smart investment in onboarding

In case you didn’t already know, we love onboarding. It’s the often underestimated yet highly impactful gateway into an organisation — and more and more organisations are seeing onboarding as a strategic investment, that not only ensures a smooth transition for new hires but also proves to be a lucrative venture for long-term organisational success. We delved into some of the reasons why investing in your onboarding is a no-brainer.

Making Money While Making Introductions

In the corporate landscape, time is money, and the efficient onboarding of employees is no exception. According to a study by the Society for Human Resource Management (SHRM), a well-structured onboarding process can result in employees reaching full productivity 34% faster than their unguided counterparts. This means your investment in onboarding not only accelerates the integration of new talent but also starts paying dividends in the form of increased productivity sooner than you might expect.

The Gift That Keeps on Giving

One of the standout features of onboarding investments is their enduring impact. Unlike some business expenditures that offer only short-term benefits, the effects of a robust onboarding program linger for years. Aberdeen Group’s research reveals that organisations with a standard onboarding process experience 50% greater productivity from their new hires. This prolonged positive influence ensures that your initial investment becomes a foundation for sustained success.

Budget-Friendly Strategies

Concerned about the financial commitment? Fear not, for the beauty of onboarding lies in its ability to be spread across budget years. The Harvard Business Review notes that organisations can distribute the costs of onboarding over several years, making it a budget-friendly investment. This not only eases financial strain but also aligns with the long-term vision of your organisation.

Productivity Pays Off

In the world of business, productivity is synonymous with profitability. According to a report by Gallup, engaged employees show 21% greater profitability for their organisations. Onboarding, when done right, fosters engagement by providing the necessary tools, resources, and connections for new employees to thrive. This engagement translates directly into increased productivity and, subsequently, enhanced profitability.

Stemming the Tide: Low Turnover and Retention Savings

High staff turnover can be a costly affair for any organisation. The expense of recruiting, training, and integrating new employees can quickly add up. However, a well-designed onboarding program acts as a stabilising force, reducing turnover rates and saving considerable financial resources. The Work Institute’s Retention Report estimates that it costs organisations 33% of an employee’s annual salary to replace them. By investing in onboarding, you are actively mitigating this cost and fortifying your workforce.

Engaged Employees are Profitable Employees

Employee engagement is not just a buzzword; it’s a key driver of profitability. Engaged employees are more likely to stay, contribute positively to the workplace culture, and go the extra mile in their roles. Gallup reports that organisations with highly engaged teams experience 41% lower absenteeism and 17% higher productivity.

Onboarding, with its emphasis on connection and integration, lays the groundwork for building engaged, committed, and ultimately more profitable teams.

Accelerating Time-to-Competence

The benefits of onboarding extend beyond merely getting employees up to speed; they actively contribute to reducing the time-to-competence. Research from Glassdoor indicates that a strong onboarding process can lead to employees feeling confident in their roles 30% faster than organisations with weak onboarding. This accelerated learning curve not only enhances productivity but also allows employees to contribute meaningfully to projects sooner, positively impacting your bottom line.

Talent Retention and Institutional Memory

Consider onboarding as a form of talent retention strategy. The Training Industry Magazine estimates that 22% of staff turnovers occur within the first 45 days of employment. An effective onboarding program, however, significantly diminishes this risk by fostering a sense of belonging and purpose. Beyond retention, it becomes a tool for preserving institutional knowledge. As experienced employees mentor newcomers, vital information and best practices are passed down, creating a reservoir of organisational wisdom that endures over time.

Quality over Quantity: Tailored Onboarding for Better Results

Investing in onboarding is not a one-size-fits-all endeavour. Tailoring onboarding experiences to specific roles and departments can yield even greater returns. The Brandon Hall Group’s State of Leadership Development Study found that organisations with role-specific onboarding processes increased revenue per full-time employee by 7.2 times. This customisation ensures that employees receive the training and support directly relevant to their positions, maximising their impact on organisational goals.

Employee Satisfaction and Employer Branding

Happy employees are productive employees, and a well-crafted onboarding experience contributes significantly to employee satisfaction. The Human Capital Institute reports that organisations with a strong onboarding process improve new hire retention by 82% and productivity by over 70%. Beyond internal benefits, satisfied employees become ambassadors for your organisation, positively influencing your employer brand. A strong employer brand not only attracts top talent but also reduces recruitment costs, making onboarding a dual-purpose investment.

Adapting to the Digital Age

In an era of remote work and digital connectivity, onboarding programs can adapt to these changing dynamics. Virtual onboarding experiences can be just as effective, if not more so, than traditional in-person programs. With video conferencing, e-learning modules, adaptive authoring tools and digital collaboration tools, organisations can seamlessly integrate new hires, ensuring a smooth transition regardless of physical location. This flexibility not only future-proofs your onboarding process but also demonstrates adaptability, a trait valued by employees and potential recruits alike.

Analytics and Continuous Improvement

To ensure the ongoing success of your onboarding investment, leverage analytics and continuous improvement strategies. Utilise key performance indicators (KPIs) such as time-to-productivity, employee engagement scores, and retention rates. Regularly solicit feedback from both new hires and existing employees to identify areas for enhancement. By treating onboarding as a dynamic process that evolves with organisational needs, you create a culture of continuous improvement that adds value well beyond the initial investment.

Onboarding is not just a transactional process; it’s an investment in your organisation’s future. By delving into the many nuances of onboarding, we can amplify the long-term impact of onboarding programs. The strategic investment in onboarding programs is not just about introducing new hires to your organisation; it’s about setting the stage for lasting success. From accelerated productivity to long-term financial gains and increased employee engagement, onboarding proves to be a clear investment that pays off massively for years to come.

We work with our customers to create authentic onboarding programmes and content to be proud of, check out what we did for Nestle Health Science here. Get in touch and have a great conversation with the experts at Mindboost, to find out how we can help you craft and deliver an authentic digital onboarding programme.