When planning 2016 Budgets an important cost that is frequently overlooked is how much is spent to onboard new employees and the losses each year due to turnover. Without an effective and engaging onboarding program, new employees take longer to “ramp up” and contribute to the company’s success. This can create dissatisfaction and pressure for the employee and financial waste for the employer. A good onboarding program not only conveys information, but also connects employees with co-workers who can help them succeed and builds goodwill and motivation. In turn, employees that are trained and onboarded properly are more likely to stay for over three years and become a motivator and mentor helping future new employees.
Forward thinking companies understand that employee engagement and morale impact the top and bottom line. Employees are more willing to leave a job if they do not feel like a valued part of a company or do not understand their role fully. According to one firm’s research, on average, within the first day of work, 4% of new employees leave, within a month 33% quit, and overall 25% of all new employees leave within 12 months of starting a new job. This revolving door is quite a cost to the organization. By contrast, the 52% of companies that have official onboarding programs see higher productivity, improved revenue and higher retention rates than those who do not have established programs.
Onboarding can be cost effective and quick with online video learning, yet to date online 40% of onboarding programs are online. Many INXPO clients who use our learning solutions enable employees to learn through live and on demand video training with engagement features like testing, feedback, and certification while management can track progress and engagement. Management to creating video and onboarding content when it is most convenient for them. Other approaches like virtual platform, community, and gamification can motivate employees and keep them intrigued.
Why wouldn’t you use online onboarding? It does not require a sophisticated LMS, learning is managed and tracked, and travel costs are reduced. Perhaps most importantly, executives and subject matter experts can deliver content and messages for on-demand viewing that engage and motivate the new employee – to reduce the turnover revolving door.