Making the Business Case for Virtual Onboarding. Tom Masotto Vice President & GM Virtual Environments
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1 Making the Business Case for Virtual Onboarding Tom Masotto Vice President & GM Virtual Environments
2 Agenda Top 3 Best Practices for Virtual Onboarding Virtual Onboarding ROI Calculator Case Study Questions & Answers 2
3 The Onboarding Opportunity Employees with formal onboarding training are 54% more productive Organizations with a standard onboarding process experience 50% greater new hire retention Manager satisfaction increases by 20% when their employees have formal onboarding training Automating onboarding tasks results in 18% greater achievement of employee s performance goals * Source: The Onboarding Statistics You Need to Know 3
4 Millennials Driving Virtual Onboarding The traditional classroom-and-paperwork approach to onboarding doesn t cut it with Millennials Millennials have grown up using technology, and most are used to more interactive forms of learning Ability to showcase technology during the recruitment process plays a key role in holding Millennial candidates' attention Millennials 34% of the US workforce are driving many of today s business technology decisions * Ages 18 to 34 in
5 Virtual Onboarding Benefits Delivers more intuitive & consistent onboarding by providing a one-stop shop for orientation webinars, HR programs & benefits, task lists, self-paced training, and other resources Delivers the engaging & highly interactive training requested by your employees, particularly Millennials Allows companies to lengthen their onboarding programs accelerating time-toproductivity and better preparing new employees for success Improves new hires assimilation by more effectively integrating them socially and culturally Reduces the cost of new hire onboarding by up to 90% 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 5
6 Best Practices for Virtual Onboarding
7 Top 3 Best Practices for Virtual Onboarding 1 Use virtual environments to centralize onboarding training 2 Deliver interactive consumer-like virtual experiences 3 Teach your new hires by playing games 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 7
8 Challenge: Multiple Training Repositories Corporate LMS CMS Platforms 3 rd Party Databases SharePoint & Intranet Shared Drives KM Systems 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 8
9 Centralize for more accessible and intuitive process Content Sources Corporate LMS Virtual Onboarding Environment 3 rd Party Databases Websites & Blogs CMS Platforms SharePoint Social Media 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 9
10 What is a Virtual Onboarding Environment? Engaging single point of access to orientation webinars, self-paced training, peer collaboration, networking, job aids, and other new hire-related materials ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 10
11 Virtual Environments Complement LMS Platforms Virtual Onboarding Environment User Experience LMS deep links LMS-Based Courses & Assessments Training Content User Authentication (SAML / SSO) Corporate Learning Management System Administration & Reporting 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 11
12 Virtual Environments: Engaging & Interactive Experiences Engaging virtual locations (2D/3D) Configurable design & navigation Documents, webinars, videos, links 50+ networking & interactive features Gamification & leaderboards Multilingual support Self-service administration & reporting 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 12
13 Top 3 Best Practices for Virtual Onboarding 1 Use virtual environments to centralize onboarding training 2 Deliver interactive consumer-like virtual experiences 3 Teach your new hires by playing games 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 13
14 Challenge: Consumer Expectations Consumer technology has spoiled business users Business learners now expect the same kind of experiences at work that they enjoy at home Consumer-style expectations include: Sleek design Self-service delivery Networked & collaborative Anytime / anywhere 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 14
15 LMS interfaces are not designed for consumers Four of the Top 12 LMS complaints relate to Usability The linear nature of the LMS platform was not engaging enough, and even if a salesperson knew the course he/she wanted to take, it took several clicks to connect to the specific learning modules * * Source: Waters Case Study 15
16 Sleek Design: Intuitive / Familiar Experiences 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 16
17 Self Service: No Instructions Required 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 17
18 Blended: Live & On-Demand Content 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 18
19 Networked: Internal & External Social Media 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 19
20 Collaborative: Forums & Brainstorming 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 20
21 Interoperable: LMS, Blogs & More 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 21
22 Accessible: Anytime, Anywhere, Any Device 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 22
23 Top 3 Best Practices for Virtual Onboarding 1 Use virtual environments to centralize onboarding training 2 Deliver interactive consumer-like virtual experiences 3 Teach your new hires by playing games 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 23
24 The Value of Gamification Training programs using gamification improves user engagement by 60%* Gamification enhances employee productivity by 43%* Gamification provides clear training objectives and recognizes learners achievements By making learning seem more like fun, the level of knowledge retention is increased * Source: Talent LMS Gamification Survey Results 24
25 Associate points with learning activities 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 25
26 Motivate using giveaways or competitions 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 26
27 Engage learners with game boards 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 27
28 Use scavenger hunts to deliver guided training 2016 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 28
29 Top 3 Best Practices for Virtual Onboarding 1 Use virtual environments to centralize onboarding training 2 Deliver interactive consumer-like virtual experiences 3 Teach your new hires by playing games 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 29
30 Virtual Onboarding ROI Calculator Case Study
31 Virtual Onboarding Benefits Delivers more intuitive & consistent onboarding by providing a one-stop shop for orientation webinars, HR programs & benefits, task lists, self-paced training, and other resources Delivers the engaging & highly interactive training requested by your employees, particularly Millennials Allows companies to lengthen their onboarding programs accelerating time-toproductivity and better preparing new employees for success Improves new hires assimilation by more effectively integrating them socially and culturally Dramatically reduce the cost of new hire onboarding 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 31
32 Virtual Onboarding: ROI Case Study 75 New Hires / Year Annual Cost Savings Reduced onboarding costs? Increased new hire retention? Faster new hire time-to-proficiency? Total Savings 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 32
33 Onboarding Costs Analysis Compared to in-person training, virtual onboarding can reduce costs by up to 90%. The training costs that can be eliminated (or reduced) include: Airfare Hotel Meals Transportation 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 33
34 Analysis Criteria / Assumptions Number of new hires per year 75 Length of onsite onboarding 5 Days Average travel time 1 Day 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 34
35 Reduced travel cost savings is $183,750 per year Number of New Hires 75 Number of Days 5 Number of Days (including travel & weekends) 6 Per Trip Costs Airfare per person $800 Total $60,000 Daily Costs / Person Hotel $200 Meals $50 Transportation $25 Total Daily Costs / Person $275 Total Daily Costs $20,625 Hospitality & Per Diem Costs $123,750 Total Cost Savings $183, ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 35
36 Virtual Onboarding: ROI Case Study 75 New Hires / Year Annual Cost Savings Reduced onboarding costs $183,750 Increased new hire retention? Faster new hire time-to-proficiency? Total Savings 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 36
37 New Hire Retention Cost Analysis An effective virtual onboarding program can decrease new hire turnover 3 This analysis focuses on cost savings for first-year retention. The survey results / statistics used in the calculation: Cost of employee turnover is 20% of annual salary 1 71% of new hires stay for one year or less 2 Effective onboarding can increase employee retention by 25% 3 #1 - Small Business Employee Benefits and HR Blog, "Employee Retention - The Real Cost of Losing an Employee" February #2 New Survey Results: Recent Grads Leave First Jobs Quickly, February #3 - Give Your Clients A Competitive Edge with Effective Employee Onboarding, Jan 2016
38 Analysis Criteria / Assumptions Number of new hires per year 75 New hire s hourly cost $30 Cost of turnover (% of annual salary) 20% First-year new hire turnover 71% Effective onboarding retention improvement 25% 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 38
39 Retention-related cost savings is $159,750 per year Hourly Cost / Person $30 Annual Cost / Person $60,000 Replacement Cost Percentage 1 20% Replacement Cost / Employee $12,000 Number of New Hires 75 % First-Year Employee Turnover 2 71% Total Cost of First-Year Turnover $639,000 % Retention Improvement from Effective Onboarding 3 25% Cost Savings from Improved Retention $159,750 #1 - Small Business Employee Benefits and HR Blog, "Employee Retention - The Real Cost of Losing an Employee" February #2 New Survey Results: Recent Grads Leave First Jobs Quickly, February #3 - Give Your Clients A Competitive Edge with Effective Employee Onboarding, Jan 2016
40 Virtual Onboarding: ROI Case Study 75 New Hires / Year Annual Cost Savings Reduced onboarding costs $183,750 Increased new hire retention $159,750 Faster new hire time-to-proficiency? Total Savings 2017 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 40
41 Time-to-Proficiency Cost Analysis An effective virtual onboarding program can decrease the time required for a new hire to reach full productivity It typically takes 8 months for a new hire to reach full proficiency 1 New hires in longer onboarding programs gained full proficiency 34% faster 2 The analysis focuses on the cost savings associated with new hires reaching full productivity sooner The analysis assumes new hires are, on average, 75% productive near the end of the onboarding process and 100% when at full proficiency [1] Technology Can Save Onboarding from Itself, March [2] What Every Leader Should Know About Onboarding, March 2013.
42 Analysis Criteria / Assumptions Number of new hires per year 75 New hire s hourly cost $30 Typical time to full proficiency 8 months Accelerated time to proficiency 34% Difference between ramping & full proficiency 25% Average # of work days per month ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 42
43 Time to proficiency cost savings is $245,657 per year Hourly Cost / Person $30 Daily Cost / Person $240 Monthly Cost / Person $4,817 Time to full proficiency (months) 1 8 Cost to Full Proficiency / Person $38,534 Number of New Hires 75 Total Cost $2,890,080 Accelerated time to proficiency 2 34% Difference between ramping new hire & full productivity 25% Time to Proficiency Acceleration (months) 2.7 Cost Savings Due to Acceleration $245,657 [1] Technology Can Save Onboarding from Itself, March [2] What Every Leader Should Know About Onboarding, March 2013.
44 Virtual Onboarding: ROI Case Study 75 New Hires / Year Annual Cost Savings Reduced onboarding costs $183,750 Increased new hire retention $159,750 Faster new hire time-to-proficiency $245,657 Total Savings $589, ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 44
45 Lack of onboarding is affecting our productivity We hire 32 new employees each week. Our onboarding process is informal, impersonal, and inconsistent. It is also heavily reliant on the hiring manager. The lack of an onboarding program is affecting time-to-productivity and retention. HR Training & Development Director KEY CHALLENGES + Onboarding over 1,650 new employees each year + Provide an interactive, engaging experience designed for millennials + Significantly improve retention and productivity longer term 2016 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 45 $5B Financial Services
46 Improves job excitement & productivity / saves $4M With ON24, we can provide a consistent and engaging onboarding experience for global new hires, which will accelerate new hires time-to-productivity and social/cultural assimilation. Without ON24, our new hire onboarding would cost us over $4 million per year. SOLUTION COMPONENTS + ON24 Virtual Onboarding Center + Pre-boarding, orientation and onboarding modules + SAML integration for secure user authentication 2016 ON24, Inc. All Rights Reserved. ON24, Inc. Confidential. 46 $5B Financial Services
47 Tom Masotto Vice President & GM Virtual Environments Question & Answer
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