Top 5 onboarding challenges
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1 Top 5 onboarding challenges kpmgspectrum.com
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3 Finding the right employee is not always easy. When you do, what efforts are you making to ensure they stay, grow, and thrive at your company? After all, an employee s decision to stay is usually made within their first few months on the job. Considering the intense competition for talent and the high costs of employee turnover, it is business critical to put in the extra effort to welcome and integrate new hires into your corporate culture as soon as possible. A positive onboarding experience can help new hires stay. Industry statistics show more than 80% of them decide whether or not to stay at a new company within the first six months, and more than half (58%) of new hires who go through an effective onboarding process are more likely to be at the company after three years. That s why the onboarding process is so crucial. Onboarding should be much more than making sure the right forms are completed. It is a prime opportunity to engage, build and nourish a successful employee-company relationship. From an employee s view, it is a chance to become an important and engaged member of the corporate community. From an employer s view, it is a chance to build a new relationship that can bring significant returns on investment. So, why do so many companies tend to overlook it? With this in mind, we have identified five onboarding realities to create a successful experience that incorporates the employee perspective. 5 Onboarding realities every employer should know 3
4 1. A lasting employee relationship starts before day one. For employees, onboarding should be a welcoming experience that immediately demonstrates their importance to the organization. It should offer multiple interactions before, during, and after they walk in the door in order to foster engagement, manage expectations and establish connections. Early communication can alleviate new hire stress, initiate an instantaneous sense of inclusion, and enable early productivity. As part of this, an efficient, automated provisioning process will ensure the new hire has equipment and a workspace available when they arrive. Early engagement will help a new hire feel confident, inspired, and fully prepared to contribute from day one. It also has a direct impact on your bottom line the sooner new employees are equipped and engaged, the faster they ll become productive and be more likely to stay. Moreover, this approach will help create a lasting first impression, build a strong sense of loyalty and validate their decision to join your organization. Such engagement also becomes a powerful recruiting tool, as the new hire shares their positive experience with their social network. 2. The employee sees things differently than you do. Put yourself in your employee s shoes. Everything is new to them where the pantry is, who is on their team and what processes are utilized. Human interaction before and on the first day is important to help an employee feel connected and part of the team on their first day. Onboarding should offer them the opportunity to ask questions, learn more about their new team members, and understand specifics about their new role. This interaction cannot be left to first-day orientation alone. Effective communication should address the employee s perspective and in a variety of formats. A barrage of redundant requests, forms, and tasks placed on new employees can quickly erode any goodwill generated during the recruitment process. Lapses in communication or logistical errors can cause the new hire to feel anxious or become disengaged. An ideal onboarding process should stem from the employee s advantage point and provide the communication, personalization and engagement necessary to quickly and effectively integrate the employee into the corporate community. The process should be done thoughtfully, using different techniques to not bore or overwhelm a newcomer
5 3. The onboarding process can overwhelm everyone involved. The onboarding process can be overwhelming for many employees as well as for hiring managers. A company has too many moving parts for a new employee to learn all at once, and this can also be a challenge for hiring managers who shepherd them through the process. A centralized onboarding process designed with employee needs in mind helps for a smooth transition and creates a positive, painless, and productive experience that prioritizes socialization to the work environment. Having instant communication and prioritized tasks also benefits hiring managers who can track the new employee s onboarding progress and enable the new employee to connect with their new team members. Additionally, applications that works across disparate processes but are tailored to the specific user will help address the different expectations, needs, and requirements of new hires, HR, hiring managers and other groups that have a role in the process. Designing the application with the look and feel of a social media platform will also help simplify the onboarding process. People today are accustomed to using social media style platforms to communicate and share their experiences. A process that mimics social media and operates in a way that new employees already know and understand can go a long way towards easing their anxiety, and ultimately retaining them over the long term. Your onboarding process should be a reflection of your corporate culture. A technologically advanced process demonstrates that the company is modern and forward looking. Conversely, a fragmented, disconnected process can signal that your company operates the same way. A centralized onboarding process requires flexible, customizable technology that enables efficient operations. This technology, delivered through a centralized dedicated resource, can substantially simplify the experience for the new employee while also helping HR professionals prioritize communication and complete administrative formalities. 5 Onboarding realities every employer should know 5
6 4. Loyal and productive employees add to your ROI. Companies that invest in their employees early on are more likely to see a successful, long-term employee-company relationship develop. Employees want to be recognized as a valued member of the corporate community, which directly impacts their desire to build their career with your company. The onboarding process is the first indication to the employee that you have a stake in their future. From a company perspective, the potential return on investment is enormous. Two main factors often drive an organization s decision to invest in a new onboarding process: cost savings achieved from automation and integration of HR processes; and the high cost of employee turnover. An ideal onboarding process should be able to prove its return on investment by reducing the time it takes for a new hire to become productive and keep coming to work each day. It should also help you create a group of loyal employees who advocate for the company throughout their career. They ll share their positive experience with their friends and former colleagues, serving as indirect recruiters that help you attract the best talent. For illustration, an organization with 15,000 employees at an average salary of $50,000 with 9% annual turnover can potentially reduce direct and indirect onboarding costs by almost $5,000,000 annually through a 1% reduction in turnover and an increased process efficiency of 20% through automation. These are attainable savings that require minimal investment.
7 5. Your view of onboarding can make a big difference. New employees that have a better understanding of their role as well as the company culture will lead to increased employee morale and retention. What you put into your onboarding process will result in what your employees will get out of it. Overall, companies should view onboarding as a means to developing lifelong employees rather than simply as an effective tool to assist the administrative process. Today, there are a variety of technology solutions that help standardize, streamline, track, and coordinate every step of the process. It s really a matter of finding the right tool that not only meets these administrative needs, but also enables you to build employee engagement and enhance the new hire s experience even before their first day, resulting in employee loyalty and the ability to add value on Day One. It s worth noting that employees, HR and hiring managers today want flexibility, technology, support and encouragement along the way. And the right onboarding process can help meet these needs by providing a single centralized system that spans across company functions, enables socialization and unites technology with a human connection that makes a difference. Conclusion The onboarding process is critical to keeping the right employees after you have hired them. It can help reduce the high costs of employee turnover and help new hires become productive faster. Onboarding is more than another HR process, however. It is an opportunity to engage employees and develop them into an important member of your corporate community. A comprehensive onboarding solution is an investment worth considering. 5 Onboarding realities every employer should know 7
8 At KPMG, our business is built on understanding yours. We focus on creating tangible value for our global clients, working together to streamline and improve their HR business operations. KPMG has the scale, expertise and capability to develop and implement cutting-edge solutions. We ve utilized data to support an employee-focused solution with a more connected, human experience. KPMG can help automates a once-manual process, increasing productivity and alleviating the pain of traditional onboarding. kpmgspectrum.com kpmg.com/socialmedia The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation KPMG International Cooperative ( KPMG International ), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS The KPMG name and logo are registered trademarks or trademarks of KPMG International.
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