E-BOOK: ROI of Employee Onboarding Program

Transcription

1 E-BOOK: ROI of Employee Onboarding Program

2 As a leading Onboarding solution provider, we have helped leading organizations and over 10,000+ new hires from organizations like InterGlobe, Hitachi, etc. undertake this journey together. We believe you never get a second chance to make the first impression.

3 Preamble People are the lifeline of any business and great businesses understand and nurture this lifeline. If the people are excited, motivated and connected with the people, values and culture, they go extra mile to make the organization successful. And, there is no better time to start this journey than just after they have accepted the offer? Typical Onboarding starts on the first day of the job. In the new paradigm, the Onboarding should start from the day they have accepted the offer. They should continue to connect and celebrate every day in anticipation of the new job on the premise, we are glad you chose us.

4 Top Drivers for Effective Onboarding Employers New Hires

5 ROI of Employee Onboarding Programs While the benefits of Onboarding are many but when it comes to presenting a ROI analysis for Onboarding investments, many HR leaders would struggle. The struggle is not only in terms of the time consumed but understanding all the direct and indirect costs as well as benefits and quantifying their impact. Use this guide to help you identify the components and how to calculate their impact that can be put on the ROI analysis. While this guide would be helpful in estimating the direct cost, use feedback surveys, baseline improvements on key metrics, NPS, Social listening, etc. to attribute indirect benefits. While preparing the ROI sheet, HR leaders should be careful about taking at least a three year horizon as some of the benefits accrue over a slightly longer time period like three years.

6 Components of ROI We believe there are four major components of Employee Onboarding ROI.

7 1. Reduction in No-Show rate There is no bigger uncertainty than waiting for a candidate to join and the candidate informing that he has picked up a counter offer. Structured Pre-Onboarding helps organizations reduce the no-show rate after offer acceptance by giving warning signals much in advance. The programs don t promise to eradicate the problem but reduce it to a large extent and let talent acquisition leaders be better prepared for the rest. Component No-Show Rate ROI Elements Rehiring cost for candidates who fail to show up Productivity lost because of open head count

8 2. Lower Cost of Onboarding Any new journey is exciting for most of the people but in your corporate journey, much of the first day is spent filling out paperwork s and joining formalities. Use structured Pre-Onboarding program to complete the compliance part before the candidate joins and save on the administrative cost of HR, Onboarding teams and New Hire. Component Administrative Cost of Onboarding ROI Elements HR Time saved on compliance HR resources required for Onboarding New Hire time saved on Onboarding

9 3. Faster Path to New Hire Productivity Onboarding can give new hires an early lift in becoming integrated with the new culture during their notice period day plans set the new hire on a path to success. The goal is to reduce the time that it takes for a new hires to become effective on the job. Component New Hire Productivity ROI Elements New hire productive value per month Time saved for new hire to become productive

10 4. High Employee Retention A study found that a significant portion of employee turnover occurs during the first few weeks on the job. People enter a new environment, feel uncomfortable and unwelcome, and promptly choose to leave. Pre-Onboarding sets the stage for that great first experience. Empowering new hires with information makes them much less likely to second-guess their decision to join your company. Component Employee Attrition ROI Elements Rehiring cost including HR, Job Portals, Consultants, etc. Productivity loss of an open headcount

11 5. Improved Employer Branding First day at new job is often tense as there is so much uncertainty, unfamiliar environment and lots of questions. If candidates know the people before joining in, connect to the culture, have a buddy to go to, have their initial questions answered, you help reduce their anxieties and demonstrate being thoughtful about their first experiences. Component Employer Branding ROI Elements No. of applications for openings Employee attrition

12 ROI of Employee Onboarding Program? Put together the ROI of Onboarding programs is the sum total of all the ROI components. It s one program that keeps on giving for years directly and indirectly. A motivated, Component No-Show Rate Administrative Cost of Onboarding New Productivity Employee Attrition Hire ROI Elements Rehiring cost for candidates who fail to show up Productivity lost because of open head count HR Time saved on compliance HR resources required for Onboarding New Hire time saved on Onboarding New hire productive value per month Time saved for new hire to become productive Rehiring cost including HR, Job Portals, Consultants, etc. Productivity loss of an open headcount Employer Branding No. of applications for openings Employee attrition

13 How can MyJoining help? First few days of any candidate or new hire can decide the success or failure for the new hire and the entire organization. While the basic components remain the same across organizations, the magnitude and the depth of the components vary from organization to organization. Use our online tool to calculate the ROI for your own organization. USE OUR FREE ONLINE CALCULATOR! Already feel confident, try MyJoining for free for 3 months totally obligation free. No questions asked. Use free TRIAL!

14 As a leading Onboarding solution provider, we have helped leading organizations and over 10,000+ new hires from organizations like InterGlobe, Hitachi, etc. undertake this journey together. We believe you never get a second chance to make the first impression.