THE ONBOARDING EXPERIENCE EBOOK Paradigm Learning, Inc. PARADIGMLEARNING.COM
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1 THE ONBOARDING EXPERIENCE EBOOK
2 The Onboarding Experience Why is Employee Onboarding Important? WHY IS EMPLOYEE ONBOARDING IMPORTANT? TABLE OF CONTENTS Areas to Consider When Developing an Onboarding Program 03. The New Hire Experience 04. Meet Moe: Recent College Graduate 05. Infographic Onboarding sets the tone for an employee s tenure with their new organization. The hiring process, the first day, and the initial training all contribute to a new hire s opinion of their new workplace. Boring, inadequate, and/or disorganized onboarding can lead to disengaged and underproductive employees. With only one chance to get this crucial step right, it s an area that can t be ignored. In fact, starting off on the wrong foot can have a negative impact that reaches far beyond the onboarding process.
3 The Onboarding Experience HERE ARE 4 AREAS TO CONSIDER WHEN DEVELOPING AN ONBOARDING PROGRAM. EACH AREA IS A MAJOR FACTOR IN ANY ONBOARDING SCENARIO. 3
4 The Onboarding Experience COST The average U.S. employer spends $4,000 to hire a new worker. This average includes sourcing, background checks, marketing, pre-hire assessments, and recruitment technology. That price tag only covers up to day one. It doesn t include training and administrative costs associate with onboarding. Those costs average $400 per employee. *Glassdoor, HROnboard
5 The Onboarding Experience TIME It takes time to find the right person and train them for the job. Jobs that require judgment, creativity and technical skills generally require a longer, more intense job-screening process. Since 2010, the average U.S. hiring time has been on a steady rise. As talent pools shrink and unemployment numbers dwindle, qualified workers are harder to find. This lengthier recruitment window adds to the overall hiring cost. *Glassdoor
6 The Onboarding Experience PRODUCTIVITY A typical new hire doesn t reach full productivity until their 8th month on the job. This lack of productivity is successfully combatted by organizations that extend the onboarding process well beyond the first few days, weeks, or even months. In fact, organizations with the longest onboarding programs saw new hires gain full proficiency 34% faster. Over a year, the shortest duration of the programs sampled, that s 4 months! *HBR, Forbes
7 The Onboarding Experience REPUTATION A good reputation can drive talent to an organization, just as a poor reputation will deter them. The onboarding process sets the tone for organizational culture, processes, and values. Failing to hit the mark during this critical period can have consequences that stretch far beyond the walls of the organization.
8 The Onboarding Experience THE NEW HIRE EXPERIENCE The following is a common new hire scenario. A recent graduate is searching for a career. He has a lot of variables to consider and his level of satisfaction, productivity, and even tenure could all hinge on his onboarding experience. It s easy to envision the similarities between this fictional scenario and most real life new hires. 8
9 The Onboarding Experience 9 MEET MOE: RECENT COLLEGE GRADUATE Moe has done his research and knows what his talent is worth an average of $50,000 annually. He plans on making the most of the marketplace and shopping around for the best job possible. Interested in more than just making money, he wants a career that feels worthwhile. He needs to be a part of a engaging and productive workspace, that feels like more than just a job. His ramp up time can take anywhere from 3 to 24 months! This varies widely between industry, role, and individual. With the largest factor being the depth and duration of onboarding. TABLE OF CONTENTS Employee ramp up time can take anywhere from 3 to 24 months. 01. Why is Employee Onboarding Important? Areas to Consider When Developing an Onboarding Program 03. The New Hire Experience 04. Meet Moe: Recent College Graduate 05. Infographic 3 TO 24 MONTHS
10 The Onboarding Experience 10 If Moe experiences engaging onboarding, If he s left in the dark, without any that introduces him to his organizations mission, vision, culture and values, he ll be ahead of the curve. With a comprehensive understanding of his responsibilities and the processes behind his actions, Moe will hit full productivity in no time. structured onboarding, he ll have to fend for himself. Figuring out complicated processes and organizational structure solo will consume most of his potential productivity. Moe won t be able to reach his full potential TABLE OF CONTENTS 01. Why is Employee Onboarding Important? Areas to Consider When Developing an Onboarding Program 03. The New Hire Experience 04. Meet Moe: Recent College Graduate 05. Infographic until his second year on the job.
11 The Onboarding Experience 11 As Moe reaches his full productivity, his value to the organization will continue to rise. In fact, if Moe decides to find a new job, the cost to replace him would be $25,000 - $37,500 (6-9 months salary). Backed by a great onboarding experience, Moe is 50% more likely to stay with his organization. Coupled with healthy workplace friendships, these are the two biggest factors when accounting for attrition. TABLE OF CONTENTS 01. Why is Employee Onboarding Important? Areas to Consider When Developing an Onboarding Program 03. The New Hire Experience 04. Meet Moe: Recent College Graduate 05. Infographic If Moe didn t have the benefit of this great onboarding program, he could fall into the majority of his demographic. Gallup found that 60% of millennials say they are open to a different job opportunity 15 percentage points higher than the percentage of non-millennial workers who say the same. Millennials are also the most willing to act on better opportunities: 36% report that they will look for a job with a different organization in the next 12 months if the job market improves, compared with 21% of non-millennials who say the same. 60% 60% of millenials say they are open to a different job opportunity.
12 The Onboarding Experience 12 If Moe s new organization fails to engage him during the onboarding process, he may checkout and start job hunting by his first lunch break. Is your onboarding program designed to keep employees engaged? See the importance of structured onboarding in our Infographic. * Bureau of Labor Statistics, Gallup, Huffpost
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