No significant increase is witnessed in the overall productivity of the organization unless there is a well-balanced employee turnover in an organization. The mangers choose critically the best recruitment patterns, performance evaluation system and effective administrative practices and engagement methodology to keep the retention level in balance.
In this chapter, we will discuss exactly how essential a new resource onboarding truly is.
New employees who went through a structured onboarding program were 58% more likely to be with the organization after three years.
Organizations with a standard onboarding process experience 50% greater new hire retention
Up to 20% of employee turnover happens in the first 45 days
69% of employees are more likely to stay with a company for three years if they experienced great onboarding
The organizational costs of employee turnover are estimated to range between 100% and 300% of the replaced employee’s salary
23% of new hires turnover before their first anniversary
Nearly 33% of new hires look for a new job within their first six months on the job
The average cost of replacing an employee is between 16 and 20% of that employee’s salary
Best-in-class companies are 35% more likely to begin onboarding processes before day one.
Employees whose companies have longer onboarding programs gain full proficiency 34% faster than those in the shortest programs
60% of companies fail to set milestones or goals for new hires
Best-in-class businesses are 2.5 times more likely to their new hires’ progress in the onboarding process
Manager satisfaction increases by 20% when their employees have formal onboarding training
Only 37% of companies extend their onboarding programs beyond the first month
22% of companies have no formal onboarding program
It typically takes eight months for a newly hired employee to reach full productivity
Organizations with a standard onboarding process experience 50% greater new hire productivity
Even though onboarding programs are expensive for an organization to afford, it is essential to have an effective onboarding program in the larger interest of the organization. Unless the new recruits are reshaped as per the demands of the organization, no organization goal will be materialized.