–By Matt Straz of Namely
Everyone knows the importance of hiring top talent when it comes to increasing ROI — and even predicting turnover. Once you’ve found your rock star candidates, how can you improve your onboarding methods to ensure they’ll spell success for your company?
Employee quits alone are more costly than you think. Research shows it typically costs a company about 20 percent of the resigned employee’s annual salary to replace them. More alarmingly, that rate can reach up to 213 percent of the annual salary depending on the job type.
Knowing this, companies should be using top onboarding methods to protect their investment in a new hire.
Here are four important factors that can influence a new hire’s success at your company:
1. Smoother Onboarding.
The onboarding process isn’t always as smooth as we’d like. After spending an average of 51 days and $10,731 to fill an open position, we’re already setting ourselves up for failure using rocky onboarding procedures.
When a new hire arrives, ensure you give them an agenda with a defined plan of action and itinerary. Materials should include a welcome message, company history, information about products and services, a policies and procedures handbook, and any necessary department briefings.
To eliminate your new hire’s need to keep track of these materials on paper, place your onboarding materials on a digital platform accessible to everyone in the company. You can still provide paper copies as well, but your new hire might need to reference these items further along in training, and this eliminates the need for paper clutter.
To further streamline the onboarding process, consider digitizing employee profiles using a human capital management platform. You’ll no longer need to ask your new employee to remind you of his personal information weeks after hire because of misplaced paperwork.
2. Quality Training.
According to the 2012 Allied Workforce Mobility Survey, 30 percent of companies reported it takes new hires a year or longer on average to reach full productivity. Unfortunately, 25 percent of companies don’t include any training when onboarding new hires — when in reality, training is an essential part of an employee’s growth and development in a company.
To ensure your new employee is successful, develop a training program with your company’s top performers as leaders. Choose effective communicators to train new employees, and host training seminars for trainers to unify messages in the training program. Ask new employees for feedback on their progress and understanding of the job function. Make any necessary adjustments to ensure your new hire feels prepared for the job before sending them on their own.
3. Clear Communication Of Goals.
The Allied survey found 60 percent of companies don’t set any goals or measure milestones for new hires. If your new employee doesn’t know what her goals are, how can you expect her to achieve them?
Define clear goals for your new employee and recognize her for small accomplishments early on. Seeing you notice her progress will be encouraging and motivate her to perform to the best of her abilities.
The onboarding process is not only a one or two-day process — it’s continuous. Once you define goals for your new hires, set a timeline for checking in with them to see what’s working and what’s not. Demonstrate an open door policy as a manager, and welcome any questions your new hires might have.
4. Healthy Company Culture.
Here’s an example of how a first day might go for a new hire in a toxic company culture:
John arrived for his first day at X Inc. No one was there to greet him and his boss didn’t arrive until 30 minutes later. He encountered a group of employees who wished him good luck and mumbled something about a life of non-stop work. Eventually he met his trainer, who occasionally made bitter side comments about the pretty girls getting special treatment. You can see where this is going. At this point, John is probably already thinking about finding his next opportunity elsewhere.
A toxic culture will kill productivity and deflect top talent faster than anything. If you don’t want to see your new employees run off after a few short months, you’d better check your culture and make necessary repairs.
check out these ideas to demonstrate a healthy company culture to your new hire:
- Take your new hire out to lunch on the first day. Invite the whole department and anyone she will be working with directly.
- Invite your new hire to join in on office traditions such as brainstorming games, an employee “quote of the day” wall, or weekly contests.
- Celebrate milestones, achievements, and birthdays. Use a digital calendar that everyone in the company can see to keep track of important dates.
- Invite your new hire to join in on any after work social gatherings like happy hour or mini-golf night.
In great part, the success of your new employees is up to you and the methods you choose to use for onboarding and integrating them into the team. You can see how several parts of onboarding, training and company culture can directly influence an employee’s decision to stay at a company. Even the rate at which they can achieve optimum productivity is affected, which influences your ROI in hiring them.
What are some other on boarding methods you have found to be successful at your own company?
ABOUT THE AUTHOR: Matt Straz is the founder & CEO of Namely, the HR and payroll platform for the world’s most exciting companies. Connect with Matt and the Namely team on Twitter, Facebook, and LinkedIn