workmates; you’ve broken your usual morning routine because you had to take a different train/bus/car route; you’re nervous about making new friends; you’re wondering if you can do the job; you’re wondering you’ve made the right choice.

These are just a few of the things that make starting a new job nerve-wrecking, if not outright terrifying. This is why the right onboarding process is so important when you’re bringing someone new into your team. Studies show that onboarding is the second most important HR practice in a business, yet many employers still fail to put any real time or effort into the process. Companies that do make the effort however, reap the rewards. Businesses who execute great onboarding processes can expect to nearly double their corporate revenue growth and profit margins, compared to firms with only average onboarding.

The Impact

It’s estimated that 50% of senior outside hires fail within the first 18 months, and up to 20% of employee turnover happens in the first 45 days. Employees who complete a great onboarding process however, are 58% more likely to be at the company three years later. A structured, well-thought out onboarding process not only helps new employees feel welcome, but it lays the foundation for a good, long term relationship.

The Cost

Moreover, hiring is expensive. Losing a new hire within the first 12 months of their employ costs a company dearly. It’s estimated that the loss of a new hire costs a company their salary + 30%, plus the costs of readvertising the role. An employee on $80,000 a year who leaves the company, will cost the company an estimated $104, 000, plus advertising costs, and that’s just the direct cost. The indirect cost of staff turnover is arguably higher. There’s the loss of employee productivity while other employees perform their job as well as the vacant one; there’s the time lost to in-house hiring processes; the training and induction cost for the new employee; the termination administration costs; and finally, the loss of productivity in the final stages of the employee’s time with the company & the loss of productivity in the replacement employees first few months (as they learn the ropes). That’s not accounting for the decrease in employee morale at losing a team member too.

Why is Onboarding Neglected?

So, if the cost of employee turnover is so high and the numbers show that onboarding processes significantly impact employee retention, why do so few businesses dedicate time & money to developing these processes?

Part of the issue is that most employers stop the recruitment process once they’ve got a signed contract in their hands, and this is a critical error. The recruitment process should continue well into the employee’s first month, ensuring that they’re settling in and have everything they need to do their job. The second issue is that most often, companies simply don’t know what a good onboarding process looks like.

Know What Your [Potential] Employees Want

It’s important to understand what prospective employees want from an onboarding process. There will be variances but generally the desired outcomes from an onboarding process are the same. We’ve put together this infographic using LinkedIn statistics to help companies understand what they’re aiming to do:

What To Do



1. Be Prepared For Their Start Date – This seems obvious, however many company’s or hiring managers leave this to the last minute and miss things due to rushing. Ensure their desk is fully set up & stocked, they’re emails are ready to go, have access to any necessary CRM systems, they have a direct line etc. This will demonstrate that you are prepared and eager for their arrival and will go along way to helping them feel prepared.
2. Outline a Plan for the First 3 Months – This should fall to the hiring manager and cover things such as performance goals and expectations, as well as the types of things they should be doing on a daily/weekly/monthly basis. It’s important to still be somewhat flexible with this, however, as there should be room for the new employee to make this their own role and add their own flavour to it. While it’s a difficult line to tread, the key is to provide them with enough guidance to get off the ground quickly while also leaving them the room to do their job in a way that works for them.
3. Introduce them to their Colleagues & Leadership Team – On their first day, their senior manager should take the time to show them around the office, introduce them to all other employees (or at least their team if it’s a very large company), and especially the leadership team. Even if they only remember a few names, it will go along way in making them feel welcome and excited for their new role.
4. Let Them Know What You Value – Company culture is increasingly important to employees, so it’s important they understand what your company values and what the culture is like. How you introduce a new employee to your culture and environment will differ depending on the company. If healthy competition is encouraged, you could hold a ping pong table tournament or try lawn bowls; if it’s a more creative environment, a cooking or painting class with the team could go a long way. Think about what your company and people value, what they enjoy, and how you want the company perceived, and demonstrate this to your new employees in some way.
5. Develop Helpful Training Guides – This is true no matter what level seniority they are, as systems differ company to company and processes can be different even if you’re using all the same CRMs! If your new hire has a clear guides and reference points, they will feel far less out of place and worried about doing things wrong. Also important is including a point of reference in each document. For example, if you have a guide on using the telephones, include a person of contact who is best at handling any questions around this, whether it’s an IT company you contract or the receptionist.

None of this is rocket science, however it does take time and effort. That little bit of time and effort can pay off big in the long run for your company though. From the company culture, to significant monetary savings – this can be improved by simply improving your onboarding process.

So what are you waiting for?