Twenty percent of turnover happens within the first 45 days, here’s how to get through this delicate period with optimum retention!
Bad hires are more than just a drain on company morale (which by the way is a big deal). Bad hires are estimated to cost several times that person’s first-year salary. In fact, Zappos CEO Tony Hsieh was quoted as saying that his own bad hires had cost the company well over $100 million. In almost every industry, salaries and variable costs related to the workforce are, by far, the highest costs of doing business. Point blank, hiring the wrong person should be avoided at all costs. What happens, however, if the hiring decision process is being blamed for a poor or non-existent onboarding process when the problem lies with poor onboarding?
Why your poor onboarding process could be your company’s biggest threat:
Imagine the time, effort and money put into recruiting, interviewing, vetting and hiring the best candidate for your team only to have that investment squandered as they walk through your doors. This is an all-too-familiar tale in companies where onboarding is not done right or not done at all.
- Retention starts day one. The job market is competitive. Recruiting and retaining good employees is more important than ever. The September jobs reports that announced a decline in the unemployment rate by 0.2 percentage to 3.7 percent; the lowest seen in the U.S. in decades. Fewer job seekers are actively looking, and in certain fields like tech, finance and medical, these sought-after pros can pick and choose where they land.
- Culture is contagious. Culture is a recruiting competitive-edge that wins top talent to your team. Lack of communication, poor training, and high turnover rates not only cost your business money, they negatively impact your culture.
- Your brand is on display. What happens inside your company, no longer stays inside your company. With online networking on LinkedIn, Glassdoor, and other platforms, new candidates now have the ability to learn what truly happens in your organization. Make sure what they see is positive!
Four ways HR tech solves your onboarding conundrum:
So, if you recognize your human resources and onboarding weaknesses, you’ve made a great step toward identifying the problem. And, no need to panic, you’ve got a bevy of tech tools that you can easily tap into to help you get your onboarding up to snuff ASAP!
- Reach remote teams. The number of remote workers in the U.S. workforce has been trending upward for the last ten years. While offering remote work options is a great recruiting tool, it can create some training and communication challenges. Technologies like enterprise chat and robust, cloud-based project management systems are readily available that allow new team members to stay connected, get face-to-face training (even if it’s screen-to-screen) and provide visibility to progress.
- Dot Is and cross Ts. Compliance is an ever-evolving area of human resources. When hiring new employees, it’s important to comply with federal, state and local regulations and document that compliance. By using HR tech tools to digitize the entire paperwork process, you can protect your company from risks of non-compliance or poor record-keeping. And the new hires will love you for streamlining this not-very-exciting-but necessary part of the onboarding.
- Communication flow demystified. Your current employees, as well as your new employee, need a constant flow of communication. In fact, a top complaint of unhappy employees is that their company did not let them know when things changed. Transparency, easily accessible communication, and consistency are the keys to keeping your workforce (both new and existing) feeling in-the-know.
- Gain key insights. HR tech tools can also provide you with insight as to what’s working with your onboarding efforts and what’s not. Using qualitative tools (like creating confidential feedback channels) and quantitative tools such as performance metrics or training follow-up surveys.
Your company only gets one chance to make a first impression with your new hires. And up to 20 percent of turnover occurs within the first 45 days of employment. The good news is there are countless technology tools to help support and grow with the demands of your unique team.