Improve employee retention with a quality onboarding process
February 22, 2019
In a marketplace defined by unexpected disruption and fierce international competition, organizations need to prioritize operational efficiency like never before. One of the most important and undervalued factor in institutional efficiency is the new hire onboarding process.
All too often, executives and managers believe that the surest path to success is to direct only their existing workforce to optimal productivity. But the truth is that a bad onboarding process can negatively affect your company’s financial performance for years to come and affect your incoming employees perspective of your company from the start.
The real cost of a bad onboarding process
According to an analysis of 11 research papers produced over the course of 15 years, the average economic cost of replacing a highly skilled employee is 213 percent of their annual pay. While a certain amount of turnover is just the cost of doing business, it should be understood how much churn can be directly attributed to a bad onboarding process.
The Society of Human Resource Management reports that 69 percent of workers are more likely to stay with a company if they have a positive onboarding experience. This is because a good onboarding does more than integrate an employee into an existing system — it engages them.
Ideally, a corporation’s onboarding software should serve as an introduction to the company’s structure, culture and mission. When a worker is presented with this information, they come to understand that they are more than just a data point on a graph. They are demonstrated that their work is valued and it will have a meaningful impact on their future success and the success of their co-workers.
If that essential sense of purpose is not instilled early on, it’s easy for employees to become disengaged from their work, and there are few things as costly to an organization as disengaged employees. Workers who are disconnected from their jobs not only lack passion and dedication to their work — they can have a corrosive effect on company morale.
Consequently, a single disengaged employee can have a serious deleterious impact on the entire company’s productivity and profitability. Gallup found that employee disengagement costs U.S. industry between $450 and $550 billion every year.
Even after management makes the decision to separate from a disengaged employee, the company will still have to invest time and money in finding and onboarding their replacement. As such, the importance of a quality new hire onboarding solution can’t be overstated.
How to begin improving an onboarding process
Companies can greatly improve employee retention and engagement rates by using quality onboarding software. First, new hires can fill out all the necessary paperwork electronically, which makes the onboarding process fast and seamless.
The platform can then provide training that will prepare new employees to take on their new responsibilities and give them the skills and information they need to thrive. This process can instill confidence and connection that will foster a sense of engagement. For that reason, studies have found that workers who go through a structured onboarding program are more likely to still be employed with the same company three years later.
Additionally, an all-in-one human resources solution, such as the one offered by JetPay, can cultivate employee engagement beyond the onboarding process.
For example, our JetSource solution has robust talent management features, including:
- Goal-setting: Employers can set benchmarks for organizational, departmental and individual goals that will increase productivity.
- Conflict resolution: Managers and executives can receive guidance regarding how to resolve conflicts within the workplace.
- Performance evaluations: Workers can receive crucial feedback from management that will let them know their contributions are valued and how they can further excel in their positions.
- Leadership development: Companies can identify potential leaders from within and provide them with the training and support they need to realize their full potential.
- Career path planning: Employers are given tools to help them with individual employee retention and succession planning.
On top of all that, JetSource combines these talent management features with experienced customer service support to guide you through improving this important process.
How quality hiring software improves retention with better employee acquisition
Quality hiring software can also be very helpful when it comes to improving an organization’s employee acquisition efforts. By using JetPay’s comprehensive hiring software, employers can post their open positions to all the biggest job sites and social media platforms with just a click.
Moreover, our hiring application makes the selection and screening process much more efficient. Executives and managers can also customize their pre-interview questions in a way that will make qualification of potential hires fast and easy.
JetPay’s onboarding software also gives companies the ability to perform background checks, e-verification for eligibility for employment in the United States and the Work Opportunity Tax Credit. As a result, managers can shave hours off their HR workload and concentrate on finding candidates that will be the best fit for their organizations.
As an all-in-one hiring, onboarding and human resources solution, JetPay can also provide your organization with benefits administration, payroll and tax, Affordable Care Act management, time tracking and scheduling services and some much needed support. Contact us today to take control of your HR and payroll.
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