An excellent onboarding process has a real, positive impact on a business’s bottom line, according to new research.
An excellent onboarding process has a real, positive impact on a business’s bottom line, according to new research*.
A report by Aberdeen examined the use, experiences, and intentions of enterprises using strategic onboarding initiatives. It defined those enterprises that constituted the top 20% of aggregate performance scorers as ‘best-in-class’. They were defined by key performance criteria:
- Those companies where 91% of employees were retained, compared with 70% industry average
- Those companies where 62% of employees hired in the previous year met first performance milestones on time, compared with 29% industry average
- Those companies that registered a 33% year-on-year improvement in hiring manager satisfaction, compared with 11% industry average
The benefits experienced by these companies with superior onboarding processes included a 16% year-on-year improvement in customer retention (compared with a 12% industry average), and a 17% improvement in revenue per full-time employee (compared with 9% industry average).
The report also considered those key elements of the onboarding processes of ‘best-in-class’ performers. It concluded that those factors contributing to success included:
- A process to ensure clear accountability given to all stakeholders involved in ensuring that the employee is set up and ready to go day one
- Onboarding is centralised – one dedicated resource has oversight and decision authority over the organisation’s entire onboarding process
- Localisation of onboarding practices, forms, and technologies
- Integration and enrolment of new hires in learning programs
- Metrics to measure effectiveness of onboarding have been agreed to all by relevant stakeholders
Key HR takeaways:
- Define metrics and ensure agreement from key stakeholders
- Consider innovative technology options such as gamification
- Balance both the tactical and strategic elements of onboarding
*The research was conducted in January and February of this year, and involved 230 organisations of diverse size in North America, predominantly, but also in the Asia-Pacific region.
