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All You Need to Know about The New Hire Onboarding Process
One should not underestimate the benefits you can derive from a holistic and tailored new hire onboarding experience. Read on to know more!
Did you know organizations without an onboarding plan in place have only a 50% chance of retaining a new hire? While you may have an elaborate screening and hiring process to recruit top talent, all efforts would be futile without an effective onboarding program.
Most organizations experience a 25% turnover rate in their new recruits within the first twelve months alone, meaning a memorable onboarding experience is vital to engage and retain your recruits from the day of employment.
Importantly, companies and their hiring managers need to understand that when a new employee enters an organization, it is a transitory stage that needs to be dealt with tactfully.
Let us deep-dive into how companies can devise an effective employee onboarding solution.
What Is An Employee Onboarding Process?
Employee onboarding is undertaken to induct a new joinee into an organization holistically. Additionally, they are given the onboarding tools, resources, and information to become valuable team members.
The employee onboarding process is an excellent way for new employees to get acquainted with their work, workplace and learn what goals they need to accomplish.The programs help ease these individuals into fulfilling roles while providing an environment where collaborative behavior can thrive and employee social involvement. The more integrated into the company culture an individual feels, the longer their journey with the company. It is thus critical to embrace a robust onboarding program that includes formal training and accountability.
A new hire will need a firm grasp on the job description, performance metrics, and entire company structure and undergo a holistic employee orientation. The employee will also require additional training to become aware of the organization’s company values and procedures. Further, employees also expect a specific insight into team culture considering the increasing interactions with cross-functional teams.
What Are The 5Cs of Onboarding?
A lackluster onboarding process means companies have made only a little effort in training and preparing their new employees adequately, resulting in a higher turnover rate and reduced faith of the employee in the organization. On the other hand, a great onboarding journey ensures lower employee turnover rates, increased employee engagement, and improved productivity.
Therefore, to provide a genuinely above-average employment onboarding experience, you will need to keep the 5Cs in mind.
Compliance refers to the basic understanding of the company's policies and procedures and is essential to every employee orientation program. The onboarding program should elaborate on safety regulations, confidentiality requirements, sexual harassment, and departmental procedures. Covering these topics in the formal orientation will show the employees that you seriously take these issues. Thus, it is an effective way to build an employee's confidence in the company.
To each employee, their roles and responsibilities need to be elucidated. A new hire's expectations from the new company will always be to understand the strategic goals at an organizational, team, and individual level. With a clear understanding of how the company functions, the employee will be free from any uncertainties and will be able to adapt quickly. Further, it provides a supportive network that ensures that the new hire can perform in line with company expectations.
Company culture is often passed off as a buzzword. However, companies need to understand that this is something that new hires get exposed to from the day of employment. However, an employee needs to better understand the mission, vision, and values to create a feeling of belonging towards the company. The various elements must be instilled in the new hire throughout the onboarding process. Creating an immersive and consistent experience for the new associates will help imbibe the organizational culture and make them more accepting of the company's ethics.
Creating connections is vital to establishing reliable internal networks in the organization. Through an onboarding process, you can help develop interpersonal relationships and foster connections between employees. Employees often connect during these programs and establish relationships of mentor-mentees or connect in sub-groups that will eventually support a new hire to navigate better through the company and help the organization drive employee engagement.
Did you know that 15% of recruits leave a company owing to an ineffective onboarding program? Thus, it is vital to constantly check on your employees throughout the year to understand if there are issues that can be resolved. A robust onboarding program follows the 30:60:90 rule, which helps the hiring manager reach out to employees in 30,60, and 90 days intervals to collect feedback. Furthermore, the company will design appropriate employee training programs to reinforce concepts or focus more on specific approaches at each interval. This method can also help improve the company's overall onboarding process on a continuous basis..
Why Is An Effective Onboarding Program Important?
Because of new cultures and unfamiliar processes, a new hire generally undergoes several physical, emotional, mental, and professional hurdles. Hence, it is normal for the employee to take some time to adapt to the new working environment.
An onboarding program is the first step to induct an employee into the company, and it is the stage where the outlook of the employer develops. A company must make a positive impression through a comprehensive program in the employee's mind.
When done right, you end up creating a productive and more engaged workforce who are more committed to your organization. Did you know that if the employees are part of a more organized onboarding process, they are 69% more likely to stay on with the company for three years?
Reduced Turnover Rates and Costs
Losing an employee and replacing them is an expensive affair. A company would have to incur several soft and hard costs in this process. Soft costs refer to employee tacit knowledge and productivity lost every time an employee leaves an organization. On the other hand, hard costs are the direct expenses incurred by the company to recruit a replacement. These include placing a recruitment advertisement, background checks, drug tests, temporary staff, etc.
"Onboarding is an art. Each new employee brings with them the potential to achieve and succeed. To lose the energy of a new hire through poor onboarding is an opportunity lost."
As per SHRM, soft turnover costs amount to around 67% of the total cost, while hard costs account for only 33%. Hence, when a company loses an employee, they also tend to lose a considerable chunk of its knowledge and productivity. Thus, a company will value investing its time and money in an effective onboarding program.
The Clarity in Roles And Responsibility
Despite an employee going through various rounds of interviews and receiving a detailed job description, often, not many people are fully aware of the expectations they need to meet. An onboarding process is an opportunity for a company to clearly define the fundamental roles and responsibilities that an employee needs to fulfill. The program provides a comprehensive framework with various onboarding tools and resources that details what the job entails and how to do it. Constant interaction with mentors and peers through these programs helps address uncertainties, sets phased goals and increases employee productivity. These sessions also provide constructive feedback, which can later be incorporated into the onboarding program.
Constant Employee Check-ups
Did you know that it takes 8-12 months for a new joinee to be as competent and skilled as a more experienced employee?
An organization needs to get a new hire acclimatized to the company culture. An onboarding program can help drive employee engagement programs and show the employees' value from being part of your organization. The program itself can be made as interactive and immersive as required. It can include career development discussions, physical and virtual lunches with the team, one-on-one weekly mentorship programs, etc.
Companies can also introduce buddy programs that ensure that a mentor regularly checks up on the employee and helps him get to know the team and its functioning. Investing in yearlong onboarding strategies leaves your employees feeling engaged and inspired.
What Is An Onboarding Software?
Even though the benefits of onboarding are apparent, many organizations still hesitate to implement these programs because of the colossal amount of time, money, and resources that go to design this program. That's where an employee onboarding software can step in.
Before understanding the usefulness of onboarding software tools, let us look at a general definition.
Onboarding software is a digital platform that facilitates the smooth induction of new hires into the company and helps talent acquisition teams monitor the hiring and training of new employees. Its intelligent, digital dashboard not only helps employers and direct managers to track a new hire's progress but also facilitates communication between all parties.
With technology at their side, companies have end-to-end visibility of the onboarding journey of a new employee. It includes application tracking, employee performance management, and employment history.
By integrating the onboarding programs into the software, you can streamline associated tasks like filling out paperwork, employment eligibility verification, compliance insight and tools, payroll details, employee benefits data, and many other features. Further, it also helps create a data archive where employees can access training videos and guides on a regular basis.
Importantly, the onboarding process also becomes more well-defined and focused. For instance, a new joinee will be provided with company information and KPIs. However, a permanent and experienced employee will be provided with organizational goals and insights into the role and responsibilities.
Implementing an onboarding system reduces the administrative burden on talent management teams and provides quicker information to both employers and employees. The most important benefit of the software is the standardization of the hiring process. This ensures that the employee selection process is consistent, the job role is well defined, and employee information is appropriately stored.
Further, the company leadership and talent management team will not have to spend additional time, money, or resources to curate a new program to match the various job profiles as the existing guidelines can simply be followed.
Features of An Onboarding Software
Onboarding software is developed to facilitate the digital completion of onboarding tasks like documentation, compliance requirements, team introductions, and training programs. Its in-built features are intended to optimize and streamline the onboarding process and workload.
Here are some characteristics that you can find in onboarding software:
An onboarding software by design is meant to consolidate all human resource information in one central location. That being said, the new hires also need to be introduced to the system. Thus, an employee is provided access to a welcome portal, and the various features of the information system are also communicated.
A personal touch would be a short welcome note from the company leadership detailing the company history and explaining how employees will gain from working with the organization, helping the employee gain a sense of belonging from the first day of employment.
Importantly, this central hub gathers all the information the new joinees need to know upon joining the organization and the team. This includes their detailed job profile, roles, responsibilities, primary and secondary contacts, physical and remote working information, etc.
Further, the portal can also create a digital location for each employee to store the company handbook and other resources for professional growth and development while keeping track of employment history, salary information, etc. With respect to the training materials provided on the portal, visual aids work better than verbose content. The learning methodology needs to be more experiential with photos, videos, and live case studies. While the content needs to be crisp and clear, the system needs to be user-friendly and engaging.
Interestingly, many departments apart from Human Resources are involved in employee onboarding. For instance, the IT department needs to allocate a workstation and assets to the employee (including laptop, employee id, company email access, id card, etc.). Additionally, the finance team needs to be aware of the employee's salary details, joining information, perks eligibility, etc.
Thus, active collaboration is vital for a smooth onboarding process. For effective employee induction, the system needs to track whether all teams and people involved have completed the necessary tasks. There needs to be a digital hire checklist at the backend to ensure that all things are covered.
Typically, all organizations already have a Human Resource Information System (HRIS) to store and manage employee information. However, when you consider specialized onboarding software, you need to be mindful of selecting one that integrates well with your existing systems.
Further, the software needs to be compatible with your existing IT configurations and systems.
The integration needs to be seamless for employers and employees to view the same information across multiple data sources. For instance, an employee's name and his code need to be visible and accurate in both systems, or there should not be a double recording of any employee entries.
Moreover, all employees should have real-time access to information such as team profiles and contact details to facilitate better communication and collaboration. Some software programs even help delegate tasks and send out notifications separately to each employee.
With features like these combined with an immersive experience, you inch closer to creating a proactive onboarding experience, and a new hire is engaged enough to become a full-fledged member of your team.
Why Do You Need to Invest in Onboarding Software?
An onboarding software becomes the employer's face for the new hire. Hence, creating a memorable onboarding experience is vital as it will have a lasting impact on the minds of your employees.
On the one hand, the employees feel more comfortable while they adapt to the overall work environment and business operations. Whereas on the other hand, the employers gain complete visibility and transparency into the employee's expertise and potential. If implemented well, the system can do wonders to strengthen the working relationship between both parties.
Here are some reasons why opting for onboarding software is a wise choice for your organization:
Standardization and Consistency
While integrating software might accelerate the onboarding process, it also brings about uniformity as each employee undergoes the same training process. Considering this software acts as a centralized hub for information, it helps bring about consistency and helps in the harmonious sharing of information throughout the organization.
It helps employees gain a clear understanding of their roles and responsibilities. The transparency and knowledge of standardization also help build more trust in the mind of the employees. By bringing in uniformity, the chances of any inaccurate details also become minimal. Importantly, this app also allows for job assignments to be published to avoid any confusion. Further, maintaining a common onboarding process for all employees helps the company leaders track an employees' progress in comparison with other team members.
Works Best for Employee Transfers
With the increased mobility of employees across all company locations, companies need to ensure that even employees looking for an internal transfer can gain from the benefits of the onboarding software. Employees move across locations for professional career growth or pursue alternate career opportunities within the same company. With access to this software, employees have visibility of their entire employment history and new responsibilities. They can also gain insight into the organization structure to understand the new departments and cross-functional dependencies. Further, it also serves as a guide to ensure that they are comfortably onboarded into their new role.
Today, company leaders often struggle to create a conducive work environment that drives productivity levels. Flexible onboarding software helps you design the training program to allow employees to train at their own pace and schedule. An employee can decide to take the training during idle time in order to plan their work around the training modules. It also gives employees time to understand the concept and implement it better during projects.
Further, investing in this technology reduces the administrative burden on the talent management team, and they can focus on more strategic human resource management tasks. Structuring the onboarding process helps to monitor become much faster, and it also reduces a considerable amount of paperwork. Further, automating the operations through a digital platform helps year on year use without having to put additional effort.
Effective Internal Compliances
Employment compliances involve elaborate data collection, cumbersome file management, and the need to deal with multiple legal requirements. Hence, onboarding can be a tedious and laborious process. The software provides an onboarding checklist with all the crucial steps and several reminders to ensure that the organization is compliant while saving time. The added feature of one-click background checks and automatic record updation also reduces the number of internal bottlenecks.
Thus, investing in onboarding software will help improve logistical employment standards and internal collaboration.
New Hire Onboarding in A Nutshell
The fact is, onboarding matters because it integrates new hires that will be your organization's future leaders. Once the talent acquisition team has zeroed in on the right candidate for the key positions, the next step has to design a proactive onboarding process.
Employee orientation programs conducted internally are required to train and enlighten new employees about their roles and the company procedures. However, most importantly, it helps the employee feel valued, and they will be able to understand their role in your organization more promptly and efficiently. Investing in the orientation process also helps form meaningful relationships.
With the right onboarding software and tools, you can help the new hires in your company smoothly transition into their respective teams without relying on many personnel. Its organized and automated process helps train employees and track their progress within a few clicks. It helps provide the employees with the necessary skills and knowledge required to meet specific qualifications and standards. Most importantly, it helps derive more value within a short time. The key is not to underestimate the benefits you can derive from developing a holistic hire onboarding experience tailored to your organization's needs.