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July 23, 2024
One of the simplest ways to drive down recruitment costs is by increasing employee retention. By keeping existing employees happy, you’ll spend less money on hiring and training new individuals within your organisation.
Many employers assume that employee retention rests on actions like promotions and pay rises, but the process actually starts much earlier than this. It’s not about waiting until your employees are frustrated and looking to jump ship and then offering them enough to convince them to stay.
Employee retention starts as early as the onboarding process and it carries on through every interaction with your employees as they grow and learn with your company. In this guide, we’re looking at the role of the onboarding process in encouraging employee retention and how to create the perfect onboarding process for your company.
First things first, why is employee retention even important? For most businesses, their employees are their biggest expense and also their biggest asset. The cost of hiring an employee for a role goes far beyond the time and resources it takes to identify the ideal candidate.
There is also the time it takes to train this individual and supervise them until they are able to act independently. You might then invest in training and career development to give the person the skills they need to be able to perform in their role.
There is also value in their ongoing experience with your company. The longer a person stays with your company, the more knowledge they will have that cannot be taught or passed on.
This is why employers often struggle when their employees decide to head to their competitors, as the information they hold is very valuable. And this is often why less secure employers are reluctant to invest in employee training, as they worry about what will happen if their employees leave.
The key to employee retention is not to encourage people to stay with your company for as long as possible, no matter the cost. The key is to keep employees engaged and switched on, so they can continue making a valuable contribution to your organisation.
Onboarding helps with employee retention in multiple ways. First, it lets employees know that they are valued and supported. If an employee feels they have been thrown in at the deep end, they might question if they have made the right move.
By offering support during the onboarding period, you can enjoy improved employee retention and ensure that every employee is fully equipped to do their best work.
Having an established system for onboarding new employees will also take the pressure off existing employees to support new hires. This added responsibility can lead to resentment among existing employees who may feel like they have to shoulder the burden of supporting new hires without recognition.
Now that we understand the importance of an onboarding process, it’s time to start looking at the components you need to include to create the perfect onboarding structure for your organisation.
The onboarding process actually starts when you offer a candidate the role. This job offer should be clear in what you are offering and what you expect in return.
Don’t assume that anything mentioned in the interview is binding as you could run into issues further down the line if there are disagreements. For example, if the candidate has been loosely offered a pay rise after their probationary period, this needs to be put in writing.
The job offer should also clearly state the probationary period and what is expected during this time. Give the candidate time to review and sign their contract, which will also lock in their proposed start date.
Their first day should have a clear schedule with plenty of time to get used to the space, get to know their colleagues and set up the basics like computer and email access. It’s also a good idea to arrange lunch on their first day so they can chat to a group of employees and not feel out of place.
While some employees will be more than happy branching out and getting to know those they will be working with, others might find it awkward and will appreciate this being taken care of.
If your employee needs to run through employee handbooks and training, consider using technology to make this process more engaging. If you leave a new hire to read a thick manual you can expect them to skip a fair amount, but watching a video with the same content should hopefully be more engaging.
Pairing new hires up with established employees will ensure they always know where to turn if they have a question. Agreeing to become part of the buddy system can be an effective way to determine which employees have good management potential, as this will show you who is an effective and supportive leader.
Regular check-ins will help to clear up any confusion and ensure that new hires have the space to ask questions and seek clarification. This can be more effective than just assuming that they have settled in well simply because they haven’t come to you with any further questions.
If there’s something missing from your onboarding process, your new hires will be the best people to ask. At the end of the probationary period, ask your new hires for feedback on the onboarding process. This will demonstrate a level of respect for their input and interest in their contribution. It can help to avoid blindspots in your onboarding process that might be holding employees back or causing unnecessary confusion.
The onboarding process is an essential part of keeping your employees happy and satisfied in their roles. Through ongoing feedback and refinement, you can create a process that will boost employee retention and help to drive down recruitment costs in the long term.
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