When starting a new job, it's not only the employee who has to make a great impression. It's just as important for an employer to show the new starter that they've made the right decision.
In fact, one in four new employees resign within the first 12 months. People are increasingly looking for better pay and better workplace conditions.
If your new hire is left to ‘sink or swim’, or you have an inconsistent approach to their first weeks at work, don’t expect them to stay.
Investing in an onboarding process is a crucial part of creating a profitable business. The hiring process costs money. Every time someone leaves, it can cost up to 75% of their salary. In Australia, that equates to approximately $54,250 per employee (based on an average wage).
With a roadmap for guidance, employees get up to speed in less time. Once your process is in place, it’s easy to make it more efficient as your business grows.
A worldwide study of 4,288 different businesses by the Boston Consulting Group[1] shows that companies that have a great onboarding process received 2.5x the revenue growth over organisations that reported being the least capable.
The survey mapped the links between HR capability and financial performance where each business rated how well they did in managing people based across 22 HR activities, from recruitment through to restructuring an organisation. Out of the top 10 HR activities, onboarding ranked second as having the biggest impact on revenue and profit margins.[1]
About Pulse Software
Pulse Software is a leading business process management solution provider. Pulse aligns people with industry-leading solutions for government agencies and private enterprises.
For more information call 1300 363 325 or email sales@pulsesoftware.com
Footnote & Source References
[1]. BCG: From Capability to Profitability – Realizing the Value of People Management.
R. Strack, J. Caye, C. von der Linden, H. Quiros, and P. Haen. July 2012
https://www.bcg.com/en-au/publications/2012/people-management-human-resources-leadership-from-capability-to-profitability.aspx