The hidden costs of poor onboarding and how you can turn it into your competitive advantage 🌟
Imagine you’ve hired the perfect candidate after an extensive recruitment process. They’re talented, motivated, and ready to make a difference. But within 90 days, they hand in their notice. What went wrong?
Unfortunately, this scenario is all too common. Research from Harvard Business Review reveals that one-third of employees leave their new job within the first three months. And the costs are staggering. Replacing an employee can amount to 200% of their annual salary, factoring in recruitment, training, and lost productivity.
It doesn’t stop there. Poor onboarding creates a ripple effect across the organisation. Team morale suffers. Productivity stalls. Your employer brand takes a hit. Employees, new and existing, begin to question your company’s values. In fact, only 12% of employees feel their organisation excels at onboarding, according to Gallup.
Beyond the numbers, the real cost to your organisation is cultural. A disengaged employee disrupts workflows, strains relationships, and may inadvertently influence others to leave. It’s a situation no organisation can afford.
The ROI of doing onboarding right
There is good news. Exceptional onboarding delivers measurable returns. Organisations that invest in a structured and thoughtful process see new hire retention improve by 82%.
Effective onboarding also accelerates productivity. Studies show new hires are over 50% more productive when onboarding is executed well. And, there is a measurable impact on long-term engagement with 69% of employees more likely to stay for three years or more if they have a great onboarding experience.
But it’s not just about retention and engagement. Revenue growth and profitability soar when onboarding becomes a strategic priority. Companies with standardised onboarding processes experience 2.5x the revenue growth and 1.9x the profit margins of those without.
How you can take action today
Transforming onboarding doesn’t have to be overwhelming. Start with these practical steps:
Assess your costs: Calculate the financial impact of turnover in your organisation. This formula might help:
Cost of Turnover = (Recruitment + Training Costs + Lost Productivity) x Turnover Rate.
Map your onboarding journey: Review your onboarding process from pre-boarding to the end of the first 90 days. Identify gaps in communication, training, and feedback.
Engage your team: Download my conversation prompts to spark discussions around onboarding within your team. These prompts will help you reimagine and refine your approach.
Book a free consultation: Let’s talk. Schedule a free one-hour call with me to quantify your gaps and outline actionable steps to optimise your process.
Your onboarding experience is a reflection of your organisation’s values
Exceptional onboarding is a reflection of your organisation’s values. It’s an opportunity to showcase your commitment to employees, foster loyalty, and differentiate yourself in a competitive market. When done right, onboarding supports your new hires to thrive and sets the stage for long-term success.
At Culture Campfire, I specialise in creating onboarding experiences that matter. From helping you measure the ROI of improvements to implementing tailored strategies, I’m here with you every step of the way.
Your next move
Don’t let poor onboarding hold your organisation back. Start by evaluating your current process and envisioning what great could look like. Book your free consultation with me today or download my onboarding discussion prompts. Together, we can turn onboarding into your organisation’s competitive advantage.
