On average, recruiting, hiring, and training a new employee can cost upwards of $10,000, with 25 percent of these recruits leaving after the first year. The amount of time and money wasted is astronomical. An onboarding guide allows you to help an employee transition into the company, increase their productivity, and eventually reduce the high turnover rate.
1. Reduce Turnover Rate
Employees leave their jobs for a variety of reasons, but there’s a saying--people don’t quit jobs, they quit managers. Even the current crop of millennials, often criticized for changing jobs every two or three years, cites the same reasons as every other generation: they don’t feel appreciated and want their work to be valued.
An onboarding guide can help change that. A good guide includes the company’s story, introducing a new hire to the company’s origins and demonstrating why they were chosen to help advance the company’s vision. Vague job descriptions are clarified during this time, and the Hiregy Manager’s Guide to Onboarding suggests taking the time to set both short-term and long-term goals for each hire to help them understand performance expectations.
2. Provide Structure and Increase Productivity
The first few days—or weeks, or months—on the job can be tumultuous. Employees might confess that they don’t know what’s expected of them, while other team members might be unsure of how to integrate them and how tasks should be delegated or shared. This guide is designed to eliminate this early chaos.
In addition to setting goals for a new employee, you should also consider assigning them a mentor who can walk them through their first few days and provide advice, support, and direction. Not only does this help foster a stronger connection between coworkers, but it sends the message that every hire is taken care of.
Besides that, you should provide your new employee with all the information they might need on the first day, ranging from manuals to personnel procedures to anything else. A mentor would ideally cover this verbally, but having the material written down for later reference can help eliminate misunderstandings and move the process along quickly. Also, taking the time to schedule any needed training helps employees feel more confident and assured of their role in the workforce.
3. Decrease the Ramp-Up Time
A standardized onboarding guide addresses any problems or issues that new hires might face, eliminates the mild anarchy of integrating a new employee into the team, and maps out their new responsibilities and the company’s expectations. All of this is geared towards helping them transition smoothly and seamlessly into valued employees.
The biggest financial cost of a new hire is the training process, while the biggest time cost comes from waiting for them to find their feet and their voice. An onboarding guide drastically reduces the amount of time and money this can take by providing a set, standardized procedures to follow and makes expectations clear.
Recruitment doesn’t end once your candidate accepts the position. In this changing job market and economy, employees--especially millennials, again--are interested in exploring different career paths and want to understand how they contribute to the success of the team. An onboarding guide helps create and foster a culture where every member, from hiring manager to intern, understands what the expectations are and holds each other accountable for high performance.