Growing your business takes talent, and when you want to hire the best people there are a number of seen and unseen costs. In a recent study from SHRM, the average cost-per-hire in Australia was found to be around $5500. From paying the wages of HR professionals, to operational expenses, employee onboarding administration and job advertising, many organisations are looking to reduce the number of times they have to hire per year. How can your organisation take advantage of what has typically been a costly task and leverage it into one of your most valuable opportunities for 2021?
In short, attracting the right talent is essential, but what’s equally important is making sure they stay.
Decreasing employee turnover and optimising the use of resources
Employee turnovers are costing the Australian economy $3.8 billion each year, according to estimates from PWC. For this reason, amongst others, onboarding new employees poses a large opportunity cost, as lost dollars could have easily been used on business development & expansion, workforce training, and other areas of the business that present an opportunity for growth. If organisations are to properly capitalise on hiring, the focus should be on retaining and upskilling hires at an improved rate. Research from The Boston Consulting Group found companies that adopt best practice onboarding processes have 2.5x times more revenue growth than organisations who allow it to slip from their list of priorities.
Roughly, 75% of the workforce will be comprised of millennials by 2025. But attracting top talent from this generation can be a challenge. In the same report by Deloitte, roughly 70% of millennials don’t see their careers as exclusively being within traditional settings. They said that at some point, they see themselves working independently.
Given the changing state of the workforce, and millennials’ aspirations when it comes to their career and working for an organisation, businesses need to step up not just with attracting talent, but also with engaging and retaining them. They need to think of ways to enrich their staff so that they wouldn’t even consider jumping ship or changing career paths. Good employee onboarding is crucial in paving the way for exactly that.
Effective employee onboarding goes beyond paperwork and orientation. It’s designed to help a new hire integrate into the role and the organisation. When done right, it can develop brand champions who are proactively contributing to the organisation. When the process falls short, it can mean turnovers even before the probation period ends and new costs that are yet to be incurred to fill the position again.
Expedite ROI of hiring initiatives through your onboarding process
Research conducted by the MIT Sloan Management Review revealed that on average it takes anywhere from 8-26 weeks for a new hire to become fully productive, depending on the position and role.
It’s essential to give a new employee enough time to learn the ropes, build rapport with teammates, and understand the purpose of the organisation. An efficient and comprehensive onboarding process allows your new hires to better understand their new work environment, shortening the time required to become fully productive. Examples of onboarding practices that aid in induction include the addition of company culture guides, goal setting and a thorough introduction to coworkers.
Organisations that underdevelop their onboarding run the very real risk of losing new hires in the first few weeks or months. As a result, they’ll incur another round of hiring, repeating the entire process, along with all the associated costs.
It takes money to grow a business, and a huge expense most organisations have is related to hiring people. While you invest in attracting talent, you should also pay equal attention to engaging them once they have set foot in your organisation. Proper employee onboarding benefits your bottom line and financial health in the long run.
One of the ways to make onboarding efficient automate some of the manual tasks involved in it. See how Tanda’s paperless onboarding can help your business.
Significantly reduce administration with automated employee onboarding
Employee onboarding involves specific tasks that can be repetitive, time-consuming, and especially prone to error when done manually. Examples include filling out forms, encoding employee data, and distributing company documents or guides.
During a busy hiring period, it’s common for onboarding administration to become a burden, taking up a significant part of your HR or recruitment teams day and frequently causing them to incur overtime. Those hours could have been spent on sourcing talent, improving employee satisfaction, or any number of other value-adding tasks. It’s not healthy for your people, for engaging your new hires, and ultimately for your business.
Time is valuable, and you obviously want to dedicate resources on things that matter. Automate what you can in your onboarding process. A smooth process creates a great first impression for new hires and also provides a better experience both for your HR staff and new employees.
When automating your onboarding process, go for a solution that will help you manage everything in one platform, allow you to customise according to your needs, and enable you to go 100% paperless.
Tanda’s paperless employee onboarding helps simplify the process of getting employee details, gathering pre-employment requirements, and sending out-of-company documents and policies. Within a few clicks, new hires can submit necessary information, and your staff can quickly process and integrate them into your existing systems.