The Amazing Link between Onboarding and Retention
In Jim Collins’ book Good to Great, he emphasizes the importance of ‘getting the right people on the bus’. He stresses that getting the right people, in the right roles, enables organizations to thrive, expand, and nimbly adapt to changing market conditions. He continues to say that the right people don’t need to be managed or motivated; they’re innately driven to produce and contribute to the company’s success.
Reflect for a moment about your new employee experience. You’ve spent considerable time, energy, and money to find the ‘right people’. Does your onboarding process reflect the caliber of employee you want to retain?
The first interactions with new employees – the pre-boarding and onboarding stages – set the tone for the relationship. This first impression can lead to a long-lasting engaged employee, or it can make the employee question their decision to join the company and start looking elsewhere. Most new employees decide whether to stay or go within the first 90 days.
Modern employees expect onboarding to be as graceful and seamless as ordering something from Amazon. Is your onboarding experience welcoming, thoughtful, and engaging?
Great vision without great people is irrelevant.
– Jim Collins
5 Amazing Onboarding/ Retention Facts
- Companies with an engaging onboarding program retained 91% of their first-year workers. (SHRM)
- New hires with a well-structured onboarding program were 69% more likely to remain at a company for up to three years (SHRM).
- Companies with an efficient onboarding process enjoyed a 60% year-over-year improvement in revenue. (Aberdeen)
- Companies with an efficient onboarding process also saw a 63% year-over-year improvement in customer satisfaction. (Aberdeen)
- Onboarding improves company ROI by more than $79,000 per year. (Aberdeen)