How Onboarding Improves Business Performance

January 12, 2023

Most organizations have already implemented some type of onboarding process, but often it is paper-based, compressed into an employee’s first week, and fails to support a new employee’s overall acclimation process. This approach can lead to long-term issues with employee engagement, productivity, and even employee retention. With only 12% of employees reporting that their employer did a great job with their onboarding process, the opportunities for improvement are endless. Businesses that commit to creating more thoughtful and comprehensive onboarding processes are set to enjoy improved employee retention, productivity, and engagement while becoming more competitive in the hiring market and avoiding issues with non-compliance.

In this article, we’ll explore the myriad ways that onboarding (especially electronic onboarding) improves business performance while supporting a positive employee experience.

Establishes Expectations and Contextualizes Employee Contributions

Especially when an organization uses preboarding in their onboarding process, it’s easy to digitally share everything from an employee handbook to training modules days or weeks in advance of an employee’s first official day of work. The more time and autonomy a new hire is granted to familiarize themselves with the company culture, company protocols, their specific job responsibilities, and their role within the company, the more likely they are to be prepared for their first day and aware of what they are expected to contribute.

Electronic onboarding can also facilitate meetings in advance of Day One – everything from a casual/virtual coffee meeting with colleagues to a meeting with a manager to walk through job responsibilities or employee concerns. Throughout this process, it’s important to contextualize the new employee’s role and how they will tangibly contribute to the company’s success. The more integral employees feel to the company’s broader mission, the more likely they are to remain engaged and productive.

Expedites Productivity and High Performance

Following a successful preboarding process, new employees begin their first day more informed, prepared and enthusiastic about their role within the company. Since they are more acclimated to the practical dimensions of their job, familiarized with their coworkers, and have completed the necessary training, they can work more efficiently in the early stages of employment. Of course, as we explore in our related article, there are a number of methods your business can employ to get new employees up to speed once they’re in the office, especially in terms of productivity and engagement. From arranging 30-, 60-, and 90-day evaluation meetings to encouraging feedback, it’s entirely possible to build momentum quickly and see progress in an employee’s productivity well within a six-month period.

Improves Employee Retention and Cuts Costs

Especially in an increasingly competitive hiring market, turnover is a growing concern for many employers. Employee separation is often a consequence of an employee feeling undervalued or unsupported by the organization as a whole. The good news is that SHRM research indicates that when you offer high-quality electronic onboarding, 69% of your new hires are likely to stay for a minimum of three years.

It's much easier to build and sustain a positive company culture with long-term employees who are productive, dynamic, and satisfied with their role and contributions. Businesses that retain high-performing employees also create appeal for job candidates, who inherently trust an organization that demonstrably provides support, respect, and resources to its employees. 

Of course, there’s also a financial dimension to employee turnover vs. retention. Namely, according to the Center for American Progress, it can cost between 20 to 50% of an employee’s salary to replace midrange and upper-level management positions, with the average cost of replacing a lower-wage worker falling just under $4,000 per employee. Businesses that use a comprehensive electronic onboarding program help employees become acclimated to their new role (and company culture) well before day one, allowing them to transition seamlessly into a productive role with the support and guidance they need.

Ensures Accuracy, Organization, and Legal Compliance

A well-structured, electronic onboarding process allows your business to keep all employee information and company resources housed in a single consolidated platform that uses automation to streamline processing and encryption to protect your data. This optimization level spares you and your staff valuable hours spent processing paper forms, manually flagging errors/discrepancies, and syncing payroll with other HR functions. 

Instead, by using a single HR platform that is integrated with your onboarding process, you can easily monitor the progress each employee is making with training modules, company documents, tax forms, or other required onboarding steps. Furthermore, in a digital platform, you will be empowered to readily identify any issues that could apply to tax or payroll reporting, preventing issues with noncompliance or inaccurate and outdated information.

Optimize Productivity and Performance With Payday

Electronic onboarding can help your company promote (and sustain) a supportive company culture, boost productivity, cut rehiring costs, and ensure long-term compliance. That’s why Payday’s recruiting and onboarding solutions blend personal consultation with tailor-made technologies designed to streamline your hiring and onboarding processes. We provide all of the tools and software your company needs to launch electronic onboarding, including preboarding, training, and employee progress tracking.

Ready to improve your company’s onboarding process to improve productivity and employee retention? Contact us today to let us know how we can support your goals.

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