Increasing ROI with Better Onboarding? Nonsense!

by

With over a decade-long journey within the tech sector, I’ve had the privilege of collaborating on numerous products and projects with our partners. This experience has offered me a real insider’s view into the transformative power of structured onboarding.

 However, I stumbled upon a statistic that surprised me: approximately 35% of companies have yet to implement a structured onboarding process. 

It’s a head-scratcher, right? Considering the advantages well-structured onboarding strategies offer, I thought it was a common thing. It highlights an area for growth and improvement in many organizations.

The Foundation

Imagine onboarding as the foundation of a house. If it’s solid, the house stands strong; if it’s weak, well, it costs too much to maintain or crumbles. Onboarding is the foundation for your new employees. When done right, it sets them up for success, which spells success for your projects and company. 

A study by the Brandon Hall Group highlights that a great onboarding process can improve new hire retention by 82% and productivity by over 70%. This is not just about making a good first impression; it’s about the long-term impact on your team and business.

Yes, that’s right! When done right, it sets them up for success, which can significantly impact your project outcomes, team efforts, and services, not to mention its role in cost reduction and boosting ROI in the long run.

Increasing ROI Image

Crucial for Project Outcomes

Clarity and Direction: A well-structured onboarding process provides clear direction and expectations. This means your new hires know exactly what to do and how their role impacts the larger project goals.

Skill Alignment: It ensures that the skills of the new employees are aligned with the project needs right from the start, reducing the time to productivity.

Team Cohesion: Effective onboarding fosters team bonding and a sense of belonging. This is crucial for collaborative projects where teamwork can make or break the outcome.

Cost Reduction and Enhanced ROI

Reduced Turnover Costs: The costs of replacing an employee can be hefty, ranging from 50% to 200% of the employee’s annual salary, according to the Society for Human Resource Management. A solid onboarding process reduces turnover, saving these costs.

Increased Productivity: The Aberdeen Group found that 62% of companies with a structured onboarding process experienced faster time-to-productivity. This directly translates to more efficient project completion and better use of resources.
Higher Employee Engagement: Engaged employees show 21% greater profitability, as per Gallup. Employees who are engaged from the get-go contribute more effectively to projects, driving better ROI.

Making It Work

Preboarding Activities: Start the process before the first day. Send out welcome emails, company info, and what they can expect. This eases first-day jitters and sets a positive tone.

First Day Focus: Make their first day memorable. Introduce them to the team, provide a tour, and have their workspace ready. It’s about making them feel welcomed and valued.

Ongoing Support: Extend the onboarding process beyond the first week. Regular check-ins, feedback sessions, and providing ongoing support are key.

Role-Specific Training: Tailor the training to fit the role. This targeted approach ensures the new hire has the necessary tools and knowledge to excel in their position.

Map it Out: The key is in the details – by carefully planning their initial tasks and providing ongoing support, new team members can quickly adapt and flourish in their new environment, boosting their confidence and sense of belonging.

Increasing ROI Text Image

It works for them.

Google’s approach to onboarding, particularly their ‘Just in Time’ checklist, is an excellent example of how a simple yet effective method can significantly enhance productivity. This checklist is sent to managers the day before a new hire starts, ensuring the information is fresh and actionable. It includes five critical tasks: having a role and responsibilities discussion, matching the new hire with a peer buddy, helping them build a social network, setting up monthly check-ins for the first six months, and encouraging open dialogue. This approach has reportedly increased productivity by up to 25%.

Microsoft’s buddy program for new hires has been incredibly effective. It includes one-on-one interactions with new hires, helping them to integrate faster into the company culture and become productive more quickly. Their data shows that 56% of employees who met with their buddy within the first 60 days became productive faster, and 97% of those who met more than eight times reported the same.

It works for Us.

Let me tell you about this wild ride we had with one of our partners, a software development platform. We had a small team of Business Analysts who handled five new applications per week on average. Their work pace was picking up like crazy, almost hitting a 4x velocity, and app complexity was increasing, and guess what? We had to triple our team of business analysts, and make things more efficient, fast! 

This could have been a real headache, but luckily, we had our onboarding game detailed – we had each day, the first few weeks, heck, even the first three months all planned out. They got the hang of our tools and processes quickly and had support at every moment. 

And get this – our churn rate was below 5% over three years! 

Every role and project here is like a unique puzzle piece, and we believe each one deserves its unique setup. That’s why we’ve rolled out a bunch of custom-made onboarding processes that cater to the distinct needs of different departments, roles, and even the projects we tackle.

It’s all about recognizing that a one-size-fits-all approach doesn’t cut it. Each position, each project – they’ve all got their quirks and requirements. 

So, we’ve tailored our onboarding to match that. 

We’re committed to ensuring that from the very first day, whether you’re working with us as a partner or as part of the team, you feel all geared up for success.

 It’s our way of saying, “Hey, we’ve got your back!”

Best Time to Grow is Right Now

I’ve seen firsthand the transformative power of effective onboarding. It’s not just a formality; it’s a strategic tool. 

By investing in the onboarding process, you’re not just welcoming new employees but fueling your business for long-term success, cost-efficiency, and outstanding ROI.

Ready to revamp your onboarding process and see the difference it can make?
 
Remember, the best time to plant a tree was 20 years ago. 

The second best time is now.

Bogdan Mojsic Founder & CSO
By Bogdan Mojsic
Founder & CSO

0 Comments

You might be
interested in