Start-ups and scale-ups: how effective onboarding can improve your employee retention
- Posted by alpina_admin
- On 29th October 2017
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- #employeeretention, #onboarding, employer branding, Scale-ups, Start-ups, talent, War for talent
The importance of the first few months in a new job cannot be understated. It’s a critical time for the new hire, as they assess whether their career move was a good one – and equally important for the employer, as they bed in their new hire. So as an employer, what do you need to do to make this phase successful and ‘convert’ your new hire into a long-term, high-performing employee?
The danger of getting it wrong
Recent research suggests that almost a third of new hires at start-ups will begin their job search again from scratch within the first six months of joining their new company. A report by Aberdeen Group in 2006 also found that 90pc of new hires make a decision on their long-term commitment to their new employer within the first six months within a role.
Bad onboard experiences have a wider knock-on effect
When new employees move on quickly, the costs to the business are significant. Additionally, the negative impact of this turnover ripples out to other employees who find themselves disengaged and resentful if they are forced to cover additional work. Recruitment costs are high, as are the costs of training and onboarding. However, failure to get it right will lead to wider drops in morale and organisational productivity, as managers are forced to focus on constant recruitment activity rather than strategic aims.
Breaking the cycle
Onboarding success begins with understanding the first part of the employment cycle. Four in ten new employees leave start-ups and scale-ups because the eventual role doesn’t match their expectations. A further 20% find that they are a poor fit for the company culture, and a smaller proportion leave because they don’t gel with their manager or they feel that career opportunities will be limited.
Actions to focus on
In any technology venture, your new hire must be clear about their role, its scope and responsibilities. Their new manager and the team must welcome them and integrate them into the business. Additionally, there must be processes in place to communicate the business’s vision, values and objectives. This experience must begin from the point that the role is accepted, so that your new employee feels as though they are part of the company even before they step through the door.
At the same time, the focus needs to be retained on existing team members, so that they don’t feel cut off or ignored. The emphasis should be on bringing the new team together under a strong and cohesive management, which focuses on great communication, morale building and direction of work.
The benefits of getting it right
Getting your onboarding right can raise productivity by 70%, according to Brandon Hall, the US research analysts. The same research also found that retention can increase by a whopping 82%. Much of the research into employee churn finds that onboarding is the HR process that will really make a difference to your business bottom line. So, focus on integration and education for your new hires and see measurable returns that will more than justify your investment.
This article was written by Gary Reeman, AlpinaSearch. For more insights into improving employee onboarding and retention at start-ups and scale-ups, head over to https://alpinasearch.com
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