Employees are the backbone of any company. Their performance impacts all business metrics and are therefore one of the most important assets to manage well. However, employees are job hopping at an alarming rate today. A Gallup report found that up to 60% of millennials are open to new job opportunities and almost a quarter of them have changed jobs in the past year. More alarmingly, a BambooHR survey of 1000 employed US workers found that 31% of new hires quit their job in the first six months. One of the main reasons for this alarming statistic is lack of training and unmet expectations.
Employee turnover is not only a frustrating work distribution problem for companies searching for the right fit, but it is also a costly one. According to Gallup, in the United States alone, turnover costs businesses around $30.5 billion annually. The Society for Human Resource Management also found that turnover costs are excessive. Their report found that companies typically spend six to nine months of an employee’s salary to hire and train their replacement.
In addition to these hefty expenses, it is also necessary to account for the time spent training the employees, who sometimes need up to a year to match the productivity levels of their predecessors. While this decrease in productivity translates financially, this constant switching also impacts other employees’ morale and in turn, their own willingness to stay in the company.
To put a halt to this trend and boost employee morale, organizations must paint themselves as an appealing workplace for the long term. First impressions are where the seeds for change are planted. A study by Aberdeen Group found that 86% of new hires determine if they stay or not at their job within the first six months.
The onboarding process can give prospective employees a glimpse into company culture and shape their perception of their future workplace during this critical time. A good impression fosters a willingness to stay, whereas a negative impression can make the turnover problems even worse.
Effective onboarding procedures should help new employees become familiar and comfortable with their new working environment, but they should also provide all the tools and information that workers will need to perform their job efficiently.
Furthermore, the hiring department should strive to set up and manage employee hires, separations, trainings, and other events across multiple departments on a consolidated management plan to avoid confusion, unnecessary repetition, and process mix-ups. Confident employees who trust their company’s processes are less likely to abandon a business.
ServiceNow recognizes these challenges and provides an onboarding platform where new employee can thrive. Both new hires and managers are delivered all necessary information through an easy to use platform interface that eliminates errors and frustrations. It boasts the following features:
If you would like to drastically improve your onboarding efficiency and provide employees with outstanding service during a critical time in their employment timeline to reduce turnover, please feel free to reach out to one of our experts.
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