If you are having the problem of new employees, who were “perfect for the job” leaving the organisation, it may have something to do with how they were onboarded at the start.
Onboarding is the process by which newly hired employees gain the necessary knowledge and become effective and engaged members of your organisation. Onboarding is not an overhead or a nice-to-have, it is essential for a business to thrive.
When employees decide to leave, not only is corporate knowledge walking out the door, the cost of that turnover to your business is substantial!
They disengage and lose interest, often before actually resigning. Their attitude and work ethic changes and productivity slides and the losses don’t stop there. According to research reported in SenzaCarta’s whitepaper, it can take at least 68 days to refill positions after someone exits.
In the meantime, existing staff and teams are carrying additional workload and impact due to staff loss. Add to this, the actual cost of the replacement which is estimated to be as much as 50% of their annual salary (advertising, interviewing, selection process, reference and other checks, induction, training, coaching etc). Let’s demonstrate with some figures:
For someone on an annual salary of $55k, their replacement cost is 50% and therefore, $27500. Then multiply this by the number of people on equivalent salary exiting the organisation. So, if attrition numbers are 3 per year, the cost to your business is $82,500!
This means additional profit required to be at the same financial position if you meet your annual profit target.
On the flipside, a small investment in an onboarding process can lead to greater staff retention and new hires reaching full productivity more quickly. What if the onboarding process could be automated? What if it commenced before the new employee arrived for their first day?
If this is of interest and you are keen to find out more, contact Verity Consulting for an obligation free introduction to the SenzaCarta onboarding method at [email protected]