It is vital for winning the support of your management team with a clear business case for employee onboarding software you want to invest in. How well they understand and support the plan will determine how they communicate it to their direct reports and follow it for new hires.

Make the business case for employee onboarding software with these 5 talking points that drive home the business value.

1. Employee onboarding strengthens employee engagement and retention

Not only are managers evaluated on employee turnover rates, but the entire workplace is impacted when employees quit at a rate higher than the industry average. Recruiting costs increase, customer service suffers, colleagues are burdened with more work in the form of unplanned terminations, and management feels the strain of it all. What follows is a breakdown in company culture evidenced by poor workplace morale, increased absenteeism, and decreased engagement among employees.

Employee retention and engagement go hand in hand. Despite this widespread awareness, employee engagement continues to suffer.

Research has shown, time and time again, that onboarding has the power to influence whether new employees decide to remain with or leave an organization.

Here are just a few results from surveys on the topic of turnover, engagement, and onboarding:

  • When Gallup asked employees about onboarding, 88% indicated that they did not think their organization was good at onboarding, and only 12% of employees agree strongly that their organization does a great job of onboarding new people.
  • Findings from another study published by the Society for HR Management showed that 86% of new employees decide whether to stay with their new organization within the first few months.
  • An article in Harvard Business Review 87% of employees worldwide are disengaged

A good onboarding plan starts in the pre-boarding phase to initiate your new hires into the company culture. They feel like a part of the time on their very first day on the job. The onboarding process continues to instill a fabulous employee experience over their first weeks and months. The result is increased engagement and reduced turnover.

2. Shorten the time to maximum performance for new hires

Organizations recoup the highest onboarding return on investment in the area of time-to-productivity or maximum performance. This is the time it takes an employee to deliver optimal value to the organization.

We have found that a well-designed science-based onboarding program with supporting tools reduces time-to-productivity for new employees. Organizations with a standardized onboarding process experience 50% greater new-hire productivity reducing the time to add real value to the company or organization versus those companies whose process is unstructured.

Like any other investment, the cost of recruiting and onboarding is expected to be recouped by a return of value to the organization. Called the “return zone” in the diagram below, the return begins before the new hire even starts their first day on the job. That is, with a good onboarding plan.

How can that be? For one, the connection to the team is being developed which strengthens company culture. Secondly, a good onboarding program creates employer branding value that attracts top talent. Read on in the next talking point for more details.

Make the case for employee onboarding

3. Improve employer branding to attract top talent

Brands create an image and public perception using language that is strategically curated for the brand and which upholds the brand’s tone of voice and personality. Image and reputation make up the two major components of an employer brand. This conveys the employer’s Unique Value Proposition, or UVP, and is used for marketing and job postings for all channels.

Potential candidates are influenced by social media conversations, review sites, negative word of mouth, and information from personnel connections. These all affect the likelihood of applying to your company and accepting your job offer. One source puts research via personal connections at a massive 46%. Popular websites like Glassdoor, where employees rate their employers, are commonly used by employees to see if they want to apply or choose a job.

Good onboarding is good employer branding
Source: https://www.glassdoor.com/employers/solutions/reviews/

Bad onboarding is a common theme when it comes to poor employee reviews. Investing in the employee experience in the onboarding phase is critical for employer branding.

 

Get a free new hire onboarding cost and business case “calculator” to learn how much you can save!

Do you want to know the cost of onboarding a new hire to your company?

  • The average cost of onboarding a new hire is 30% to 70% of their annual salary
  • Recruiting and training are major costs, but time to productivity has the highest overall cost
  • Companies can save up thousands of dollars per new hire hired by maximizing the onboarding success


4. Stronger, happier, and inclusive workplace culture

Onboarding is one of the key ways through which organizational culture is formed, maintained, and changed. It starts the moment that a job offer is signed in the pre-boarding phase. The onboarding process should be designed to help the new hire determine if they are aligned with the company culture before their very first day on the job.

A pre-boarding message about the history of the company, assignment to a buddy, and information about resources are just a few ways that the pre-boarding process can help set the right course for your new hires.

Onboarding tasks like getting new hires to post in social networks and chat tools like Slack, Workplace from Facebook, Microsoft Teams help coworkers connect and share about themselves for a heightened sense of inclusion and familiarity.

As shown below, culture is at the apex of mature onboarding and optimal employee engagement.

5. Relieve the strain on managers and avoid burnout

Welcoming new employees is a mixed blessing for managers. On the one hand, they are relieved and hopeful for the value that a new hire can bring to a company. On the other hand, it can feel like a burden in the early weeks and months of onboarding. Indeed, a bad onboarding structure can increase the burden associated with new hires and therefore represent a strain on company resources and most importantly, the time of key onboarding stakeholders: managers, buddies, IT, and HR.

The right onboarding plan implemented by the right onboarding software will automate most of the tedious tasks that weigh down managers. As a result, they are able to focus on their job purpose and connect with their colleagues and direct reports.

Make the business case for employee onboarding software

By this point, you are prepared to discuss the benefits of a strategic onboarding plan. You have discovered any concerns your team may have about it and have explained the role of onboarding software. The last piece of the puzzle is the solution that will help implement and maintain your onboarding plan.

If your onboarding plan is the map, and your team is on the train, then the onboarding software is the engine that moves it forward.

Depending on the size of your workforce, onboarding software can do the work of one full-time HR assistant. Without software it is a time-consuming job to create individual emails, messages, reminders, follow-up, measuring, data storing, reporting, and more.

All of this can be completed with onboarding software to help save your management team time and strain associated with a manual onboarding plan.

Read this blog post from Preppio to learn how employee onboarding software drives onboarding success. Download the free PDF worksheet at the end of the article to help you and your team evaluate onboarding software solutions. 

A picture is worth a thousand words. A demo, even more.

Let us show you how it all comes together with a demonstration of Preppio’s onboarding software. Fill out this quick form to try it now: