For most companies, on-boarding new hires is just a “step”, a requirement that has to be met in order to check all the boxes, especially those that are legal in nature. But this mindset is proving to be detrimental to businesses, as not investing properly in this crucial step costs them down the road in terms of employee retention and revenue.
According to statistics published in an Urban Bound article, “organizations with a standard on-boarding process experience 54% greater new hire productivity, along with 50% greater new hire retention.” The companies that don’t invest will, however, spend an “estimated $37 billion dollars annually to keep unproductive employees who do not understand their jobs,” and that’s just in the UK and the US. Even more worrisome is this statistic: 35% of companies spend $0 on on-boarding.
And this is where, we believe, a true distinction needs to be made. Because on-boarding has been a concept that has been around for some time, trying to change the basis of understanding surrounding it is an uphill battle – and one that doesn’t necessarily need to be made.
Embedding, on the other hand, is a lesser known term, and one that better describes what really needs to take place in order for new hires to be integrated into workflows, systems, and cultures. After the initial, almost hygienic, on-boarding process takes place, embedding should begin and it should include things like:
- Meeting colleagues on their team, in the department, and across departments
- Understanding the corporate culture
- Clarifying the work, the goals, the processes
At the end of embedding, the ultimate goal is that new employees no longer feel “new.” Instead, they should feel like a part of the team, a welcomed addition that is both confident and comfortable. By doing so, companies can begin to appreciate:
- Reduced employee turnover rates
- Higher employee productivity
- Increased morale
- Improved work culture and environment
So, for those companies continuing to invest little to none in on-boarding, that’s fine. Invest your money in embedding instead, and see how much more efficient, happy, and valuable your new hires become.