Many business owners and HR managers believe the process of bringing an employee onboard is important, but most also believe it’s underutilized in their own businesses.
This has led to a situation where many HR professionals are rethinking the purpose of onboarding and how it’s executed in their organizations. If you’ve been pondering your own process, you might want to consider these statistics.
1. Canadian Employees Are Less Loyal to Their Employers
Canadian employees are slightly less likely to stick with an employer than their global counterparts, according to ADP Research Institute. Their latest survey found just 57 percent of Canadian employees exhibited employer loyalty, as compared to 70 percent in other countries.
This is an important statistic to consider when you think about onboarding because other studies have shown employees who report negative experiences are more likely to leave. Given Canadians don’t show a lot of employer loyalty, this could mean few Canadian companies are delivering great onboarding experiences. It could also mean those Canadians who do have poor experiences are even more likely to leave than their global counterparts.
2. More Than Half of the Workforce Will Be Younger by 2030
According to research by the Business Development Bank of Canada (BDC), the Canadian workforce is rapidly shifting. By 2030, about 50 percent of the workforce will be dominated by two generations: Millennials and Generation Z.
This is important for HR managers to note because Millennials are already expecting and demanding revisions to onboarding processes. Younger employees are more likely to put the meaning of work before pay and benefits, which means they put increasing emphasis on how they’re treated, the values a business holds, and the onboarding process.
3. Employers Look to Reduce Turnover
As mentioned, employees are more likely to leave if they have a poor experience when they’re onboarded. As such, about 41 percent of employers in Western Canada are looking to make improvements to their processes to reduce turnover.
It’s no secret turnover can be costly. The costs are often higher than people anticipate, exceeding even the employee’s annual salary. Negative effects of high turnover include a loss of productivity and lowered revenue.
It’s clear why reducing turnover is high on many employers’ lists. What’s more is that many employers want to keep their talented employees. Your people are one of your most valuable assets, and treating them well during the onboarding process and beyond will help reduce turnover.
4. Leading Employers Keep 70 Percent of Employees
There’s good reason to believe more attention to onboarding employees will help a business reduce turnover. Research has shown employers with leading programs successfully onboard employees and keep them for three years after. The retention rate in these companies is as high as 70 percent over the three-year period.
Other studies have shown about half of all employees leave within their first four months. This speaks to a poor experience in being onboarded. An employee who has a good experience is more likely to enjoy working at the company for the long term. Those who have a negative experience from the start are more likely to leave when they see a better opportunity.
Revisit Your Process
If these statistics have you reconsidering how you onboard new employees, you’re not alone. Most companies are currently in the process of updating their procedures to ensure they onboard employees in a more positive and constructive way.
When you onboard an employee, you’re setting the foundation for their time with you. Good communication, goal-setting, and more can help you provide a better experience for each new employee you bring aboard.
