How Your Revenue is Effected by the Quality of Your Onboarding Process
We all know how important first impressions are for a business. But did you know that this same principal applies to your new employees? How your business starts off its relationship with its new employees will dictate the type of relationship your new employees will have with the overall business and with your customers.
Studies have consistently proven that approximately 90% of employees make their decision to stay at a company within the first six months. If you go through the trouble and expense of finding the best, and investing in them, why not give them a world-class orientation and onboarding experience so they want to stay?
While onboarding focuses primarily on signing and processing new employee paperwork, orientation acts as a very close and personal introduction to a company’s culture, employment brand, employees, mentors and ongoing business objectives. It can last anywhere from several months to as much as a year.
Companies that use well-thought out and well-planned orientation and onboarding programs for their employees see higher revenue and profit margins; retain more customers; acquire a stream of new customers; experience less turnover and have happier employees. According to the Aberdeen Group, organizations with structured onboarding programs enjoy a 60% year-over-year improvement in revenue per full-time employee and a 63% year-over-year improvement in customer satisfaction. Here are some of the other benefits of a well-planned orientation and onboarding program:
- Employees are engaged and connect to the culture of a company, which leads to lower turnover and higher retention at a fraction of the cost of recruitment.
- New hires become productive faster, helping them add to the bottom line.
- Makes employees feel valued which will bring out a sense of loyalty and desire to make the relationship work.
- A motivated workforce means your customers will see happier more efficient and knowledgeable employees thereby improving customer retention and growth.
- Employees understand their contributions to the business and are more productive and educated about the company and its products giving them the confidence needed to be great at their jobs.
Successful companies capitalize on the first impression because their bottom line proves the better relationship a company develops with their customers as a result. And by the same token, a better first impression to a business’ new employees guarantees a better employee and an even better bottom line.