The average employee retention rate in the United States ranges from 70% to 85%. Considering that a "good" retention rate is 90% or higher, those figures offer room for improvement—that’s where onboarding can help. Onboarding is all about how organizations integrate and prepare new employees for new roles, and when done correctly, directly improves retention rates, employee engagement, and productivity.
You might already be familiar with recruiting and employee orientation, but what about the employee onboarding process? Often, organizations feel that if their orientation seems good enough, there is no need to focus on or work to improve their employee engagement onboarding process. However, it is worth the effort, particularly If you're interested in retaining your employees, making them part of your company's values, and functioning as a productive organization.
Much has been written about the benefits of onboarding—the reduction in manual effort, the reduced time to productivity, and increases in employee retention. Published data builds the case for a strong ROI as well: UrbanBound estimates that UK and US companies spend $37 billion dollars annually to retain unproductive employees who don’t understand their jobs, while, amazingly, 35% of those companies spend $0 on onboarding.
These statistics show how much is wasted by poor or nonexistent onboarding, but what are some reasons for investing in more sophisticated onboarding processes? Through better onboarding practices, employees are more likely to see the benefit of working for your company. This ultimately leads to employees wanting to engage and contribute more to their work.