Aberdeen Group: Onboarding 2013 Report
I remember when the term “onboarding” was so new that it raised eyebrows when brought up in many conversations. It quickly became THE hot topic in HR and is still one of the biggest trends and strategies that we find organizations focusing on. Earlier this year, Aberdeen Group surveyed 230 organizations to gain an understanding of the best practices that organizations are using to transform basic new hire orientation into strategic onboarding initiatives. Below is a summary of some of the key points and data elements that came out of the study, many of which may surprise you. Feel free to download the full report for more detail.
- Companies that are considered “best-in-class” are doing the following as it relates to onboarding: defining metrics and ensuring agreement from key stakeholders, they consider innovative technology options for onboarding, and they balance both the tactical and strategic elements of onboarding.
- Many organizations are still fairly immature in their approach – only 37% of those surveyed have invested in a formal onboarding program for longer than two years.
- The top objective for getting a strategic onboarding program in place is getting employees productive more quickly.
- The research found that 90% of organizations believe that employees make the decision to stay or leave within the first year, however only 2% of organizations extend the process that long. Only 15% extend it beyond 6 months.
- Organizations considered best-in-class have focused primarily on new hire socialization, whereas lower performing organizations have focused their onboarding programs on more tactical items such as forms management.
- The best performing companies actually improved customer retention by 16% and revenue per full-time employee by 17% through implementation of a strategic onboarding program.
- One of the key tactics to having a successful onboarding program is establishing clear ownership of the program.
- A critical aspect in the ability to successfully turn an onboarding program into performance and growth is to select and implement an onboarding technology solution. SilkRoad RedCarpet onboarding customer, ebay, is highlighted in the full Aberdeen Benchmark Report, stating that they were able to eliminate the administrative cost of onboarding by 25% and reduce the number of steps in the onboarding process by 60%.
- A centralized approach to onboarding is at the heart of a successful program.
These are just a few of the data points available in the full report, but it shows us that there’s a huge opportunity for organizations to impact performance and the bottom line with successful onboarding. Tell us…do you have an onboarding program in place? Is it automated? What’s the impact been on the business?