4.1.3 Your Return on Investment for Doing Onboarding Well

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Do curso por University of Minnesota

Recruiting, Hiring, and Onboarding Employees

719 ratings

University of Minnesota

Recruiting, Hiring, and Onboarding Employees

719 ratings

Curso 2 de 5 em Specialization Human Resource Management: HR for People Managers

Finding and hiring the right people is often cited as the number one concern of businesses today. It seems we are all competing for the best and brightest workers. As you will see in our time together in the second course, a critical component of the People Manager Value Proposition is to hire talented people who enable the organization to achieve its strategic goals. This course is an introduction into the topic of recruitment, selection and onboarding. At the outset of the course we will explore the importance of linking recruitment goals with overall company strategy. We then look at a number of options to recruit and select employees both effectively and legally. Throughout the course we will examine current issues in talent acquisition, such as how companies are now leveraging social media and hiring analytics to ensure better quality hires. At the conclusion of the course, we look at how to onboard employees to promote employee commitment and engagement.

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Special Topic: Onboarding

In module four we will be talking about bringing on your new hire. Having just recruited and hired a new employee, you want to be sure that new employee gets up to speed as quickly as possible and becomes an engaged and excited member of your team. Module four will talk about how to work through a great onboarding process and why that matters to an employee's engagement with the organization.

4.1.1 About Stacy Doepner-Hove and Definition of Onboarding6:07

4.1.2 Onboarding as Part of Employee Engagement5:38

4.1.3 Your Return on Investment for Doing Onboarding Well4:52

Conheça os instrutores

Amy Simon
Senior Lecturer
Department of Work and Organizations
Stacy Doepner-Hove
Director, Masters in Human Resources and Industrial Relations program
Carlson School of Management, Department of Work and Organizations

This is lesson 4.1.3, your return on investment for doing this well.

We all know that many managers are really overworked, and employee engagement and

onboarding just seem like one more thing to add to your plate.

And even if the human resources department is putting out some kind of new employee

engagement program or new onboarding program, why can't you just have that?

I mean, why do you really care about doing something within your own department?

Truly, what is in it for you?

Is there a bottom line impact on having good onboarding and strong engagement?

So what is the return on investment for employee engagement and good onboarding?

There are actually a number of researchers exploring just these questions, but

let me point out two well established examples

of an employee engagement return on investment.

These both come from the Corporate Leadership Council, but

the first is called the 10:6:2 rule.

Every 10% improvement in commitment can increase an employee's effort by 6%, and

every 6% improvement in effort can improve employee's performance by 2%.

So, an engaged employee,

Works harder.

And works better.

There's even a website that offers a free calculation of how much of a return on

the investment you can have with a more engaged work force.

Check out the link in the resources section of this lesson.

The other rule is every 10% improvement in commitment can decrease

an employee's probability of departure by 9%, so engaged employees,

Lower turnover.

So why does that matter?

Employee turnover can be a huge cost to any organization.

There are separation costs,

meaning if you need to get this employee out of the organization for some reason,

or even if they're leaving voluntarily, it can cost money to go through that process.

Money and time, those things will add up.

Then there are the vacancy costs.

So as the employee is gone,

there are costs associated with no one being in that position.

Time, energy,

expectations not being met because there's someone not doing that job.

And of course we all know that there are replacement costs.

The costs in time and money for advertising for

the position, spending time interviewing, and then hiring,

and going through the offer process, it could be a lot.

And then you have the training costs for the new employee.

How much is it going to take you in time and money and

effort to bring the new employee up to the place where the old employee was?

Some estimates range from 25 to 30% of his salary to 100 to

150% of salary, or even for executives three to five times the salary and

benefits just to get a new person onboard.

So you will want to try and keep the employees you have and get them and

keep them engaged as quickly as possible.

How many days do you think it is before a new employee starts thinking about

finding a new job?

The first 90 to 100 days of an employee's tenure, often called re-recruiting,

Can be the difference between an employee who stays for a decade and

one who's gone before the year is out.

This comes from Michael Watkins and his book The First 90 Days, and

it is a great example of really what you need to do in that first 90 days,

those first three months of your new hire's tenure.

You need to re-recruit them.

The need to prove themselves to you, but you also need to prove to them this is

a good place for them to work, it was a good choice for both of you.

So onboarding has a direct impact on your bottom line.

Like it or not, as a manager you play a vital role in employee engagement and

onboarding your employees into your new team.

You matter in the life of your employees.

Creating a strong onboarding program for new hires you've just spent so

much time and money and energy hiring, will be worth your time and effort.

In the next lesson,

we're going to talk about how to structure an onboarding program.

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