This is the fourth post in the 5-part Growing Your Team series. Click through to catch up on The 4 Phases of Growing Your Team, The Planning Phase, and The Hiring Phase.

The part of the hiring process that is arguably the most important (especially to your new team member), but is frequently undervalued and glossed over is the Onboarding Phase.

One in 4 new hires quit within their first 90 days on the job (and recent studies are starting to show that this number is edging closer to 1 in 3 these days).

Not only is it frustrating when an employee quits, it’s also very expensive. A study from the Society of Human Resource Management (SHRM) found that replacing an employee can cost between 33% – 50% (or more, depending on their role) of that employee’s annual salary or wage. This means that if you’re paying an employee $40,000 per year and they leave, then it will cost roughly $13,200 – $20,000 to replace them. Yikes!

This post is the second in a five-part series on Growing Your Team. If you haven’t checked out the first three posts, you can do that here, here, and here!

The cost of replacing an employee may seem high until you consider what’s included:

• Posting the open job

• Finding and recruiting candidates

• Interviewing time and follow up

• Background checks and drug tests

• Pre-employment test projects

• New hire paperwork

• Training and learning time

• Lost productivity and knowledge

• All of your time to do these things

• And so much more

While this might feel like a bit of a gut punch, there is good news! As employers, we have a great deal of control over whether our employees stick around or hit the road. In fact, a 2021 Workplace Learning Report conducted by LinkedIn found that 94% of surveyed employees would stay longer if a company invested in helping them learn. 

NINETY-FOUR PERCENT! That’s a huge deal. So let’s explore ways you can keep those amazing team members you spent so much time, money, and heart hiring!

Before we dive in, here are a few mindset shifts to help you get into the onboarding flow:

Onboarding...

• saves me time, money, and resources.

• helps me welcome new team members with intention.

• provides necessary support for new team members.

• reduces confusion, uncertainty, and frustration.

• creates a culture where employees are excited to stay. 

Now, let’s take a look at some great resources that will help you knock your new hire socks off during the Onboarding Phase and stick around for years to come!

Keys Questions + Resources for the Planning Phase

1. Why do 1 in 4 employees quit in their first 90 days?

Let’s start with 3 of the most common reasons new hires quit in their first 90 days:

• Lack of Clarity Around Role – 43% of employees report that their day-to-day role wasn’t what they expected (Jobvite). This can be due to a lack of clarity around the role you’re hiring for, a poorly written (or nonexistent) job description, or by painting a better picture of the company than what exists (either intentionally or unintentionally) during the interview process. 

• Poor Company Culture – The reason 32% of employees quit, according to the same study, was due to poor company culture. Here’s the catch, your culture isn’t what you think it is or would like for it to be. It’s the actual lived experience of your team members. Which means, you need to be open to asking for and getting feedback about how things really are – then be willing to make adjustments as needed.

• No Structured Onboarding Process – No matter how amazing your new hire is, they aren’t mind readers and they likely know absolutely nothing about the inner workings of your company. Onboarding is about so much more than signing a few tax forms and having your new hire log into their email account for the first time. (See more about what should happen during onboarding below!) There’s a difference between orientation and true onboarding. And without proper onboarding, your new hire could be swimming in confusion and frustration, which doesn’t leave them with a great first impression.

2. How can I make sure my new hire doesn't quit in their first 90 days?

While no one can guarantee that your new hire won’t quit, I can assure you that with a proper new hire onboarding process the chances of them doing so are greatly reduced.

A study conducted by Glassdoor found that great employee onboarding can improve retention by 82% AND improve productivity by 70%.

Yet, another study by Gallup found that 88% of organizations don’t onboard well.

Glassdoor also conducted employee onboarding surveys where they found:

• Employees who rated their onboarding experience as “highly effective” were 18 times more likely to feel highly committed to their organization

• 91 percent of employees who went through effective onboarding felt strong connectedness at work

• 89 percent of employees who went through effective onboarding felt strongly integrated into their company culture

• 49 percent of employees who went through effective onboarding reported contributing to their team within the first week.

This is a pretty big opportunity for businesses to do better for their employees and for their company’s overall performance and success.

3. What exactly is employee onboarding?

This Instagram post about Your New Hire's First 90 Days does a great job of defining onboarding in simple terms. 

Onboarding is the time when new employees of a company – or new employees to a position (yes, that’s a thing too!) – are introduced to and gain the necessary knowledge, skills, and behaviors they’ll need in order to be an effective and productive member of your team.

It’s no wonder why so many new hires leave within the first 90 days when there’s no structured onboarding program, right? It’s where everything important happens!

4. What should happen during onboarding?

During Onboarding, you should focus on helping your new employee acclimate to the company and culture, learn about their role and responsibilities, start participating in meetings and projects, connect with their fellow coworkers and/or the clients you serve, and start setting and tracking goals and progress.

In this episode of The Lawyerist podcast, I go into great detail about the onboarding process, including what it means to onboard new employees, why it matters, and what it looks like in a business. (Even though this podcast is geared toward lawyers, the topics we discussed in this episode are relevant to all small businesses.)

I also came across this great podcast episode on Mental Health in Minutes by fellow HR professional Shahzia Noorally about cultural competency, connection, and creating space for people to be human in your onboarding process, which I loved.  

5. How long does onboarding last?

As you can see from the question above, a lot goes into the onboarding process. Which is why onboarding shouldn’t take place during just one day, one week, or even one month. 

Since the majority of people are going to quit early on (those first 90 days), your onboarding program should last a minimum of 90 days. This is the “make it or break it” time period with any new hire. 

An employee’s initial impression and experiences in their first 90 days will directly impact their long-term:

• Engagement – how much they care about their work and the effort they give;

• Retention – how long they stay employed with your company; and

• Performance – the quality and quantity of their work (and how quickly they get up to speed and meet your performance needs and expectations).

These first 90 days are also essential for employee connection and happiness, both of which are major indicators of employee performance and success. 

Now, if you really want to create the best experience possible for your new team members and maximize the return on your hiring investment, it’s highly recommended that onboarding take place over the entire first year a new employee is with your company – and any time they change roles within the company (although that time frame can vary greatly depending on the situation, role, and individual involved).

Final Thoughts

When we skimp on properly onboarding our new team members, it can leave them feeling disconnected, confused, and frustrated – and like their only option is to quit.

If we make the decision to grow our teams, we also must take ownership of the responsibility to provide a great onboarding experience for our new hires. Especially if we expect them to be able to do their best in the role we hired them for.

When planning your onboarding program and experience, remember to:

• Be intentional

• Plan ahead

• Focus on the experience

• Provide support

• Ask for feedback

You’ll also want to understand what it takes to build a team you can trust, so that you get off to a great start with your new hire. 

Ready to create an engaging, effective, five-star experience for your new hires? We’d love to help! This is something we work on with our clients in our Leadership Mentoring program, which is a 12-week one-on-one experience customized specifically for you and your team. Learn more and book your free discovery call today.

In the next post in the Growing Your Team series, we’re going to dive deep into the fourth and final phase of the process, which is the Leading Phase. I can’t wait to share all the details with you about this important part of growing your team!

Authored by Ashley Cox, PHR, SHRM-CP