It's no surprise when we hear about the labour market being buoyant and a 'buyer's market' with candidates being able to cherry-pick their next move, particularly among shortage areas such as IT and engineering.
There is so much focus on attracting talent, many employers fail to give as much thought to onboarding and retaining good staff. The cost to businesses of replacing a member of staff is, on average, an eye watering £30,000. When you look at the harsh reality of the cost - let alone the hassle and workload impact on other staff members - of having to replace an employee, the knock on effects speak for themselves.
Coupled with this, workforce expectations are changing with employees expecting more flexible working arrangement, brought about by changes in technology and work life balance expectations. Workers also expect to move jobs, particularly to progress their careers - this is even higher among under 35 year old. This means people are on the move more than ever before.
This trend is supported by the CIPD's latest Labour Market Report findings published in May this year, which highlights that 33% of employers have found it harder to retain staff compared to the previous quarter.
The benefits of getting onboarding right first time speak for themselves - not only do employees who have a positive onboarding experience stay longer, they are also more engaged with the organisation and 21% more productive, according to Gallop, so everyone's a winner!
Employers need to think more holistically about the employee lifecycle rather than slicing activity into neat silos of 'recruitment', 'onboarding' and 'staff engagement' to suit their internal structures. Each stage is interdependent and needs to be addressed as such to ensure a streamlined and strategic approach to workforce planning.
Why onboarding matters Onboarding represents a ‘make or break’ experience that determines a new hire’s future engagement and ROI. Research shows that organisations typically lose 30% of new hires within the first 90 days of employment – in other words, 20% people will leave a new position within just three months. For some organisations, the turnover figure for new recruits can rise as high as 70% in the first year. According to the Advisory, Conciliation and Arbitration Service (ACAS), the average cost of replacing a single member of staff for a UK employer is £30,000. But the cost of replacing a senior executive can cost a business up to 213% of his or her salary. A poor onboarding experience and a high attrition rate costs both time and money.