BPM Advisory Team Writes in Employee Benefit News
By Jill Pappenheimer and Michael Sellai
Businesses sink a lot of time and effort into finding the right candidate for a position. One SHRM survey, for instance, found that the average cost-per-hire is more than $4,100 (and that is on the low end of estimates). However, all that time and money becomes immaterial if the employee has a poor and inefficient onboarding process.
According to one online survey, 93% of employers agree that a good onboarding experience is critical to determining a new hire’s decision to stay. Gallup’s 2017 State of the American Workforce report found that just 12% of employees “strongly agree” that that their employer does a good job at onboarding. Replacing an employee costs businesses an average of 21.4% of the lost employee’s salary. Businesses need to develop effective on-boarding processes that address this disconnect.
One fundamental source of this problem with onboarding can be attributed to the delegation of duties within a business. While HR professionals are generally in charge of posting positions, conducting screening interviews, extending offers, etc., typically it has been IT that is in charge of collecting employee information — setting up enterprise software accounts, assigning employee devices, deploying applications to said employee devices and everything else associated with getting employee to work on company IT. And while HR professionals use often-sophisticated human resources management systems, or HRMSs, to manage the hiring process, IT organizations are often starting from scratch when onboarding employees, lacking access to all the important information already collected during the hiring process that could save them significant time. This not only drags down IT organizations, but also makes it harder for new employees to get acclimated to their new organization and do their jobs effectively.