3 Ways New Hire Training Can Positively Impact Your Bottom Line
It’s a lot of work to hire a new employee - you’ve lived it, you know what I’m talking about. So why do so many companies put all of their efforts into hiring an employee, and then neglect to set the new employee up to succeed? I don’t understand it, but I can use numbers to demonstrate the reason it shouldn’t be happening. Here are a few reasons why New Hire Training is crucial to your business success.
Retention
According to O.C. Tanner, “69% of employees are more likely to stay with a company for three years if they experienced great onboarding” (source) In other words, a great onboarding experience, which typically includes training, is critical to employee retention. If we take this one step further, we know that upon average, it costs $4000 every time you have to hire a new employee (source) - though, it can go as high as two times the employee’s annual salary (source). As a result, it’s a no-brainer that it saves your company significant money to retain existing employees in the first place, instead of having to go through the rehiring process. How many times a year does your company experience turnover? Multiply that by $4000 as a conservative estimate.
Effectiveness
Research by Glassdoor found that organizations with a strong employee onboarding process improved productivity by over 70% (source). What does a 70% productivity improvement mean for your company? I bet it’s significant, especially when multiplied over a number of new employees. An effective new hire training program will help integrate your new employee into the team and will give them the knowledge and understanding of all of your internal processes to succeed. It also ensures they understand their role and where they fit in the organization, thus allowing them to contribute more effectively to the company’s overall goals.
Engagement
According to the Society For Human Resources Management, 54% of companies with onboarding programs reported higher employee engagement (source). Happier employees are productive employees - they’re also willing to go the extra mile to get things done. While harder to quantify in terms of dollars, there’s no doubt the impact that new hire training has on engagement, and engagement has on productivity, is positive.
The ROI
Add up the cost savings as a result of improved retention and increased productivity resulting from a well-trained and engaged team. I bet the costs are significantly higher than the cost of developing an effective new hire training program.
If you’re ready to discuss your new hire training program, reach out. We’d love to chat!
HIGH TIDE LEARNING STUDIO
We’re Erin and Peter, a husband and wife team passionate about making your organization successful through employee training and engagement. Join us as we explore new opportunities to improve your workplace.