Once you acquire the right talent, leading companies put them in a position to succeed as fast as possible.
According to Aberdeen's latest research, best-in-class onboarders have a 53.5% better retention rate, create 57% higher performance, and report 20% greater hiring manager satisfaction.
That adds up to greater productivity and significant cost savings.
In a recent survey, 210 CEO's estimated the time for a typical mid-level manager to reach "breakeven" as 6.2 months. Using an average salary of $100,000, the difference between a 3-month ramp and a 6.2-month ramp is approximately $26,500 per employee.
This does not account for differences in revenue, margin, utilization, or productivity. It is only the salary side of the equation. For a company hiring a minimum of 100 new employees per year, this creates a $2.6m window of opportunity for an improved new hire process. For companies closer to the 24-month mark, the opportunity is as large as $17.5m.
In addition to the financial side of the equation, making first impressions count and getting new employees up to speed quickly can make or break a strategy or project.
Despite the compelling impact the effective on-boarding has on customer retention (4X), customer satisfaction (2.8X), and revenue (2.6X), 36% of organizations surveyed lack a formal on-boarding process. Where do you stand?
Learn more about key on-boarding best practices...
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned
