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Combat turnover costs by decreasing time to full productivity

Combat turnover costs by decreasing time to full productivity

How long does it take for a new employee to be productive?

First days are for training—or at least they should be. Except many employers and HR administrators are spending their employees’ first days writing and re-writing the same information onto numerous forms. As you can imagine, this onboarding practice consumes valuable time for the administrator and places yet another barrier between the new hire and full productivity.

Save money and decrease time to full productivity by providing a way for your new hire to onboard and enroll in benefits online. By taking onboarding and benefits online, employers provide new hires an avenue to complete these tasks remotely.

 

Measuring onboarding effectiveness

When employees enroll and onboard remotely, it means that they don’t have to be at work to do it. More importantly for employers, it means that employees don’t have to be on the clock when going about these tasks. So when payday comes around, the employer is cutting a check for productive employee training rather than for filling out paperwork.

The benefit of going online works two-fold as employees also benefit from this procedural change. A quality Human Resources Information System (HRIS) will guide the employee through each step of onboarding and enrollment while providing helpful resources along the way. When employees onboard and enroll remotely, they can make thoughtful decisions without the pressure of a ticking clock. By allowing employees time to think through their decisions, an employer encourages employees to act in their own best interest.

 

Reducing time-to-productivity

To understand why these days matter, let’s look at this situation from a managerial perspective:

Say an employee spends two days reviewing company documents and agreements, filling out onboarding paperwork and enrolling in benefits. The employee earns just over $24/hour ($50,000/year). Assuming the new hire works the standard 8-hour work day, the employer will be responsible for paying that employee $384. In the grand scheme of things, not such a big deal right?

Now think of turnover. According to the Society for Human Resource Management, the average overall turnover rate (separations divided by average employee count) in the United States is 18% each year. This relatively high turnover rate means that employers won’t just be incurring the cost of a single employee taking those two full days for onboarding and enrollment. Instead, that employer will be footing the bill for each employee that cycles through the company’s staff base.

While 18% marks the average overall turnover rate, some industries experience significantly higher turnover rates. Among these industries are: tech, retail and media. As you can imagine, a high turnover rate significantly impacts the amount of money an employer spends getting their staff up to full productivity and performance

 

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