Onboarding inefficiencies ‘costing UK businesses £200m a year’
Inefficiencies found in the onboarding process are costing UK businesses £200 million a year, according to new research by webonboarding, part of the webexpenses suite of cloud software solutions.
The research, which uncovered the costly findings, found that 15% of employees who leave in their first year, leave within the induction period. With a typical spend of £804 (in-house and externally) on recruitment costs per candidate and with nearly a quarter (24%) of HR decision makers’ time allocated to the onboarding process, losing candidates within the initial stages can lead to significant financial implications to the business.
While this data might support a greater focus on administration around the onboarding process, it’s worth reflecting on the impact on L&D as well. How many of the 15% of people who leave in their first year will have had a not insignificant amount of time and resources devoted to them to bring them up to speed on their employer’s values, polices and working practices?
When calculating the return on investment with regard to these leavers, is there anything that could have been done to either improve the prospects of retaining them, or perhaps reducing the cost of the original investment?
International Workplace is conducting research into ROI on onboarding as part of an awards submission process in 2017. Would you be interested in sharing your experiences with us in confidence about the onboarding process in your organisation, and how you calculate ROI? We plan to anonymise any data we are given and to share it back with the participants. If you’d like to be involved please email heidi.thompson@Internationalworkplace.com or call her on +44 (0)333 210 1995.