Onboarding Cost

Onboarding: Not just for employees anymoreTrue, employee orientation centers around and exists to help the individual employee, but it is the company that ultimately reaps the benefits of this practice. Consider the following benefits of proper orientation:

• Reduces costs associated with learning on the job
• Saves co-workers and supervisors time training the new employee, thereby increasing production
• Increases morale and reduces turnover by showing the employee he/she is valued

U.S. and U.K. employees cost businesses an estimated $37 billion every year because they do not fully understand their jobs, according to IDC.

Not convinced? U.S. and U.K. employees cost businesses an estimated $37 billion every year because they do not fully understand their jobs, according to IDC. Their recently released white paper, "$37 billion: Counting the Cost of Employee Misunderstanding," commissioned by international intelligent assessment company Cognisco, quantifies the losses that occur as a result of "actions taken by employees who have misunderstood or misinterpreted — or were misinformed about or lack confidence in their understanding — of company policies, business processes, job function or a combination of the three." Effective onboarding helps workers understand their roles and the company they work for, thereby significantly cutting these losses.