Employee Onboarding is BROKEN

Image by “kashivan” via DeviantArt

And this shouldn’t be a surprise to anyone as most (if not all) of us have had the unfortunate experience of joining a new company and realizing that “onboarding” to that new company consisted of very, very little.

Well, let’s be generous for a moment, shall we? Your onboarding might have consisted of an “orientation” of sorts (if HR managed to schedule it and the required people showed up), a few logins and key credentials that were found/discovered via people’s memories (or random scattered docs and emails from inboxes), a few celebratory high-fives (or virtual pats on the back via the resident internal communication app), and some swag to take home (e.g. mousepad, mug, a t-shirt, and stickers).

Heck, you may have even managed to get your notebook computer setup (but still waiting on access to core systems) and let’s not even get into benefits and payroll.

Sound familiar? And the result? Feelings of isolation, confusion, anxiety, and displacement, which completely short-circuited the emotional high that had been built up until this moment, the first day on the job, and utterly destroyed by the lack of a system or anything remotely close to resembling a process, that stopped momentum, productivity, and seriously impacts the outlook of the new employee in their new place of work.


You see, that first day on the job was meant to validating point of the new employee’s decision to join, to mark the beginning of an incredible new journey, and the ball was completely dropped.

The potential for making a killer first-impression disappeared quicker than a penniless startup idea and the employee starts their first day disappointed.

Even more sad is the fact that this is a systemic issue across the boards, in all categories of companies and in every industry. This is sadly a common place issue for every size company.

But the loss of morale is just the start. The fiscal loss is astronomical: Let’s just go through a few facts to level-set and provide some context, shall we? Get ready to have your #mindblown:

  1. A staggering 25% of companies do not have a formal onboarding program which ultimately leads to 60% of company attrition.
  2. Organizations lose 25% of their new staff each year while 22% of all staff turnovers happen in the first 45 days of work.
  3. 50% of all senior roles fail within the first 18 months, with initial onboarding being cited as a part of the justification for their departures.
  4. 35% of companies spent $0 on onboarding while they spend an average of $11,000 to recruit new hires! It then costs, on average, 25% of the lost employee’s annual salary to replace them, upwards of $65,000!
  5. 60% of companies do not set goals or milestones for their employees, which is most important in the onboarding stage of a new employee’s lifecycle, which results in…
  6. $37 billion (yes, that’s “B”, billion) are lost in productivity each year in the US and UK due not fully understanding their job roles, responsibilities, and expectations.

(A few images to help you visualize — consider and then share them.)

But, not all is lost as the flip-side of the coin offers a very compelling, exciting, and somewhat obvious story:

  1. 70% of new employees will stay up to 3 years if the onboarding program is effective.
  2. 30% of organizations who continue to update and re-evaluate their onboarding processes are consistently shown to be better positioned to respond to the changing dynamics of the workforce and employee trends.
  3. 66% of companies with strategic onboarding have a significantly higher rate of successful pragmatic and cultural assimilation, experiencing over 54% greater new employee productivity, and a 62% increase in time-to-productivity ratio, which results in…
  4. Over 50% employee retention, thus saving significant capital costs to replace staff or hire new employees.

(A few more images to help you visualize — consider and then share them.)

Again, mind-freaking-blown.

Managers, business leaders, and staff are all dying for a real, scalable solution, not just because of the obvious pain of experiencing poor onboarding but because there is literally money being left out on the table in terms of productivity and performance!

The future of your business is at stake (but you already knew that).

There’s a better way, a new horizon.

Now Is the Time

You’re not alone — everyone agrees that it’s about time someone do something about this epidemic and 71% of companies have explicitly expressed that they are in the market for a new, exciting, and functional solution that can provide both a significant short and long-term competitive advantage.

And that makes a lot of sense because in today’s hyper-competitive market for top talent it’s been shown that more than 50% of top recruits use onboarding documentation and corollary material to make their decisions around “cultural fit” and ultimately their interest in the company.

How it feels to “win” and close that killer candidate.

In other words, your onboarding system is in the direct line of fire for hiring and winning (or losing) your top candidates.

And you want to win 100% of the time.

In summation, the costs are unbelievable (and heartbreaking), the opportunity for significant business value is obvious and self-evident, and the market is ripe for a new type of tool for the modern workforce.

And so that’s what we’re setting out to build — and we need your help.

We know that fundamentally the best products are ones that have market and research validation and so we’re spending the next few months actively listening to your organizational challenges, your “war stories,” if you will, and the dreams and wishes that you have for an amazing onboarding tool.

To start, we’ve got a short survey that we’d love for you to take (and then share with all your buds!):

Please give us a few moments of your time! THANK YOU!

Ultimately, we want to hear from you!

  • We want to hear from business owners who struggle onboarding new employees into productive roles quickly.
  • We want to hear from HR and PeopleOps staff who dream of better tooling and systems.
  • We want to hear your stories from onboarding at a new company and what would have made it better.

Feel free to email me (info@trytomo.com) at any time and let’s have a chat!

Time’s a wastin’.

Finally, if you’ve made it this far, a few more things:

  • I’m looking at connecting with like-minded folks who may be interested in helping me piece together this amazing project: info@trytomo.com
  • I’d love to help consult and learn from your org — if you’re interested, I’d be interested in visiting your office IRL or virtually and chatting with your HR / PeopleOps about your current systems. You win, I win.
  • Follow the project on Twitter: @TOMOHQ
  • Subscribe to our Email Newsletter (via MailChimp — no spam!)

I can’t wait to share more about what I’m working on and get onboarding fixed for good. We can do this. We have to.

What You Should Read Next…

Take a quick look at the History of Organizational Onboarding and how it hasn’t really changed for centuries.

Time for things to change.
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