When induction isn’t done well, it leads to low engagement and high early turnover. That sounds pretty conceptual, so how about we put some numbers around it.
Let’s go back to imagining that your company has 100 employees, with a typical 20% turnover, equating to 21 new hires per annum, or about one to two new per month. The stats say that 1 in 3 of those will have left within 12 months, so let’s say 7 left early. (In fact, according to research 22% of those left within 45 days.)
That means you’re wasting a huge amount of time and effort on:
- Re-advertising those 7 roles
- Re-viewing more applications
- Phone-screening more possibles
- Interviewing the best ones
- Organising 7 new contracts
- Waiting for the new hires to start
- Re-onboarding and inducting another 7 people
- Training another 7 to get them up to speed.
In money terms, estimates range from 20-100% of an employee’s salary. So let’s say conservatively that could be 50% of 7 x $60,000 salaries, which equates to $210,000!
Great induction can reduce early turnover by up to 50%, instantly saving over $100,000 direct costs.
Yet when someone joins the team and then leaves not long after, it also has an indirect cost, through the very negative impact on employee morale, business momentum and bottom line results.
Check out what your own company’s numbers look like, by using this easy ROI Calculator.
The Induction App has certainly helped, as seen in our latest comment: "my onboarding thus far has been phenomenal".