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Onboarding is not simply a nice way of making a new employee feel comfortable. It is also about business. In today's war for talent and related high costs of turnover, onboarding is critical to your organization. Getting your employees off to the right start may mean the difference in whether they stay with your organization or whether they have "buyer's remorse" and decide to leave. Retaining your newcomers can often pose a challenge as most turnover occurs during the first few months on the job, according to W. F. Cascio, Managing Human Resources (2003).

That is where onboarding comes in. According to Dr. John Sullivan, research indicates that improving your onboarding program may increase retention rates by as much as 25%.

Corning, Inc., the manufacturing firm, had several objectives aimed at improving productivity. It sought to reduce voluntary turnover in the first three years of employment and to shorten the learning curve of new employees by 17%. The onboarding program was also designed to foster an understanding about the company and to build a positive attitude toward the company. As it turned out, new employee turnover was reduced by 69% after two years. (W.F. Cascio, Managing Human Resources.)

Onboarding is an important tool in the recruitment and retention process and should be a regular function of a supervisor's or manager's job. Some of the key purposes of onboarding follow.

• Reduce Startup Costs — Proper orientation can help the employee get "up to speed" much more quickly, thereby reducing the costs associated with learning the job.
• Reduce Anxiety — Employees, when faced with new or strange situations, will experience anxiety that can impede their ability to learn or function well in their jobs. Onboarding helps reduce the anxiety that results from entering into an unknown situation and helps provide guidelines for behavior and conduct, so that the new employee does not have to experience the stress of guessing how things are done in the new culture. No matter how much work experience a new employee has, knowing the technical and social aspects specific to the job and the organization is essential to function in a new environment.
• Reduce Employee Turnover — Employee turnover increases as employees feel they are not valued or are put in situations where they cannot possibly do their jobs. Onboarding shows that the organization is committed to and values the employee and is dedicated to providing the employee the resources necessary for succeeding in the job. Retaining your new hires will also save dollars.
• Save Time for the Supervisor — Onboarding involves a team of players. Of course, the employee's supervisor plays a key role in the process, and the more additional resources put into onboarding, the less time supervisors will have to spend teaching the employee.
• Heighten Engagement — Employees who feel that they are valued and that the organization is committed to them and their growth are more committed to their jobs and their organizations.
• Develop Realistic Job Expectations, Positive Attitudes and Job Satisfaction — In addition to learning about the values and attitudes of the organization, employees should learn as soon as possible what is expected of them and what to expect from others. While employees will learn from experience, they may make unnecessary mistakes that are potentially damaging.

According to the Corporate Leadership Council (CLC), effective onboarding improves employee engagement and that drives discretionary effort. The Council describes discretionary effort as "an employee's willingness to go above and beyond the call of duty, such as helping others with heavy workloads, volunteering for additional duties and looking for ways to perform their jobs more effectively."

The following aspects of onboarding promote employee engagement and drive discretionary effort.

Onboarding Activity	Change in Discretionary Effort
Clearly explaining job importance	23.4%
Teaching about organizational vision and strategy	21.9%
Teaching about group or division	21.5%
Clearly explaining performance objectives	20.9%
Clearly explaining job responsibilities	20.3%
Introducing new hires to other new employees	19.2%
Providing work immediately	18.8%
Providing necessary tools and resources	17.9%

(Corporate Leadership Council, 2004)

In today's competitive marketplace, the ability of your organization to fully engage new employees, bring them up-to-speed quickly and keep them in the organization long-term are significant competitive advantages. A well-developed onboarding program can reduce turnover and save an organization thousands of dollars. Though the onboarding process takes energy, time and commitment, it pays off for the individual employee, the department and the organization.