the business case for onboarding

Recruitment is not easy — finding the right candidate in the face of strong competition is a challenge and can be expensive (see chapter 4). Ensuring both you and your new team member feel you have made the right decision can save enormous amounts of energy, disruption and cost.

the cost of early leavers

High levels of turnover among new recruits means you will barely have recovered your recruitment and training costs before it’s necessary to restart the recruitment process. It’s difficult to put a figure on the exact cost of replacing an employee, but Randstad estimates this could be anything from 50% to 150% of an individual’s salary depending on the acquisition cost, seniority, skill level and the impact of loss to both staff and customers.

Explanations of high turnover rates include:

  • the job failed to match up to expectations
  • poor selection – the successful candidate did not complete the probationary period successfully
  • the organisation failed to integrate the newcomer successfully — this includes a poor or non-existent induction process and difficulties integrating the newcomer with the existing team
  • failure to connect with the line manager
  • some industries, such as hotel, catering and leisure and retail have naturally higher turnover levels as they often employ younger people e.g. students who aim to move on

The message is clear: spending time and effort on your onboarding processes is good for you, good for your employees and good for the business.


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