{{item.title}}
Key takeaways
There’s a shift on horizon in how business owners and company executives view the employee experience, and those that are taking action will reap the rewards.
It’s not just a vague HR concept. Think back 10 or 15 years. Experts and business consultants were fighting for the company to put their customers first, and now the growing emphasis on employee experience (and the relationship between increased customer satisfaction, employee retention and business performance) sounds eerily similar to the battle for boardroom conversations back then.
Yet there are many touch points, interactions and relationships that make up an employee’s experience with the potential to result in better engagement – and outcomes – for your business. So which part of the experience should you focus on improving first?
Just like your customer’s experience with your brand, the crucial ‘first impression’ is a logical place to start to look for improvement and evidenced by the success that improving the onboarding experience has on customer satisfaction.1
A growing proportion of employee onboarding involves setting up digital systems and tools that require employees to become ‘proficient users’ in order to perform their role successfully.
Some of the questions that you should be asking about this process:
If any of the answers you gave to the above questions are by you or your customer’s definition unacceptable, there’s a good chance that your employee experience needs attention. Consider it from a customer perspective: if your customer had to spent hours, days or sometimes months to use your product or service, would you still be in business? If not, why is it acceptable for the employee to endure this painful process?
A better employee onboarding experience will lead to happier employees who stay around longer and provide better service to your customers.2 There’s also a strong correlation between happy employees and profit. Companies that sit atop Fortune magazine’s 100 Best Companies to Work For list have on average lower employee turnover rates and higher stock prices.3 In essence, a good onboarding experience delivers a competitive advantage.4
The average person has 12 jobs in their lives, so more of us will experience starting in new workplaces than ever before.5 Just like any other first impression, the employee onboarding experience has become a vital part of employee satisfaction, loyalty, advocacy and retention.
Employee onboarding is more than just welcoming new starters with a handshake and a team lunch. It’s fundamentally about reducing friction in setting up employees for success and enabling them to hit the ground running. There are many touchpoints and potential areas of friction in onboarding employees that can contribute to an individual’s broader perception of the company’s values, culture and how they treat their employees.
Internal systems that run your business should reflect your core values and identity. For example, if a creative business has internal systems that are hard to use and aren’t nice to look at, then how does this affect an employee’s perception of the company? Does your intranet system enable or restrict employees from doing their work? Is it designed with their needs in mind? What level of customisation (if any) is offered?
The digital tools that employees interact with have to align with the company’s values and beliefs around innovation, service design, usability etc.
Businesses need to view new hires as customers of the business – they are looking to validate their ‘purchase’ decision and perception of the company during the crucial onboarding experience. There are metrics that suggest a strong correlation between a successful onboarding experience with employee retention and performance, resulting in considerable savings as the cost of replacing an employee can be between 1.5 – 2 times their annual salary.6
Most employees start a new job because they believe in what the business is about or because their personal vision aligns with the company’s vision. The first day on the job (and arguably, every interaction an employee has with the company) is a ‘moment of truth’ where the employee has their first ‘real’ exposure to the company culture. It’s an important opportunity for the company to reinforce their employer value proposition and brand, to reduce any feelings of post-purchase dissonance in the employee.
The aim for the employees first day should be, when they get home and their partner, family or friends asks how their first day went, that there is no doubt in their mind that they have made the right decision.
Imagine a future where:
The aim should be that the onboarding experience is continuous across the employee’s lifecycle with the company.7
Here are some ideas for creating awesome onboarding experiences:
Get the latest in your inbox weekly. Sign up for the Digital Pulse newsletter.
Sign Up
References
© 2017 - 2024 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Liability limited by a scheme approved under Professional Standards Legislation.