A significant portion of employee turnover occurs within the first year of employment, often linked to a lacklustre onboarding experience.

Studies by Australia’s Department of Employment and Workplace Relations found that up to 20% of employee turnover occurs within the first one and a half months of the staff.

Worse, replacing just one departing employee can cost upwards of 50% of their annual salary, which can become a major headache for companies on a tight budget.

However, a well-designed onboarding process has the power to transform these statistics, boosting new hire retention and fostering long-term employee loyalty.

This investment is especially critical in today's tight Australian labour market, where attracting and keeping top talent is more challenging than ever.

Why onboarding is key to retention in a tight labour market

The competitive labour market today provides Australian job seekers more options than ever before.

This means that a positive new-hire experience carries even greater weight in attracting and securing top talent.

A poorly structured onboarding process can lead to disengagement and early turnover, costing your organisation valuable resources and disrupting productivity.

Conversely, a carefully crafted onboarding programme demonstrates to new employees that they are valued investments.

When new hires feel welcomed and supported from day one, they're far more likely to become long-term, dedicated members of your team.

As Reid Hoffman, co-founder and executive chairman of LinkedIn, once said: “Pay attention to your culture and your hires from the very beginning.”

Investing in onboarding strengthens retention, ultimately saving time and resources on recruitment efforts down the line.

READ MORE | The importance of a well-designed employee orientation process

Build a sense of belonging from the start

Fostering a sense of belonging is a cornerstone of a successful onboarding process. Here's how to make new hires feel welcome and integrated into your company culture:

1. Warm welcome

Offer personalised introductions to team members and key stakeholders. A welcome package with company information and maybe some fun branded items adds a thoughtful touch. Consider assigning a designated "buddy" for the new hire's first few weeks to provide support and guidance.

2. Accessible resources

Provide a comprehensive onboarding guide that outlines policies, procedures, and expectations. Include a directory of contacts and available support channels to ensure new hires know where to turn for help.

3. Defined role and purpose

Clearly outline the new hire's responsibilities and demonstrate how they impact overall team goals. Connect their individual work to the company's broader mission and values, helping them understand how their role contributes to the bigger picture.

READ MORE | 7 ways AI can help you onboard new staff effectively

Mentorship: A key factor in new hire success

Mentorship programmes create a powerful support system for new employees, fostering a sense of connection and guidance within the company.

A mentor can help a new hire quickly navigate company dynamics, understand unspoken cultural norms, and build valuable relationships.

This type of support is particularly important in the early stages of employment when new hires may feel overwhelmed or unsure of whom to turn to with questions.

There are various approaches to mentorship. Some programmes are highly structured, with formal pairings and designated meeting times.

Others take a more organic approach, encouraging new hires to connect with more experienced colleagues who share similar interests or goals.

Regardless of the format, providing a mentorship opportunity signals to new hires that their development is a priority, boosting their confidence and commitment to the organisation.

Creating clear paths for growth

Demonstrating opportunities for career progression is a powerful retention tool, especially for ambitious new hires.

By starting conversations about growth early in the onboarding process, you show a commitment to employee development.

This proactive approach builds trust and loyalty, making it more likely that new hires will envision a long-term future within your organisation.

Here are ways to highlight growth opportunities:

1. Career path discussions

Meet with new hires to understand their aspirations. Map out potential trajectories within the company, even if they are several steps down the line.

2. Skills development

Offer training programmes, workshops, or online resources that help employees expand their skillset and prepare for future roles.

3. Promotional pathways

Clearly outline the steps or requirements for promotions, demonstrating a transparent path for advancement within the company.

Investing in a robust employee onboarding experience isn't an optional perk – it's a strategic decision with direct implications for your company's long-term success.

In Australia's competitive labour market, attracting top talent is only half the battle. In prioritising a sense of belonging, offering mentorship opportunities, and showcasing clear growth potential, you transform the new-hire experience into a foundation for lasting retention.

The time and resources invested in onboarding will pay dividends in the form of a dedicated, passionate workforce committed to growing alongside your organisation.