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An effective on-boarding program can save your organization thousands of dollars!

In demanding economic times, it is crucial for corporate America to foster an employee-friendly and committed work environment. This friendly and committed work place should provide the organization with a reduced employee turnover rate. This reduction in turnover will reduce operating costs in such areas as new employee recruitment, training and development, and the costs related to unfilled positions, just to mention a few.

Some forecasts estimate the cost of employee turnover to be as high as "150% of the employee's annual compensation" (Bliss, 2008). This percentage can easily be reached (and even surpassed) when the costs associated with loss of productivity are considered. Take, for example, an employee with an annual salary of $40,000 dollars. Costs for recruiting efforts for this position could run as high as $5,000 dollars. Add to this, the cost for the time the position is not filled (cost due to lost of productivity); the cost due to loss of knowledge and skills, and last, the cost associated with training the new employee, and this could easily surpass $60,000 thousand dollars.

The question now becomes, what can an organization do to reduce employee turnover and save thousands of dollars? Many things can be done, but one of the most effective things to deal with employee turnover is to establish a program that develops and mentors new employees. "Without this continuous learning, people cannot function in an evolving culture of empowerment" (Blanchard, 2007, p. 81). In this article the author offers six reasons why organizations should invest in an effective on-boarding program, and thus reduce employee turnover.

Reason number 1: Provide the new hire with the necessary tools to adapt quickly.

When should an organization worry about training their employees? Certainly not when the employee is about to leave or walk out the door! The most appropriate and effective time to initiate training is at the time of hire. That is when a solid foundation needs to be established, providing the new hire with the necessary tools to quickly adapt to, and continue to thrive in, his or her new environment.

The goal is to provide the new hire with the necessary knowledge as outlined in the on-boarding program, and empower him or her to become a productive team member. Remember, "Investing in people doesn't require significant additional financial resources. It requires being

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