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7 Ways Inductions Are Costing You Time And Money

According to statistics gathered by the London Coaching Company, 80% of company leaders offer a sub-standard induction, leading to 1 in 5 new employees leaving a business within the first 6 months.

Staff turnover is a massive cost to businesses, but there are other ways that substandard inductions could be costing you money. Let’s have a look at 7 of the most common business headaches resulting from induction mistakes.

1. High staff turnover

According to HR Review, the average cost of replacing a member of staff is over £30,000. You might think you can do it more cheaply, but when you factor in the cost of advertising for new employees, agency costs, interview costs, man-hours spent on the hiring process, training, HR administration, lower productivity from new staff to name a few – it’s easy to see how the money mounts up.

So what part does the induction process play in high staff turnover?

A good induction includes a number of elements that help in staff retention. These can help to:

  • Empower employees
  • Build a sense of pride and belonging
  • Create and manage expectations

2. Your staff feel undervalued and disconnected from your aims

As mentioned above, helping staff to feel a sense of empowerment within the workplace is crucial to their attitude to the organisation that they work with. It helps to build a sense of loyalty and a lasting ‘buy-in’ with the business they work for.

However, staff empowerment goes much further than that. Recent HR processes by Wigan Council have shown that by empowering staff, they’re able to give a better customer experience. This can really make a difference to the overall success of your business.

Good customer experience builds repeat business and new referrals, not to mention wider PR and marketing opportunities.

Building empowerment creates a sense of pride and a real feeling of belonging to an organisation, and this starts with induction.

A successful induction isn’t just a rulebook of what your company expects from employees. It’s also the first place to deliver the essential messages as to how you will support staff in achieving the aims of the organisation for the benefit of employers and employees alike.

3. You’re slow to adopt newer technologies

More and more businesses are now choosing to use digital technology for the induction process but some are still going for the traditional approach, getting everyone together at a hotel or conference venue, where they’ll be subjected to presentations and workshops.

The cost savings of using digital induction methods are massive as you’ll cut the cost of:

  • travel
  • room hire
  • refreshments
  • man hours lost (by new employees and induction staff)

The above costs might make sense if the return on investment paid off, but online induction programs, such as are shown to be more effective, as well as cutting costs.

4. New employees take time to get up to speed with the business

It makes financial sense for all new employees to have undergone the induction process before they start working with you.

Carrying out inductions in advance ensures that:

  • Employees are up to speed with what’s required from them on day one: employees and contractors can get to work immediately.
  • They know how to get help and where to refer for guidance.
  • They won’t make costly mistakes during the early part of their learning curve.

For those of you still determined to stick with non-digital induction programs, this can be nigh on impossible to implement. But if you make your inductions online, it’s easy to do and another way in which digital inductions save you money.

5. Keeping it legal

Carrying out inductions prior to new employees starting is a two-way process and it’s not just the new staff who benefit from the information being given.
It’s also the ideal place for managers to gather information on qualifications and certification held by new staff.

With an online system, new staff can upload their certification and qualifications before they start. Managers have full information on every individual; including dates for when certification needs to be renewed or further training is required.

Qualifications are important indicators of sector knowledge but some certification, especially that relating to Health & Safety, is a legal requirement.

The legal cost to a business of getting an employee’s certification wrong can be massive.

6. Not communicating expectations effectively

According to Real Business, not communicating expectations effectively is one of the key mistakes that’s costing business thousands. The HR professionals at Real Business stress the importance of creating a good induction that makes expectations clear. Not to do so might mean having to correct, or even replace, a staff member later on.

Again, if you have an easily accessible online induction system, you will be able to ensure consistency – everyone is getting the same message and has clear expectations. An online system such as will also include a Q&A section, so that you can test inductees at the end of the process, making sure that everyone understands the information they’ve been given.

When communicating expectations, don’t get caught up the presentation of ‘big ideas’ without relating them to the day to day work that employees have to do. Match vision statements to practical work related specifics.

7. Different staff members need different inductions

Using broad, all-encompassing inductions may seem like a money saver, but they can be a money drainer. Putting all new employees into a room together and making sure that you cover everything for everyone might seem like a cost-effective administrative shortcut, but it could turn into a major money pit.

Sure, there will be certain things that everyone needs to know, such as overall company aims, Health & Safety policy, Equality & Diversity and so forth.

However, the trouble with putting everyone in a room to listen to the bits that don’t apply to them as well as the bits that do, is that it can be confusing. What’s more, the boring bits that don’t apply can make people lose concentration – or even fall asleep – so that they miss the bits that DO apply to them. That missed information might be crucial to their doing things right, for the benefit of the business, or getting it wrong, leaving you to count the cost.

Again, digital inductions can be the answer here, helping you to create individual and role specific induction programmes that are delivered even more cost-effectively than a one-size fits all, delivered traditionally.

Ultimately, your business is about the bottom line. Cost efficiency and cost effectiveness is something that applies to every aspect of your organisation. So have a look at counting the cost of induction mistakes and make sure they don’t happen to you.

How are induction systems impacting on your bottom line? Let us know where you’ve struggled and also tell us about where your best successes have been.