What is employee onboarding?

Employee onboarding is the process of introducing and orienting the new employees with your company’s work culture and processes. It can do wonders to your employee retention numbers if done right. 

Some organisations conclude it within a day, and others may stretch it up to 18 months. But mostly, it begins when you send potential employees, offer letters. 

A good onboarding process involves

  • Introducing the new employee to the company’s culture, policies, and workspace
  • Equipping the candidate with necessary employee self-service tools and telling them about their responsibilities and role in the company
  • Logging the employee on the company roster and signing up for company benefits
  • Adding the employee to the payroll system

Why does employee onboarding matter?

Employee onboarding is the first time an employee interacts with the company post-interview. It is crucial to have a good onboarding experience as it increases employee engagement and helps in retention.

The initial experience will impact their job performance in the future and affect employee longevity. As per the Society for Human Resource Management (SHRM), nearly 70% of employees stay with the company for three years if their onboarding experience is excellent.

A bad experience, on the other hand, affects their perception of the company. If they don’t get the information and enthusiasm they deserve, it creates a negative impression. Remember, how first impressions are the last?

As per a report, 1 in 25 employees quit new jobs because of a lousy onboarding experience. 

Employee onboarding process steps

A good employee onboarding process helps employees settle down, obtain clarity on their job responsibilities and forge good relations with colleagues.

The employee onboarding process involves:

  1. Releasing the offer letter: The onboarding process begins after a shortlisted candidate gets selected. The company presents an offer letter along with onboarding forms and other paperwork. There should be-
  • Clear and transparent approach with the employee to gain their trust.
  • The offer letter must have a clear job description, profile, and salary offer.
  • Phone calls and follow-ups to stay connected with the candidate.
  1. Offer acceptance: After presenting the offer letter, the next step involves acceptance of the offer letter by the candidate. Here, the company needs to schedule a phone call to review the policies, benefits, and other terms that the employee agreed upon. Active response helps in forging strong relations with a new hire. The company needs to prepare-
  • Forms and policies
  • Employee agreement
  • Employee handbook including code of conduct, health and safety policy, attendance and leave policy
  • Non-disclosure agreement
  1. Waiting period: Generally, there is a time gap between the candidate accepting the offer and the joining date. During this waiting period, employees might be open to offers from other companies. It is crucial to effectively plan the waiting period to build a good relationship with potential employees. 
  2. Joining date: On their first day, a new hire is excited, happy, and nervous. The company needs to make them comfortable by giving them a sense of belonging. For this, the company can-
  • Send a welcome email.
  • Introduce them to the team
  • Schedule time for paperwork and documentation
  • Meeting with HR
  • Make an orientation schedule.
  • Set up salary account 
  • Give the new hire all the necessities like setting up accounts, company email, software, office phone, laptop or desktop, and parking facilities.

Note: With RazorpayX Payroll, you can transfer employee salaries to any bank account. So, you don’t even require opening a new company salary account. 

  1. Orientation and coordination with other departments: It is mandatory to introduce the new hire to departments they will be working and coordinating with. Schedule an orientation meeting, including all the departments.

To help the hire assimilate new work culture, introduce them to your company’s goal and relevant information. Enable the manager to set simple and realistic goals that can be achieved within a month or three months.

Proper orientation or training can speed up the process and help them understand your company’s policies and team processes. Assessment of skills and developing a role-specific training program will help enhance their skill set.

The first few weeks of the employee onboarding process are crucial and most influential on new employees’ outlook about the company. It sets the tone of a long-term relationship. Find out what they are comfortable with, and make changes if possible. Do regular check-ins and

  • Ask them about their experience
  • Review their performance
  • Talk about career progression
  • Ask about any issues
  • Know if they need any additional training

Successful onboarding processes require time and effort. The process should leave the employee understanding the company’s mission, culture, values, and people.

How automation with RazorpayX Payroll helps

Employee onboarding is a cumbersome process with a lot of paperwork. RazorpayX Payroll is an HR & payroll software that automates manual tasks and makes the HR processes effortless.

It can help to

  • Upload documents like PAN, Aadhaar card, etc., online with just a few clicks
  • Make important announcements related to the latest information
  • Calculate and disburse salary into employee bank accounts in just 3 clicks, under 10 minutes 
  • Choose from in-built templates of offer letter, appointment letter, and more
  • Reduce the workload of the HR team
  • Provide transparency to the process
  • Ensure payroll compliance like TDS, PF, PT, and makes a single source for employee information
  • Leave and attendance management
  • Check employee progress in the onboarding process
  • Generate reports

RazorpayX Payroll takes care of mundane HR workload and provides a smooth employee onboarding experience.

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Alish is a writer at RazorpayX. Zoophilist. Coffee Addict. And now a FinTech enthusiast. When not writing you'll find her learning French, taking a long walk (or run) with her dog, or Netflixing.

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