Companies lose £2bn with poor induction strategies

UK businesses are losing up to £2bn a year in employee productivity due to inefficient staff induction processes, according to new research.

Based on average earnings in companies with just one new starter every year, the slow and often unorganised approach to induction is leading to at least a week of “dead time” when employees join an organisation, said training firm Thomson NETg.

The problem could be lessened by intruducing a pre-induction checklist for HR managers and basic training for the new recruit before their first day at work, said Mike Summers, director at Thomson NETg.

“A simple checklist for the new starter, outlining things from corporate procedures and passwords to where to find car park passes, would get them working straight away, saving UK companies at least £2bn a year,” he said.

A recent report from the Chartered Institute of Personnel Development revealed that 13% of leavers had less than six months service with their company. Induction plays a large part in not only how well a new employee integrates into corporate culture, but also how long they stay, the CIPD said.

“In a climate where specific skills are becoming increasingly hard to find, it makes far more sense to get the induction right the first time, every time,” said Summers. “The problems caused by a poor induction strategy can reach much further than loss of productivity.

“In extreme cases, a member of staff that doesn’t feel engaged with the business will end up leaving, through resignation or dismissal. This can cost companies much, much more in further recruitment and training.”


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