Poor employee induction costs UK plc 2 billion

Learning solutions provider Thomson NETg has discovered that UK businesses are losing up to 2 billion in employee productivity due to inefficient staff induction processes.

Based on average earnings in companies with just one new starter every year(1), the slow and often unorganised approach to induction is leading to at least a week of ëdead timeí when employees join an organisation.

The problem, according to Thomson NETg, could be reduced with the introduction of a pre-induction checklist for HR managers and basic training for the new recruit before their first day at work.

ìA 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 2 billion a year,î said Mike Summers, director at Thomson NETg. ìHaving a customised online learning process including all induction information means a new member of staff can join the company hitting the ground running and happy from day one.î

This news follows a recent survey from the Association of Graduate Recruiters show that many graduate recruits wonít bring the right skills to their first job(2).

Additionally, recent figures from the Chartered Institute of Personnel Development(3) revealed that 13 per cent of leavers had less than six months service with their company. Induction, says the results of the report, plays a large part in not only how well a new employee integrates into corporate culture but also how long they stay.

ìIn 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,î added Summers. ìThe problems caused by a poor induction strategy can reach much further than loss of productivity. In extreme cases, a member of staff that doesnít 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.î