Making the Business Case for Virtual Onboarding

Tom MasottoVice President & GMVirtual Environmentstom.masotto@on24.com

• Top 3 Best Practices for Virtual Onboarding

• Virtual Onboarding ROI Calculator – Case Study

• Questions & Answers

Agenda

• Employees with formal onboarding training are 54% more productive

• Organizations with a standard onboarding process experience 50% greater new hire retention

• Manager satisfaction increases by 20% when their employees have formal onboarding training

• Automating onboarding tasks results in 18% greater achievement of employee’s performance goals

The Onboarding Opportunity

* Source: The Onboarding Statistics You Need to Know 3

• The traditional classroom-and-paperwork approach to onboarding doesn’t cut it with Millennials

• Millennials have grown up using technology, and most are used to more interactive forms of learning

• Ability to showcase technology during the recruitment process plays a key role in holding Millennial candidates' attention

• Millennials – 34% of the US workforce – are driving many of today’s business technology decisions

Millennials Driving Virtual Onboarding

* Ages 18 to 34 in 2015 4

• Delivers more intuitive & consistent onboarding by providing a one-stop shop for orientation webinars, HR programs & benefits, task lists, self-paced training, and other resources

• Delivers the engaging & highly interactive training requested by your employees, particularly Millennials

• Allows companies to lengthen their onboarding programs accelerating time-to-productivity and better preparing new employees for success

• Improves new hires’ assimilation by more effectively integrating them socially and culturally

• Reduces the cost of new hire onboarding by up to 90%

Virtual Onboarding Benefits

Best Practices for Virtual Onboarding

Top 3 Best Practices for Virtual Onboarding

1 Use virtual environments to centralize onboarding training

2 Deliver interactive “consumer-like” virtual experiences

3 Teach your new hires by playing games

Challenge: Multiple Training Repositories

Corporate LMS

Shared Drives

SharePoint & Intranet

3rd Party Databases

CMS Platforms

KM Systems

Centralize for more accessible and intuitive process

Corporate LMS

Websites & Blogs

SharePoint

3rd Party Databases

Social Media

CMS Platforms

Content Sources

Virtual Onboarding Environment

Engaging “single point of access” to orientation webinars, self-paced training, peer collaboration, networking, job aids, and other new hire-related materials.

What is a Virtual Onboarding Environment?

Virtual Environments Complement LMS Platforms

Administration & Reporting

Corporate LearningManagement System

Training ContentLMS-Based Courses & Assessments

User Authentication(SAML / SSO)

User Experience

Virtual OnboardingEnvironment

LMS deep links

Virtual Environments: Engaging & Interactive Experiences

• Engaging virtual locations (2D/3D)

• Configurable design & navigation

• Documents, webinars, videos, links …

• 50+ networking & interactive features

• Gamification & leaderboards

• Multilingual support

• Self-service administration & reporting

• Consumer technology has spoiled business users

• Business learners now expect the same kind of experiences at work that they enjoy at home

• Consumer-style expectations include:

– Sleek design

– Self-service delivery

– Networked & collaborative

– Anytime / anywhere

Challenge: Consumer Expectations

LMS interfaces are not designed for consumers

* Source: Waters Case Study

Four of the Top 12 LMS complaints relate to “Usability”

“The linear nature of the LMS platform was not engaging enough, and even if a salesperson knew the

course he/she wanted to take, it took several clicks to connect to the

specific learning modules”*

Sleek Design: Intuitive / Familiar Experiences

Self Service: No Instructions Required

Blended: Live & On-Demand Content

Networked: Internal & External Social Media

Collaborative: Forums & Brainstorming

Interoperable: LMS, Blogs & More

Accessible: Anytime, Anywhere, Any Device

* Source: Talent LMS – Gamification Survey Results

• Training programs using gamification improves user engagement by 60%*

• Gamification enhances employee productivity by 43%*

• Gamification provides clear training objectives and recognizes learners’ achievements

• By making learning seem more like fun, the level of knowledge retention is increased

The Value of Gamification

Associate points with learning activities

Motivate using giveaways or competitions

Engage learners with game boards

Use scavenger hunts to deliver guided training

Virtual Onboarding ROI Calculator – Case Study

• Delivers more intuitive & consistent onboarding by providing a one-stop shop for orientation webinars, HR programs & benefits, task lists, self-paced training, and other resources

• Delivers the engaging & highly interactive training requested by your employees, particularly Millennials

• Allows companies to lengthen their onboarding programs accelerating time-to-productivity and better preparing new employees for success

• Improves new hires’ assimilation by more effectively integrating them socially and culturally

• Dramatically reduce the cost of new hire onboarding

Virtual Onboarding Benefits

Virtual Onboarding: ROI Case Study

75 New Hires / Year Annual Cost Savings

Reduced onboarding costs ?

Increased new hire retention ?

Faster new hire time-to-proficiency ?

Total Savings

Compared to in-person training, virtual onboarding can reduce costs by up to 90%. The training costs that can be eliminated (or reduced) include:

• Airfare

• Hotel

• Meals

• Transportation

“Onboarding Costs” Analysis

Number of new hires per year 75

Length of onsite onboarding 5 Days

Average travel time 1 Day

Analysis Criteria / Assumptions

“Reduced travel” cost savings is $183,750 per year

Number of New Hires 75

Number of Days 5

Number of Days (including travel & weekends) 6

Airfare per person $800

Total $60,000

Daily Costs / Person

Hotel $200

Meals $50

Transportation $25

Total Daily Costs / Person $275

Total Daily Costs $20,625

Hospitality & Per Diem Costs $123,750

Total Cost Savings $183,750

Per Trip Costs

Reduced onboarding costs $183,750

Increased new hire retention ?

Total Savings

• An effective virtual onboarding program can decrease new hire turnover3

• This analysis focuses on cost savings for first-year retention.

• The survey results / statistics used in the calculation:

– Cost of employee turnover is 20% of annual salary1

– 71% of new hires stay for one year or less2

– Effective onboarding can increase employee retention by 25%3

“New Hire Retention” Cost Analysis

#1 - Smal l Bus iness Employee Benefits and HR Blog, "Employee Retention - The Real Cost of Los ing an Employee" February 2016.

#2 – New Survey Results : Recent Grads Leave Fi rs t Jobs Quickly, February 2016.

#3 - Give Your Cl ients A Competi tive Edge with Effective Employee Onboarding, Jan 2016

New hire’s hourly cost $30

Cost of turnover (% of annual salary) 20%

First-year new hire turnover 71%

Effective onboarding retention improvement 25%

“Retention-related” cost savings is $159,750 per year

#1 - Smal l Bus iness Employee Benefits and HR Blog, "Employee Retention - The Real Cost of Los ing an Employee" February 2016.

#2 – New Survey Results : Recent Grads Leave Fi rs t Jobs Quickly, February 2016.

#3 - Give Your Cl ients A Competi tive Edge with Effective Employee Onboarding, Jan 2016

Hourly Cost / Person $30

Annual Cost / Person $60,000

Replacement Cost Percentage1

Replacement Cost / Employee $12,000

% First-Year Employee Turnover2 71%

Total Cost of First-Year Turnover $639,000

% Retention Improvement from Effective Onboarding3

Cost Savings from Improved Retention $159,750

Increased new hire retention $159,750

Total Savings

• An effective virtual onboarding program can decrease the time required for a new hire to reach full productivity

– It typically takes 8 months for a new hire to reach full proficiency1

– New hires in longer onboarding programs gained full proficiency 34% faster2

• The analysis focuses on the cost savings associated with new hires reaching full productivity sooner

• The analysis assumes new hires are, on average, 75% productive near the end of the onboarding process and 100% when at full proficiency

“Time-to-Proficiency” Cost Analysis

[1] Technology Can Save Onboarding from Itself, March 2015.

[2] What Every Leader Should Know About Onboarding, March 2013.

New hire’s hourly cost $30

Typical time to full proficiency 8 months

Accelerated time to proficiency 34%

Difference between ramping & full proficiency 25%

Average # of work days per month 20.7

“Time to proficiency” cost savings is $245,657 per year

Hourly Cost / Person $30

Daily Cost / Person $240

Monthly Cost / Person $4,817

Time to full proficiency (months)1 8

Cost to Full Proficiency / Person $38,534

Total Cost $2,890,080

Accelerated time to proficiency2

Difference between ramping new hire & full productivity 25%

Time to Proficiency Acceleration (months) 2.7

Cost Savings Due to Acceleration $245,657

[1] Technology Can Save Onboarding from Itself, March 2015.

[2] What Every Leader Should Know About Onboarding, March 2013.

Increased new hire retention $159,750

Faster new hire time-to-proficiency $245,657

Total Savings $589,157

“We hire 32 new employees each week.

Our onboarding process is informal,

impersonal, and inconsistent. It is also

heavily reliant on the hiring manager. The

lack of an onboarding program is affecting

time-to-productivity and retention.”

HR Training & Development Director

“Lack of onboarding is affecting our productivity”

KEY CHALLENGES

+ Onboarding over 1,650 new employees each year

+ Provide an interactive, engaging experience designed for millennials

+ Significantly improve retention and productivity longer term

$5BFinancialServices

SOLUTION COMPONENTS

+ ON24 Virtual Onboarding Center

+ Pre-boarding, orientation and onboarding modules

+ SAML integration for secure user authentication

“With ON24, we can provide a consistent

and engaging onboarding experience for

global new hires, which will accelerate new

hires’ time-to-productivity and

social/cultural assimilation. Without ON24,

our new hire onboarding would cost us

over $4 million per year.”

Improves job excitement & productivity / saves $4M

$5BFinancialServices

Question & Answer

Tom MasottoVice President & GMVirtual Environmentstom.masotto@on24.com

Making the Business Case for Virtual Onboarding · Making the Business Case for Virtual Onboarding...

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