How critical is software onboarding at your enterprise? The answer will shock you
Many new entrepreneurs buy software believing that it will be plug and play. However, software onboarding is a complex process and something that takes a long time, especially when you factor in things like the need to train multiple employees. Unfortunately, a lot of SAAS platforms also have poor onboarding processes. While they might provide a minimum level of support, they really give you the assistance you need to implement effective solutions in your enterprise at scale.
In this post, we look at some of the facts around the criticality of software onboarding in enterprises. We think the answers you’ll see here will shock you.
Only a small minority of organisations are fully prepared post-onboarding
One of the most shocking facts about software implementation is that only a small minority of organizations are really prepared for what comes next after onboarding.
Usually, this is because the onboarding process itself is insufficient or ineffective in training how to use software. The other reason has to do with the complexity of the software and the long learning curve. Sometimes, it’s not possible to include all of the required education in a standalone onboarding process.
HR professionals often need in-house experts that can continue to train staff and employees on proper utilization. The upside, of course, of making this additional investment is that it makes employees more satisfied and committed. They are much more likely to want to take part in using new systems and solutions, reducing spotty coverage.
Good onboarding boosts retention by over 50%
Another critical fact about software onboarding is that when it’s done correctly, it can increase retention by more than 50%.
A lot of organisations start with high usage during the initial stages of a software implementation. However, over time, staff fall off the bandwagon and eventually go back to old processes and workflows which aren’t in the best interest of the company as a whole.
Meanwhile, those who do have effective guidance can increase conversions on the consumer side while also demanding that their employers renew. This is a great situation to be in because not only do you have staff who are excited about the software technology, but also generating real results for owners and other stakeholders.
Software abandonment is endemic in enterprise settings
Software abandonment is endemic in some enterprise settings. Estimates suggest that it could be as high as 75% within the first week, with more than 55% of companies stopping using apps that they don’t understand quickly. This is not because the software solutions themselves are bad; it’s just that enterprises aren’t always sure how to drive the maximum value from them.
This is where HubSpot consultancies are useful. A leader in this space called Incremental explains the value of software onboarding. It knows that poor customer onboarding is one of the top three reasons for SaaS churn. If onboarding isn’t of a high quality, it can kill retention at these brands and also disqualify client companies from benefiting from the services that they offer.
This is particularly important when it comes to high-return software solutions like CRMs. When the upside is potentially enormous, the cost of missing out is significantly higher.
The global software onboarding market is growing
Unsplash – CC0 License
Related to this last point, the global employee onboarding software market is growing. Currently, estimates suggest that it’s worth around $1.7B-$1.9B for companies across the globe. Market growth rates are in excess of 9%-10% with many HR departments saying that it’s necessary to get the most from their teams.
It’s an obvious play when companies attempt to bring onboarding expertise in-house, it can be expensive. When they outsource it to affordable solutions, it brings the price down considerably while also enabling greater return on investment in software. Enterprises also know from bitter experience that leveraging software properly is a time-consuming and challenging process. It’s only with effective onboarding that it’s possible to really get the most from it.
New hires reach their productivity potential faster
With effective onboarding, it’s also possible for new hires to reach their productivity potential faster. Some estimates suggest that the improvement could be as much as 50% when employees have to struggle with software alone. The learning curve is steeper and more challenging to climb, but with onboarding assistance, it becomes shallower and easier, enabling them to dedicate less time to education and more to doing actual productive work.
Some software companies try to get around full onboarding processes by providing stock tools, such as wizards or instructions, which are useful for standardized protocols, but they may not be sufficient for businesses that need to implement complex and flexible processes.
Employees with better onboarding stay longer
Another fact is that employees with better onboarding tend to stay longer—many at least three years. When companies have strong processes, new hires feel valued and encouraged to stay. They also feel like they are gaining valuable new skills that they’ll be able to transfer to other employers at a future date, just in case. If onboarding isn’t good, new hires often quit within the first six months. They’re less incentivized to stay because they haven’t been supported, plus because they can’t use the tools properly, their jobs are less enjoyable.
Evidence suggests that effective onboarding can improve new hire retention by up to 4/5. Early turnover is a primary risk at many companies. If employees don’t stay a year, then they can’t cover the costs of hiring them, leading to losses overall. Proper onboarding is a method for reducing the risk that this happens. If you can keep people at your firm, then it will ultimately perform better.
So, having read this guide, you should have a better understanding of why software and boarding is so critical in today’s economy. It’s not just about improving productivity at your firm, but it’s also about ensuring that staff want to stay working for you long-term. Once you understand the facts, you’re in a better position to act and succeed.
