The business case for good employee onboarding is nowhere more glaring than in the sales organization. Companies spend more to hire talent in sales than in any other part of the organization and also experience some of the highest turnover rates (25% to 30% annually1). When a seller leaves, the departure can cost a company between $75K to $300K each year, before considering lost revenue.1 After hiring a replacement, it takes an additional three to six months for a sales rep to become productive.
Benefits of Good Onboarding
Experts agree that a well-executed onboarding program can reduce risk, accelerate the path to productivity, and reduce attrition. CEB research on sales onboarding tells us that engaged employees are 9 times less likely to leave, and effective onboarding programs have the potential to increase employee performance by 15%. Boston Consulting Group’s study, Realizing the Value of People Management, identified onboarding as the second most important capability (after recruiting) amongst 22 HR capabilities that impact revenue growth and profit margins.2