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Enterprises underperforming in employee onboarding, study says

April 30, 2018

Employees who have negative new-hire onboarding experiences are twice as likely to look for new opportunities in the near future, according to the Employee Engagement study released today by Digitate, a software unit of Tata Consultancy Services.

Most new hires are dissatisfied with the onboarding process, and after the new hire onboarding experience, one in five new hires are unlikely to recommend the employer to a friend or family member.

The research also found one in five new hires are confused about how to proceed during the employee onboarding process. Half of the study participants said IT resolution is too slow and 40% feel getting a response to HR questions takes too long; 59% employees think automation may benefit their company.

“Given enterprises invest significant resources in HR technology software and typically spend an upwards of one-third of an employee’s first-year salary to retain the best talent, our survey shows enterprises are underperforming in employee onboarding and not maximizing returns from their investments,” said Victor Thu, head of product marketing at Digitate. “Enterprises have an opportunity to improve their new hire onboarding processes and deliver tangible value by using AI and automation.”

Digitate is headquartered in Santa Clara, Calif., and Pune, India. Approximately 1,500 employees across numerous industries and functions participated in the study, which was conducted by research technology company Research Now.