Papers to sign, more papers, policies, rules, and an HR assistant rapid-fire reading PowerPoint slides before hastily dismissing new employees to their work areas, where computers and phones are "not quite ready, and the new manager cannot be found. Sounds familiar? The new employee's first day experience is a nightmare, and she goes home at the end of a frustrating day questioning her decision to take the job, the company's commitment to employees, her manager's credibility and whether or not to show up for Day Two. One in 25 employees leaves a job after a disastrous first day. At a minimum where are the business cards, all the equipment and supplies needed to get to work, and a "welcome lunch with new colleagues? Where is the inspiration that assures new employees they have made the right company and job choice?
Whatever name given to the process - onboarding, orientation, transition, assimilation, integrationeverything matters to ensure new employees are successfully aligned with their new jobs, the company culture, their new teams and, most importantly, their new managers. Employee engagement starts well before Day One, and is powerfully impacted by employee perceptions and experiences when they start new jobs. A recent survey of more than 12,000 US employees across all job levels and industry sectors1, found that companies with highly engaged workers spend an average of 35 weeks integrating new employees, compared to only 15 weeks at employers with low engagement indicators.
Companies have discovered the ROI for "onboarding makeovers. At Corning Glass, employees who attended a structured orientation program were 69% more likely to remain with the company after three years than those who did not go through the same program. At Texas Instruments employees who were carefully given orientation reached "full productivity two months earlier than those with a more casual orientation process. Hunter Douglas found that by enhancing their onboarding, turnover was reduced from 70% at six months to 16%. Designer Blinds in Omaha implemented onboarding upgrades which reduced turnover from 200% annually to under 8%, and cut their recruiting budget from $30,000 to $2,000.
With clear evidence that structured, comprehensive, and well-executed onboarding processes impact employee retention, engagement and productivity, what actions can companies take to immediately and with minimal cost upgrade their new employee programs? Alison Caplan, Director of Staffing for CB Richard Ellis, believes that "successful onboarding begins with helpful recruiting staff, managers who go out of their way to personally greet and spend time with new hires, and welcome days which are well-planned, interesting and productive. Commongood Careers, an organization of nonprofit professionals, offers simple, easy to implement suggestions for either Human Resources or hiring managers to ensure a successful first few days:
" Develop an agenda for the first full week on the job. Assign a department employee to greet a new employee and give a site tour.
" Schedule times for new hires to meet with key company employees and alert them to welcome the new hire.
" Give staff members a copy of the new employee's resume, the job description and ask them to describe their own positions and how they see the two interacting in the future.
" Assign a willing and knowledgeable employee coach to be an immediate single source for questions, introductions, resources, company culture, and basics like where to eat, park and get supplies, make copies, etc.
" Set up all supplies, equipment, email and voice mail access, phone directory, and leave the employee handbook on the desk.
" Prepare all forms to be completed on day one. Mitigate the dullness of this task with a plant or flowers on the new hire's desk.
" Give a "gift bag with logo T-shirt, hat, mug and other fun items to create a warm welcome.
" In the afternoon managers should meet with new employees to forecast projects, responsibilities and task for the first 30-60 days. Realistically setting expectations for a new hire's training.
" Balance the activities of the first day with orientation, staff meetings and time to informally get acquainted with the new team over lunch.
Beyond the first day ensure that new employees meet staff members outside the employee's team, especially "clients of the new hire's work, and as appropriate ensure meetings with partners, founders, board members and other key stakeholders in the new hire's success.
A structured onboarding program proactively solicits feedback from new hires to further ensure their success. The Eastridge Group of Staffing Companies, whose corporate office is in San Diego has implemented a personal, direct and effective way of gathering data about new employee experiences. Senior management noted signs of employee dissatisfaction and some undesired turnover particularly among service staff early in their tenure. The organization contracted with a trusted human resources consultant to speak with all new hires by telephone at 30, 60, 90, 120 and 360 day intervals, inquiring about satisfaction with their training, communication with managers and co-workers, resources to do their jobs, benefits and compensation. Early warning signs of problems are communicated to managers and at times, their managers, so that they can take remedial action to fully engage or re-engage a valued employee.
Kevin Sheridan, CEO of HR Solutions, Inc, a human capital management consulting firm, comments on onboarding programs. "It is a well known fact that getting new employees engaged out of the gate is critical to the new hire's success and the organization's. Comprehensive and well thought out onboarding programs which achieve this goal allow organizations to stay ahead of the curve and definitely set themselves apart from their competition as they seek to recruit and retain high performers.
A recent survey by an international executive search firm revealed only 30% of global executives surveyed were satisfied with their employers onboarding process for new hires. Studies suggest that 40% to 45% of senior executives leave their positions within 18 months of their start dates, costing companies in recruiter's fees, lost business opportunities, and replacement costs, between 150% and 250% of annual salary. Bristol-Myers began an ambitious, laser like focus on the first 30 to 60 days of executive employment, clarifying roles, setting up meetings with stakeholders, reinforcing cultural norms and holding follow-up meetings throughout the first year to check progress and resolve integration problems. One organization assigns a leadership development coach to work with the hiring and new executive to identify key success factors, create an action plan around these factors and communicate regularly with the new hire, providing developmental feedback to guide his or her success.
1. Source: Watson Wyatt's 2006/2007 WorkUSA