OnBoarding

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Making great first impressions makes great impressions on your bottom line!

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OnBoarding

  1. 1. So…What Does It Mean To Work Here? Bruce Baker January 09
  2. 2. Doing It Right The First Time!
  3. 3. Today’s Agenda A. Economics – Yesterday vs. Today B. The First Impression…A Powerful Strategy C. Creating an Orientation & Integration Strategy
  4. 4. A.
  5. 5. Economic Transition Yesterday Today • Buyers market • Seller‘s market • Revolutionary age • ‗Information‘ age… • Anticipated rate/level of ‗overload‘ age? change • Fast pace • Manageable competition for • Cutthroat competition for product market share Knowledge/skill – Human • Productivity/Employee Capital share retention…an expected • Productivity/Employee norm retention…a critical element of survival!
  6. 6. Traditional HR Mandate…No Complexity! HR’s Mandate Effective Integration 1. Recruit 3. Retain 1. Recruit 2. Develop Integration Integration Effective Effective 3. Retain 2. Develop
  7. 7. Innovative Strategy in Winning the War for Talent Good Start Sustained Success • ―Keep up with Joneses‖ – • No matter how much we The quest to find and retain match trends, focus must be talent…match industry placed on unique trends business/employee qualities/values
  8. 8. So What Is Required? • Stop and realize…the intangibles of the past (i.e. human capital) have now evolved to critical tangibles of the present…human capital. • Do not only focus on how we attract…start to focus on how we retain…relative to our own unique environments If our competitive advantage (Public/Private; Profit/Not for profit) why on average do companies only spend 7% on their orientation programs – 2000 ASTD study • Our overly fast pace environment demands that we innovate in order to survive…our means to survive is to move quickly…but move effectively! • We must leverage employees ASAP – they are able to quickly contribute but are in a position to be retained
  9. 9. Bottom Line… • We have 1 chance to make sure we keep ‗em! • So why do ‗they‘…our critical key advantage…continue to leave early? Drivers of Early Employee Departure • Do not understand company strategy • Lack of affiliation with the organization’s core business • Do not understand their role in the company • Feel that they are/won’t contribute to something useful • Feel like the company does not care about their needs • Perceive a lack of coaching, counseling and support • Do not see opportunities for advancement and higher earnings • Drive the ‗Drivers‘ out with a simplistic but powerful first impression!
  10. 10. B.
  11. 11. Sound familiar? Very complicated notion! (note the sarcasm…) “During the first day on the job, the new employee seeks confirmation that joining the company was the right decision”. Remember…First impressions, after all, are often lasting ones!
  12. 12. What’s The Recipe? DAY 1 Productivity
  13. 13. Stage One
  14. 14. Two Different Scenarios – First Scenario – One-Way • Employee proves him/herself to be worthy of the job/organization – Result: Employee hangs around…organization is happy • Organization does little to integrate new employee – Result: Employee has weak job/organizational impression • Little ‗engagement‘ • Little ―discretionary effort‖
  15. 15. Two Different Scenarios Second Scenario – Two-Way • Employee proves him/herself to be worthy of the job/organization – Result: Employee hangs around…organization is happy • Organization creates detailed employee integration strategy – Result: Employee has a well defined and integrated impression… • Highly engaged from day one… • Increased discretionary effort moving forward!
  16. 16. Integration Activities impact on Discretionary Effort Onboarding Activities Changes in Discretionary Effort Clearly Explaining Job Importance 23.4% Teaching About Organizational Vision and Strategy 21.9% Teaching About Group/Division 21.5% Clearly Explaining Performance Objectives 20.9% Clearly Explaining Job Responsibilities 20.3% Introducing New Hires to Other New Employees 19.2% Providing Work Immediately 18.8% Providing Necessary Tools and Resources 17.9%
  17. 17. What’s The Recipe? DAY 1 ?
  18. 18. Stage 2
  19. 19. Employee Commitment Commitment Components • Rational commitment Forms when employees believe they will personally benefit—financially, developmentally, or professionally • Emotional commitment Commitment is commitment of the ―heart.‖
  20. 20. C le ar C ly le E Changes in Intent to Stay ar xp ly la E in xp s la Jo in b 35.00% s 30.00% 25.00% Im 20.00% 15.00% 10.00% 5.00% 0.00% Pe po rfo rta rm nc Te Te an e ac ac ce he he O 32.40% s s bj ec ab ab ou ou tiv tO tG es rg ro Intent To Stay? Pr an up 31.90% ov iz /D id at io iv es na isi ne on lV In ce is tro ss io 31.80% du ar n ce y an s to ol d ot s . .. he an rn d ew re so 31.70% hi ur C re ce le s s ar to ly N E ew xp E 30.70% la m in s pl ... Jo b R Max Impact of Areas of Onboarding Focus on Intent to Stay es Pr po 30.00% ov ns id ib es il it W ie s or k Im 28.60% m ed ia te ly 24.80%
  21. 21. Commitment Wheel A Effective Increased Performance/ Integration Productivity Foundation E B Commitment Wheel Rational Emotional Commitment Commitment D Increased C Intent to Stay
  22. 22. What’s The Recipe? DAY 1 ?
  23. 23. Stage 3
  24. 24. The Critical First 90-Day Impression! • Your first 90-day actions will determine your success or failure… • Your new hire is able to move on if necessary…can your organization afford to? • A time of acute vulnerability and high stakes for the organization • If you fail to build momentum, your uphill battle become that much more challenging and costly • Remember: The overriding goal in a transition period is to build momentum by creating virtuous cycles that build credibility…avoiding vicious cycles of credibility damage
  25. 25. Bad Credibility : Resources Good Credibility: Resources Consumed with no Momentum Consumed and momentum is allowed to be reached Momentum Reached + + Value Creation Value Creation 1st day 30th day 60th day 90st day 1st day 30th day 60th day 90st day 0 0 Weeks after entry Weeks after entry _ _ • Low-level integration: • Initial emphasis ensures – Reduced engagement levels momentum will be reached – Reduced • Once the pendulum starts to swing productivity/discretionary effort foundation is created for: – Ongoing employee engagement; – Organizational risk increases productivity/ discretionary effort – Risk reduced
  26. 26. What’s The Recipe? DAY 1 Productivity
  27. 27. C. 1. Introduction 2. Definition of Integration and Orientation 3. Process Mechanics 4. ROI
  28. 28. Introduction Thoughts: – How fast do you expect your employees to become productive? – At what point does your organization need new employees to be productive Recent survey conducted in the UK found that 4% of new hires had such a disastrous first day that they never went back. - Reed Executive
  29. 29. Integration/Onboarding – A Foundation • Educational Tools – Communicating consistent and accurate messaging…prevents misunderstanding – Expectations/support: regular 1:1 sessions with the manager • Psychological Tools – Eases anxiety of being the ‗new kid‘… • Social Tools – ―Fitting in‖…we are social creatures at the end of the day…who wants to spend the first week with complete strangers?
  30. 30. Three Tiered Approach 1. Pre-integration – Making connections with the employee prior to arrival 2. Orientation – Orientation is one part of the greater Onboarding process. – Focus on Employee education – Company and Job – Typically is done within the first few days 3. Integration/Onboarding – A process and strategy that starts with the first potential new hire contact – Typically lasts for 3 months to 1 year in duration – Critical strategy to build employee ‗engagement‘ and ‗commitment‘ – The one chance to create a foundation for sustained employee productivity and effective ROI
  31. 31. Buying In…Key Stakeholders It‘s all of Our program, but the front-lines live it day-in and day-out!
  32. 32. Process Mechanics Pre-Integration Stage one – Pre-offer period • The initial stages of the integration program • The initial formation of first impressions is critical! • A one-chance event to create an impactful/realistic view
  33. 33. Process Mechanics Pre-Integration Stage Two – ―Extending the Offer‖ • Detailed explanation of the offer and company relative to the new hire‘s specific role • Introduction to the working environment and team
  34. 34. Process Mechanics Orientation Stage Three – ―The first day‖ • Get the ship sailing while the winds are high! – Take advantage of ―new employee enthusiasm‖ – Make him/her feel welcomed – Lunch – Buddy program • Introduction to the working environment and team • Small chunks at a time – Do not cram too much at one time
  35. 35. Process Mechanics Orientation Stage Four – Orientation – ―The second day‖ • Give them the lay of the land – not just their department, and the washrooms… • A time to educate about the company, it‘s culture and key expectations • Key elements of the job • Solidify the organizational vision, goals and objectives e.g. client service; Career development
  36. 36. Process Mechanics Onboarding Stage Five – ―Post Orientation‖ • Integration/onboarding process is well on it‘s way • The key at this stage is sustaining the momentum: – Pay close attention to the employee to ensure ongoing care and a sense of security – Ensure close relationships are being built • Direct manager • Skip-level manager • Team members
  37. 37. Process Mechanics Onboarding Stage 5 – ―Post Orientation‖ • Actively demonstrate your commitment to the new hire – Regular 1:1‘s at least 1-2 a week – Impress upon the new hire the department‘s expectations & when certain performance levels are expected – Support the ―new hire buddy‖ for ongoing new hire integration – Start to emphasize the importance of new hire‘s career goals • Extend this stage between 3-12 months – Other than the first 3 months, an on-going culture of enhancing employee development will sustain employee engagement and commitment – Establish structures to sustain the culture produced
  38. 38. Return On Investment How do you measure the ROI? • Cost avoidance • Cost Reduction • Increased revenues (If applicable)
  39. 39. Avoiding Direct/Indirect Costs • Time spent by recruiters • Time spent by managers • Time spent by trainers • Potential travel costs
  40. 40. Streamlining to Increase Productivity • Continue to increase effectiveness of process – Evaluate Re-evaluate • Accelerate employee‘s learning curve • Reduce amount of days to make the employee productive…sustaining productivity and subsequent discretionary effort
  41. 41. ROI Example • Typical amount of days to reach acceptable productivity 120 • Less ―revised‖ number of days to reach acceptable productivity –105 • Productivity days saved/productivity 15 improved • 1 day average cost per employee (Based on 40K / Yr) $150 • Multiplied by # days saved 15 $2,250 • Assumed onboarding cost – $1,000 $1,250 ROI = 125%
  42. 42. Practical Suggestions • Suggestion 1 – Onboarding/Orientation starts well before the first day…ensure communication when the offer is in hand • Suggestion 2 – Don‘t cram it all into one day…by inundating you ‗newbie‘ won‘t allow for a warm welcome • Suggestion 3 – Get the applicable managers in front of the newbie for the first 20-30 mins and get the introductions done • Suggestion 4 – Take him or/her out for lunch to create a warm welcome…don‘t overdo it by creating false impressions!
  43. 43. Practical Suggestions • Suggestion 5 – Do not design your sessions to be long rambling lectures…ensure interactive learning modules • Suggestion 6 – Most managers complain of no time to train…establish a ‗buddy program‘ to provide an extension of the manager to get this done • Suggestion 7 – Solicit feedback from new hires and their managers to evaluate your program • Suggestion 8 – Design your program with your Line management team…it is their program after all!
  44. 44. References Cited • Cadwell, Charles M. ―New Employee Orientation: A Practical Guide For Supervisors‖ (1988) • Watkins, Michael D. ―Help Newly Hired Executives Adapt Quickly‖. Harvard Business Research (2007) • Erickson, Tamara J. & Gratton, Lynda. ―What it means to work here‖. Harvard Business Research (2007) • Corporate Leadership Council (2004), ―New Hire Onboarding activities‖ • Corporate Leadership Council (2004), ―Coordinating New Hire Onboarding‖ • Corporate Leadership Council (2008), ―Developing a Business Unit Level Orientation Program‖ • Corporate Leadership Council (2008), ―Maximum Impact of Onboarding Levers on Discretionary Effort‖ • Dr. Sullivan, John. ―Dr. John Sullivan‘s Onboarding Activities for New Hires‖ (2008) • Corporate Leadership Council (2003), ―Models and Methodologies for On-Boarding Programs‖ • Corporate Leadership Council (2001), ―Southwest Airlines‘ Employee Orientation Program‖ • Moretti, Michael. ―Best Practices in Onboarding and Employee Orientation‖. HR.com (2006)

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