Upload
others
View
8
Download
0
Embed Size (px)
Citation preview
Strategic Onboarding:
The Effects on Productivity, Engagement, & Turnover
By: Lisa Reed, MBA, SPHR
Onboarding Defined
A systematic and comprehensive approach to
integrating a new employee with an employer and its
culture, while also ensuring the employee is provided
with the tools and information necessary to
becoming a productive member of the team (1).
How Important is Onboarding?
43% of employees state the opportunity for
advancement was the key factor in deciding whether
or not to stay with an organization, and the
onboarding process, or lack thereof, was a main
factor in determining advancement potential within
a company (2).
EMPLOYEE
PRODUCTIVITY
What is Employee Productivity?
An assessment of the efficiency of a worker or group
of workers, which is typically compared to averages,
is referred to as employee productivity (3).
Costs of Employee Unproductivity
More than $37 billion dollars annually is spent by
organizations in the US to keep unproductive
employee in jobs they do not understand (4).
What Effect Does Strategic Onboarding Have On Employee Productivity?
Only 49% of new employees without formal onboarding meet their first performance milestone (5).
In contrast, 77% of employees who are provided with a formal onboarding process meet first performance milestones (6).
Employee performance can increase by 11% with an effective onboarding process, which can also be linked to a 20% increase in an employee’s discretionary effort (7).
EMPLOYEE ENGAGEMENT
What is Employee Engagement?
Employee engagement describes the way employees show a logical and emotional commitment to theirwork, team, and organization, which in turn drivestheir discretionary effort.
Costs of Employee Disengagement
Actively disengaged employees are more likely to
steal, miss work, and negatively influence other
workers and cost the United States up to $550 billion
annually in lost resources and productivity (8).
What Effect Does Strategic Onboarding Have On Employee Engagement
• Employers who invest the time, commitment, and resources to the onboarding process are rewarded with higher levels of employee engagement (9).
• A strategic onboarding process not only prepares the new employee for his/her respective role, it has a directimpact on the employee’s initial performance and engagement by promoting confidence and involvementat the most crucial point in the employee’s life cycle (6).
EMPLOYEE TURNOVER
How to Calculate Employee Turnover by Month
monthly turnover rate
number of separations during the month average number of employees during the month
(Divide # of separations by # of employees and multiply by 100)
For example, let’s say we had 80 employees during the month of Feb. and 4 employees separated employment in Feb.
m = 4 ÷ 80 X 100 m = 0.05 X 100 m = 5% turnover rate for the month of February
What is Employee Turnover?
The rate at which employees depart and are replaced within an
organization is referred to as employee turnover (10).
Turnover can be categorized into four groups, which are exit costs,
vacancy costs, recruitment costs, and onboarding costs (11).
Costs of Employee Turnover
It costs up to 50% of an entry-level employee’s salary to
replace him or her, 150% for mid-level employees, and anastonishing 400% for high-level and highly specialized
employees (12).
Additional factors for consideration are decreased service levels and increased errors, which occur more often when
employers experience turnover.
What Effect Does Onboarding Have On Employee Turnover? Over 90% of new hires decide within the first three months if they are staying with that employer (13).
A 2014 survey found that one third of every 1,000 respondents reported they had quit a job within 6
months of starting, and of those respondents, 17% state they left before the third month. Interestingly,
one third of those who quit state they did not receive any form of onboarding (1).
Of those who quit before six months of employment, 23% state they would have stayed longer if they
had received clear guidelines to what they’re responsibilities were, 21% would have stayed if effective
training had been provided, 17% stated a connection with a coworker would have helped them stay,
12% would have stayed had their unique abilities been recognized, and 9% desired more attention from
the manager and coworkers (1).
69% of employees who receive a structured onboarding process stay past the three year mark (13).
Okay, Now What? There are many different approaches to strategic onboarding.
Onboarding: How to Get Your New Employees Up to Speed in Half the Time (Bradt & Vonnegut)
Successful Onboarding: Strategies to Unlock Hidden Value Within (Mark Stein)
Creative Onboarding Programs: Tools for Energizing Your Orientation Program (Doris Sims)
GOAL
Transactional Onboarding TO
Strategic Onboarding
How Do You Get There?
Strategic Onboarding at a Glance
New EmployeeOrientation
~Forms, Checklists ~Transactional~Paper-Based ~1 Day or Less with HR
Onboarding ~Separate from Hiring ~Training Process ~Culture-Setting ~Formal Introductions
A Process
Strategic Onboarding ~Integrated with Hiring ~Socialization ~Mentoring ~Use of Technology
An Experience
A Checklist
(15)
Strategic Onboarding Model
Before First Day • Extend personal
welcome • Communicate
first day logistics • Send paperwork
in advance and any online/portal access • Prepare for
employee’s arrival
First Day/Orientation • Focus on sharing
the mission and values • Incorporate
senior leadership • Orient employee
to workplace and ‘norms’ • Assign/introduce
mentor/sponsor • Fulfill immediate
requirements for employment
First Week • Ensure direct
managerial involvement • Set performance
expectations and job scope • Assign
meaningful work • Communicate
resources or networks required for work
First 90 Days • Provide essential
training • Monitor
performance and provide feedback • Obtain feedback
through new hire survey and other means
3 & 6 month ‘Touchpoints’
First Year • Recognize
positive employee contributions • Provide formal
and informal feedback on performance • Create employee
development plan
Outcomes:High employee job satisfaction level ~ Retention of high-performers ~ Continued employee engagement and commitment ~ Faster time-to-productivity (18)
The Four C’s of Onboarding
Compliance – Teaching employees basic legal and policy-related rules and regulations
Clarification – Ensuring new employees understand theirnew jobs and all related expectations
Culture – Providing employees with a sense oforganizational norms – both formal and informal
Connection – Helping the new employee establish vitalinterpersonal relationships and information networks
12 Best Practices
Ensure that the program ismonitored over time.
Be sure your program is consistentlyimplemented.
Make onboarding participatory.
Develop a written onboarding plan.
Use formal orientation programs.
Make the first day on the job special.
Implement the basics (e.g., preparetheir workstation, cell phone, andother essentials) prior to the first dayon the job.
Use technology to facilitate theprocess.
Use milestones, such as 30, 60, 90and 120 days on the job – and up toone year post-organizational entry —to check in on employee progress.
Include key stakeholder meetings aspart of the program.
Engage stakeholders in planning.
Be crystal clear with new employeesin terms of:
• Objectives.• Timelines.• Roles.• Responsibilities.
(16)
Five Strategies to Consider
1. Extend Learning Timeframe 2. Learn Through Others 3. Guide Learning 4. Measure Impact 5. Standardize and Scale (17)
Extend Learning Timeframe
FOCUS: Adding a relational learning component
HOW: Extending onboarding program past six months
EFFECT: 1. Learn more completely. Learning in small bites over time, known as the“spacing effect,” enables better understanding, retention, and adoption ofworkplace learning.
2. Improve performance. Adding on-the-job learning over an extended timeperiod reaps big benefits in terms of helping that employee understand thejob, understand how it relates to the ‘big picture’, and achieve productivity faster.
3. Have higher retention rates. Transforming your workplace into a continuallearning environment keeps employees engaged and interested, which are keyfactors for improving new hire retention.
Learn Through Others FOCUS: Adding a ‘show me, don’t tell me’ approach
HOW: Incorporating personalized 1:1 collaborative learning connections
EFFECT: • Better data retention with the “show” vs. “tell” approach. Hands down, people learn
better when shown in person in an on-the-job environment.
• Increased employee engagement. Being face-to-face with someone demands attentivelistening and feedback, resulting in a more productive learning experience.
• Ability to understand the “soft” learnings of a job. We all know there’s so much to learn beyond specific job responsibilities to be a success. Understanding intangible aspectslike culture or the weight of departmental priorities can play a huge role in employeesatisfaction and, ultimately, success.
• An understanding of the “insider tips” everyone needs to do their job. Who’s your go-to person in accounting to get something approved? What managers should be kept in –or maybe out – of the loop? Understanding these tips is vital to employee performanceand success.
Guide Learning FOCUS: Adding a structure for informal, on the job learning
HOW: Implementing guided workflows (checklists) that are continuous and productive
EFFECT: • Specific milestones and tasks are addressed. Mapping out everything from
initial training through connecting with a peer through completing specificmilestones creates a structured learning opportunity that does not wane overtime.
• Check-ins and assessments provide real-time feedback. Built in checkpointsgauge progress and identify issues earlier. Self, peer, and managerialassessments can provide new hires with invaluable feedback.
• A definitive end point to the program provides focus. Having a clear end point helps employees focus on reaching their goals. It’s also the right time tomeasure outcomes at the individual, job function, and overall program level.
Measure Impact FOCUS: Assessing the success of the onboarding program
HOW: Implementing and tracking metrics on two levels – employee andprogram – using surveys
EFFECT: • Achieved understanding of individual success. Gain answers to
questions such as: • Was the learning productive? • Did the employee feel anything was missing? • Did he/she enjoy the process or feel it was a chore?
• Achieved understanding of program success. Evaluate program success by:
• Tracked data showing time-to-productivity rates • Before and after turnover rates • Onboarding completion rates • Identify progression rates toward business objectives
Standardize and Scale
FOCUS: Standardizing for repeatability
HOW: Encompassing all new hires consistently
EFFECT: • Uniform, effective new hire experience
• Consistent new employee training
• Adoption of the workplace culture
• Clear understanding of expectations and goals
A Parting Thought
Onboarding is not a single event,it is an ongoing talent strategy!
Resources1. Society for Human Resource Management, 20132. Boettcher, 20093. Van den Brand, 20154. Llarena, 20135. CIMS, 20176. Windust, 20167. Society for Human Resource Management, 20158. Lipman, 20139. Ali, n.d.10. Mayhew, n.d.11. Rossheim, 201612. Borysenko, 201513. Beuder, 201314. Ndunguru, 201215. Bersin & Associates, 200916. Insperity, n.d.17. Chronus, n.d.18. US Dept. of Defense