OnBoarding

So…What

Does It Mean

To Work Here?

Bruce BakerJanuary 09

Doing It Right The First Time!

Today’s Agenda

A. Economics – Yesterday vs. Today

B. The First Impression…A Powerful

Strategy

C. Creating an Orientation & Integration

Strategy

A.

Economic Transition

Yesterday

• Buyers market

• Revolutionary age

• Anticipated rate/level of

change

• Manageable competition for

product market share

• Productivity/Employee

retention…an expected

norm

Today

• Seller‘s market

• ‗Information‘ age…

‗overload‘ age?

• Fast pace

• Cutthroat competition for

Knowledge/skill – Human

Capital share

• Productivity/Employee

retention…a critical

element of survival!

Traditional HR Mandate…No

Complexity!HR’s Mandate

1. Recruit

2. Develop

3. Retain

1. Recruit

2. Develop

3. Retain

Effective Integration

Eff

ect

ive

Int

egr

ation

Eff

ect

ive

Int

egr

ation

Innovative Strategy in

Winning the War for Talent

Good Start• ―Keep up with Joneses‖ –

The quest to find and retain talent…match industry trends

Sustained Success• No matter how much we

match trends, focus must be placed on unique business/employee qualities/values

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 contributebut are in a position to be retained

Bottom Line…• We have 1 chance to make sure we keep ‗em!

• So why do ‗they‘…our critical key advantage…continue to leave early?

• Drive the ‗Drivers‘ out with a simplistic but powerful first impression!

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

B.

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!

DAY 1

Productivity

What’s The Recipe?

Stage One

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‖

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!

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%

DAY 1

?

What’s The Recipe?

Stage 2

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.‖

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32.4

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31.9

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31.8

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31.7

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30.7

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30.0

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28.6

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24.8

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5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Changes in Intent to Stay

Max Impact of Areas of Onboarding Focus on Intent to Stay

Intent To Stay?

Commitment Wheel

Effective

Integration

Foundation

Emotional

Commitment

Increased

Intent

to Stay

Rational

Commitment

Increased Performance/

Productivity

A

B

CD

E

Commitment Wheel

DAY 1

?

What’s The Recipe?

Stage 3

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

Bad Credibility : Resources

Consumed with no Momentum

• Low-level integration:– Reduced engagement levels

– Reduced productivity/discretionary effort

– Organizational risk increases

+

_

1st day 30th day 60th day 90st day

Weeks after entry0

Valu

e C

reation

_

1st day 30th day 60th day 90st day

Weeks after entry0

Valu

e C

reation

Momentum Reached

• Initial emphasis ensures momentum will be reached

• Once the pendulum starts to swing foundation is created for:

– Ongoing employee engagement; productivity/

discretionary effort

– Risk reduced

+

Good Credibility: Resources

Consumed and momentum is

allowed to be reached

DAY 1

Productivity

What’s The Recipe?

C.

1. Introduction

2. Definition of Integration and Orientation

3. Process Mechanics

4. ROI

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

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?

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

Buying In…Key Stakeholders

It‘s all of Our program, but the front-lines live it

day-in and day-out!

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

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

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

Process MechanicsOrientation

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

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

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

Return On Investment

How do you measure the ROI?

• Cost avoidance

• Cost Reduction

• Increased revenues (If applicable)

Avoiding Direct/Indirect Costs

• Time spent by recruiters

• Time spent by managers

• Time spent by trainers

• Potential travel costs

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

ROI Example

• Typical amount of days to reach

acceptable productivity

• Less ―revised‖ number of days to

reach acceptable productivity

• Productivity days saved/productivity

improved

• 1 day average cost per employee

(Based on 40K / Yr)

• Multiplied by # days saved

• Assumed onboarding cost

120

–105

15

$150

15

– $1,000

$2,250

$1,250

ROI = 125%

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!

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!

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)