An effective on-boarding program can save your organization thousands of dollars!
In demanding economic times, it is crucial for corporate America to foster an employee-friendly and committed work environment. This friendly and
committed work place should provide the organization with a reduced employee turnover rate. This reduction in turnover will reduce operating costs
in such areas as new employee recruitment, training and development, and the costs related to unfilled positions, just to mention a few.
Some forecasts estimate the cost of employee turnover to be as high as "150% of the employee's annual compensation" (Bliss, 2008). This percentage
can easily be reached (and even surpassed) when the costs associated with loss of productivity are considered. Take, for example, an employee with
an annual salary of $40,000 dollars. Costs for recruiting efforts for this position could run as high as $5,000 dollars. Add to this, the cost for
the time the position is not filled (cost due to lost of productivity); the cost due to loss of knowledge and skills, and last, the cost associated
with training the new employee, and this could easily surpass $60,000 thousand dollars.
The question now becomes, what can an organization do to reduce employee turnover and save thousands of dollars? Many things can be done, but one of
the most effective things to deal with employee turnover is to establish a program that develops and mentors new employees. "Without this continuous
learning, people cannot function in an evolving culture of empowerment" (Blanchard, 2007, p. 81). In this article the author offers six reasons why
organizations should invest in an effective on-boarding program, and thus reduce employee turnover.
Reason number 1: Provide the new hire with the necessary tools to adapt quickly.
When should an organization worry about training their employees? Certainly not when the employee is about to leave or walk out the door! The most
appropriate and effective time to initiate training is at the time of hire. That is when a solid foundation needs to be established, providing the
new hire with the necessary tools to quickly adapt to, and continue to thrive in, his or her new environment.
The goal is to provide the new hire with the necessary knowledge as outlined in the on-boarding program, and empower him or her to become a productive
team member. Remember, "Investing in people doesn't require significant additional financial resources. It requires being aware and committed enough
to unleash the talents, resources, and energy already present within the organization, using those to enhance performance, leadership, collaboration,
and innovation" (Sayle & Kumar, 2006, p. 18).
Reason number 2: Provide a good first impression.
One must keep in mind the old saying, "a person only has one opportunity to make a good first impression." This is so true! Providing a high-quality
on-boarding program is crucial for attaining a good first impression. It says that the institution cares about its new employee. It says that the
organization and its leaders are committed to creating a "work environment that causes people to do their best every day" (Daniels & Daniels, 2007,
p. 94). It says that this type of work environment will assist our new employees in attaining a greater understanding of the organization, and makes
them feel better, have more confidence, and builds their morale, not to mention achieving a quicker sense of belonging. It says that the organization
believes that a good on-boarding program pushes towards making a good first impression and providing the new hire a quick immersion into the
organization's history and culture.
Reason number 3: Provide an introduction to the organization, the team, and the job:
The following suggestions should assist the reader in building a more effective on-boarding program. Keep in mind that an effective on-boarding
program introduces the new member to the organization, and assist him or her in familiarizing with, and adapting to the culture, as quickly as
possible, while undertaking his or her new responsibilities. It is important to note, "When work is meaningful and connected to what we truly desire,
we can unleash a productive and creative power we never imagined" (Blanchard, 2007, p. 29). The on-boarding program should serve as the channel in
unleashing this meaningful connection for the new employee, as he or she receives answers and finds a deeper purpose to fulfill within the organization.
The on-boarding manual or web-based presentation should include the following sections (which could be broken up into units):
1) The first unit serves as an introduction to the organization. It should include the organization's vision, mission, and core values. The org chart,
the leaders, and the history are all good things to add in this section. Furthermore, including a compliance piece in this segment (the dos and don'ts)
will impress upon the new employee the organization's way of doing business, and how important it is.
2) The second unit serves as an introduction to the department or team that he or she will be working in. Introduce them to the department's mission,
its leaders, and the value that is provided by the department to the success of the rest of the organization. Introduce the new employee to the
department's org chart.
3) The third unit serves as an introduction to the employee's specific job responsibilities. Share best practices, and team the new member with
someone who is really effective and will be a good mentor.
This manual or web-based presentation ought to engage the new employee quickly. It should be easy to read and browse, and make a good first
impression of the organization. The on-boarding content (units 1 through 3) is best delivered using a variety of teaching methods. The more
diverse the methods, the easier it will be to engage and keep the attention of the new employee. Include videos, tours, the Internet, online
searches, interviews, and reading materials (to mention a few).
Reason number 4: Provide assessments to ensure proper learning is taking place.
Assessing an individual's learning is crucial for a good on-boarding program to be effective. This can be done by providing the new employee with a
simple quiz, or a verbal interview that provides the leader with the assurance that the new employee has understood the basic concepts and
information presented to him or her. The on-boarding program is a valuable learning tool that is instrumental in improving the new hire's thinking
process, allowing him or her to connect concepts and ideas more easily. This is important because, "when people make deep, new connections in their
own mind, there is a tangible release of energy, a discernable (aha) moment that fills us with a desire to take action" (Rock, 2006, p.39).
Making those connections quickly is critical to ensure that the new employee understands what sets this organization apart from the rest, and how he
or she becomes a productive member of the team. Assessing this area is important in addition to the vision, mission, and core values. Ensure that a
clear understanding of the culture and of the new hire's responsibility has been achieved as this is a dire necessity at this stage.
Reason number 5: Provide a mechanism for feedback.
Furthermore, the on-boarding program must provide the organization and the new employee with some type of feedback. A feedback mechanism permits
the employer to provide guidance to the new employee. This guidance serves as assurance to the new employee that he or she is doing well and is heading
in the right direction. It gives an opportunity for the new hire to become confident by hearing what he or she is doing correct, as well as make
adjustment if he or she is missing the mark. This feedback should occur at every level of the process and in every unit of the on-boarding program.
It does not have to be extensive, just enough to keep the new employee aligned to the end result.
The mentor (or the boss), ought to be the responsible party to provide I.F. (Instant Feedback). Instant feedback is to be understood as an
opportunity for the new hire to hear his or her mentor apply knowledge to the assigned responsibilities and provide the whys (the reason and or
purpose) behind each task. "This should be done in the spirit of empowering the new hire to take responsibility for his or her own on-boarding
experience" (Rees, 2005).
Not only is it important for the mentor to provide I.F. to the new hire, but also to allow the new employee the opportunities to give feedback to his
or her boss or higher-ups. An open channel of communication is crucial during this developmental phase, because it empowers the new employee and
assures him or her of belonging and gives the indication that his or her comments are heard. From another angle, this feedback will assist the
leader in hearing any frustrations or signs of distress from the new hire.
Reason number 6: Provide the organization with a faster ROI.
Every organization, no matter the size, should invest in an effective employee on-boarding program, which in the long run, will reduce turnover expense.
A successful on-boarding program should reduce the learning curve of a new hire, and thus shorten the ROI (Return on Investment). The earlier the ROI
can be satisfied the less of a risk the new hire is to the organization. But how can this concept be trusted when "our experience shows that, on average,
corporations deliver only 60 percent of the financial performance their strategies promise" (Sayle & Kumar, 2006, p. 17).
The solution lies in ensuring that the on-boarding program focuses on people rather than on process. The on-boarding program must engage the new hire in
such a way that he or she is experiencing a burning desire to become a contributing member of the team. The quicker this is accomplished the faster the
ROI is satisfied. "When employees are intrinsically motivated by their work and engaged in the company goals, the outcome is accelerated success"
(Sayle & Kumar, 2006, p. 19).
As delineated in this article, an effective on-boarding program can save your organization thousands of dollars while ensuring a stronger and more
solid workforce. Creating an effective on-boarding program will not only impact your bottom line, but it will also provide your new hires with a
great first impression. Providing early guidance and training will solidify the employer-employee relationship and create an effective solution to
reducing employee turnover.