On-boarding Programs to Increase Employee Retention

As younger generations enter the workforce, many companies are rethinking their traditional “orientation” programs. The needs of these generations are transforming the business environment, causing employee loyalty to decrease and turnover to increase. Many companies have discovered an effective on-boarding program can assist in resolving this problem.

A New Breed of Worker Drives Change 

Today’s new workforce is transforming the traditional business environment in critical ways. Understanding their needs is the first step to connecting with them and keeping them satisfied on the job. In fact, your ability to meet their employment needs could determine the future success of your organisation.

Technology companies saw employee loyalty wane in the early nineties, as opportunities for high-tech workers grew to unprecedented levels. Employees were quick to leave one company for another, with a promise of better pay, better skill development, even a better office - a huge departure from the Baby Boomers who sought the security of the same job, often for a lifetime.

Now, as Baby Boomers head into retirement, Generations X and Y are in full swing. In fact, they’re predicted to represent 70 percent of the workforce by 2012. But, with far fewer Generation X and Y workers entering the labour market, large gaps between supply and demand are expected over the next 20 years. 

Effective On-boarding Leads to Cost Savings

What was once known as “new employee orientation” has evolved into a new concept called on-boarding. More than just a new HR buzzword, on-boarding is a comprehensive process of integrating a new employee into an organisation. After the selection process, on-boarding is arguably the single most critical step to ensuring the success of your new employee.

Even the most successful on-boarding programs will not eliminate unwanted turnover. However, improved on-boarding can offer a strategic advantage in today’s labour environment by helping prevent situations where turnover occurs shortly after hire.

This can result in costing the company approximately $13,000 per employee. This can represent a lost investment of up to $500,000 per executive.

These costs reflect the hard costs associated with recruiting and training as well as the soft costs related to lost productivity while new employees get acclimated in a new job. Getting acclimated, according to the experts, takes approximately six months for a mid-level manager. 

Make a Positive Impression

So what is the difference between on-boarding and a standard orientation? A true on-boarding process starts well before your new employee’s first day. Often, a prospective employee will have already formed an opinion about your company (from your website, marketing, word of mouth), long before considering employment.

The following six strategies are intended to help you develop a solid on-boarding program for your company.

1. Make it hands-on and face-to-face
If you want to make a good impression on your newly hired employee, start off by replacing the company orientation manual with human interaction. On-boarding processes that incorporate human interaction enhance effectiveness, satisfaction and retention - and will help your company realise a valuable return on your investment.

Consider giving your new hire a gift to commemorate their first day: a coffee cup, T-shirt, or company pen set. However small the gift, it represents your appreciation of your new employee.

Promote communication: Generation X and Y workers, in particular, seek one-on-one communication with a supervisor who is approachable and appreciative. A manager or supervisor will help new employees understand what’s expected of them, and where/how they fit into the big picture.

2. Invest in on-boarding technologies
Experts agree that automation is critical when establishing a successful on-boarding program. The right tools will accelerate employee orientation, and that means less down time and greater productivity.

The right software can tie every detail of your on-boarding program together: hiring-related paperwork, “first day” schedule, system set-ups, email correspondence, benefits programs and training.

3. Position managers in key on-boarding roles
Managers should play a key role in the new employee’s on-boarding experience. Experts say that managers who are accountable for a smooth employee orientation are more committed to getting the new hire off to a productive, positive start. By setting understandable expectations on both sides, employees know what they need to accomplish and, equally important, they also know what to expect from their managers.

4. Assign a mentor
Existing employees are perfect candidates for mentoring new employees. A mentor helps a new co-worker become acclimated to his/her job, their responsibilities and to your company culture. Building these relationships right away, promotes loyalty, and increased productivity, as your new hire quickly acclimates themselves to their new position.

5. Make it last
Most employees need to know they’re doing a good job, so keep the feedback flowing after the first few weeks on the job. Ongoing meetings with a new employee - however brief - are a great venue for keeping the lines of communication open. Consider holding meetings with the new employee in different areas of your company, giving him/her a look at the full scope of your organisation. Consider introducing the new employee to managers from other departments to give them a sense of how they fit into the organisation.

6. Establish reachable goals
New employees want to contribute to their workplace as quickly as possible. Give them real work that can be completed within the first few weeks. Getting these employees “up and running” as soon as possible gives a new employee a sense that he/she is a valuable and necessary member of the team.

June 2011