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1:00 PM ET. Best Practices in Onboarding and Employee Orientation. Michael Moretti Sr. Staffing Analyst HR.com mmoretti@hr.com. Introduction Definition of Onboarding & Orientation Case Study Designing the Process Mechanics of the Process The Return on Investment Top Ten Objectives

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Best Practices in Onboarding and Employee Orientation

Michael Moretti

Sr. Staffing Analyst

HR.com

mmoretti@hr.com


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  • Introduction

  • Definition of Onboarding & Orientation

  • Case Study

  • Designing the Process

  • Mechanics of the Process

  • The Return on Investment

  • Top Ten Objectives

  • Summary & Wrap-up

  • Q&A


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  • In January 2003 a survey of 5643 workers conducted in the U.K. found that 4% of new hires had such a disastrous first day that they never went back.

  • Reed Executive

  • Consider:

  • How fast do your new employees become key contributors?

  • Does your organization proactively build relationships with newly hired top talent?

  • What distinction does your organization make between

    on boarding and orientation of new hires?


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Definition of Onboarding U.K. found that 4% of new hires had such a disastrous first day that they never went back.

Onboarding is the process that starts with the first contact of a potential new hire - building and establishing engagement earlier in the employment stage and continuing after the traditional orientation program ends.


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Definition of Orientation U.K. found that 4% of new hires had such a disastrous first day that they never went back.

The Orientation program is a part of or one stage of the more comprehensive on boarding process.

The is the stage designed to educate new hires about your company and more specifically about their job functions.

These programs need to be consistently applied to all new employees and are usually spread out over a number of days.


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Case Study U.K. found that 4% of new hires had such a disastrous first day that they never went back.

  • 150,000 employees

  • 35,000 hires

  • HR discovered the attrition problem could actually be traced to employees' very first days on the job.

  • The result was a renewed respect for the orientation program that ultimately led to a vast overhaul of the organization's existing program and the development of new tools that would better equip managers to welcome new hires.


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Strategy U.K. found that 4% of new hires had such a disastrous first day that they never went back.

  • Task force dubbed Strategies and Tactics to Achieve Reduced Turnover (START).

  • Task force consisted of 65 to 70 people ranging from directors to managers to hourly workers.

  • Within the broader framework, START was divided into approximately a half-dozen subgroups, each charged with examining a different aspect of the employment experience, such as recruitment and hiring, training and development, pay and rewards, rewards and recognition, and orientation.


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Designing the Process U.K. found that 4% of new hires had such a disastrous first day that they never went back.


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Mechanics of the Process U.K. found that 4% of new hires had such a disastrous first day that they never went back.

Stage One – “The Pre-Offer”

  • Earliest stage in the onboarding process

  • First impressions are being formed

  • Make a positive and realistic impact on the employee’s understanding & expectations of the company

  • Involve a variety of people in the interview phase

  • Actively manage candidate’s expectations and communicate clearly

  • Give candidates a realistic overview of their role


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  • Stage Two – “Extending the Offer” U.K. found that 4% of new hires had such a disastrous first day that they never went back.

    • Provide detailed and relevant company information to candidate

    • Customize the new employee package to the specific job family – should include information on benefits, insurance policies, practices, job description of the role and an employee handbook

    • Provide a site tour to show where they will work and introduce them to their new colleagues


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  • Stage Three – “The First Day” U.K. found that 4% of new hires had such a disastrous first day that they never went back.

    • Take advantage of a new employee’s enthusiasm

    • Ensure they leave at the end of the first day, week and month with the same level of enthusiasm

    • DO NOT cram too much information into the first day

    • Introduce the new employee into the company and their role e.g. plan an informal breakfast or lunch meeting to welcome the new candidate by existing staff


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Stage Four - “The Orientation Program” U.K. found that 4% of new hires had such a disastrous first day that they never went back.

  • Structure a comprehensive tour

  • Educate attendees about your company

  • Provide a well designed series of learning modules Divide the orientation program into 2 sections:

    • Organization - Everyone

    • Elements of the job – Specific to the role

  • Solidify organizational goals and familiarize new employees with company terms


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Stage Four Continued - “The Orientation Program” – The Organization

Comprehensive Tour might include:

  • Company Vision

  • Introduction to the Structure, Executive Team and Key Personnel

  • Company Approach to the Market

  • Client Success stories and project highlights

  • Marketplace trends

  • Human Resources policies, procedures

  • Training and Development

  • Functional Responsibilities


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Stage Four Continued - “The Orientation Program” – Specific to the Role

Tour Modules might include:

  • Department responsibilities

  • Role responsibilities and accountabilities

  • Specific skills required – technologies, methodologies…etc.

  • Specific knowledge required

  • Career paths and opportunities


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Stage Five – “Post Orientation” Specific to the Role

  • Onboarding process continues

  • Clearly define and communicate the post-orientation stage

  • Pay close attention to the new employee and provide ongoing care, concern and a sense of security

  • Clearly monitor performance against role expectations

  • Actively demonstrate commitment to the new hire

  • Extend this stage until employee’s first year anniversary


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The Return on Investment Specific to the Role

Consider:

How do you measure your ROI?

$ Cost Avoidance

$Cost Reduction

$Increased Revenues


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1. Streamlined Cost and Time Efficiencies Specific to the Role

Large variable costs associated with implementing onboarding & orientation programs

  • Cost of time spent by recruiters and hiring managers “selling” the company, the vision and future opportunity to candidates

  • Cost of time spent by trainers and managers to be involved in the programs preparing and transferring knowledge

  • Cost of travel, accommodation and meals when new employees meet centrally to engage in this program


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2. Maximized new employee performance Specific to the Role

  • Increase quality and effectiveness of the process

  • Accelerate an employee’s learning curve

  • Reduce the number of days it takes them to become “productive” to equal an average tenured employee


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  • For example: Specific to the Role

  • 120The traditional number days to reach the average performer level:

  • - 105Less ‘new’ number of days to reach the average performer level

  • --------------------------------------------------------

  • = 15 Equals number of days ‘saved’

  • (productivity improvement in days)

  • $150The average cost of employee for one day(based on $40K/yr)

  • x 15multiplied by the number of saved days

  • ----------------------------------------------------------

  • = $2,250

  • $1,000Less employee onboarding costs

  • ----------------------------------------------------------

  • = $1,250

  • Equals the ROI (125%)


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3. Reduced Turnover Specific to the Role

  • Design the process to address the needs, concerns and interests of your new top performers

  • Bring on new employees in a positive way and keep them happy and motivated

  • Internally market and promote company

  • Replacing employees is costly

(Based on $40K per year)


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Conclusions Specific to the Role

A comprehensive, extended onboarding process is essential to ensuring your new hires become effective – faster.

Recognize the distinction between Onboarding and Orientation.


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Stage One – The Pre-Offer: Make first impressions count Specific to the Role

  • Provide positive information about the company

  • The results will carry on further into the candidate’s time with your organization

    Stage Two – Extending the Offer

  • Issue a comprehensive onboarding pre-employment package containing all relevant contracts

  • Slowly introduce the new employee to their daily working life


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Stage Three – The First Day: Capitalize on a new employee’s enthusiasm.

  • Maintain the new employee’s energy by making their first day as positive as possible

  • Be attentive to their needs and do not overwhelm them


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Stage Four – The Orientation Program employee’s enthusiasm.

  • Break into two intensive modules

    • Organization – Everyone

    • Elements of the Job – Specific to the Role

  • Highlight all aspects of your company and allow the new employee to walk away with a complete understanding of all company initiatives and responsibilities

  • Include a Tour that includes organizational and role specific modules


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Stage Five – Post-Orientation employee’s enthusiasm.

  • The evaluation stage when the orientation program is completed

  • Assess your new employees and identify areas for further learning

  • Increases the likelihood of information retention

    Ensure a system is in place to measure your ROI.

  • Identify your reduced costs and increase productivity


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Maximize the use of technology employee’s enthusiasm.

  • Utilize communication tools and audio-visual solutions to help the employee interact with your company’s key people

  • Consistent, across-the-board training


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Summary & Wrap-up employee’s enthusiasm.

Goals of an effective Onboarding process

  • Engage new employees in a reinvented process called onboarding

  • Engage new employees in comprehensive orientation programs

  • Measure value to the organization in terms of:

    • Reduced costs

    • Faster productivity

    • Return on salary costs

    • Increased employee retention


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Q&A employee’s enthusiasm.

Michael Moretti

Sr. Staffing Analyst

HR.com

mmoretti@hr.com