21st-Century Onboarding
New employees at Sun Microsystems begin their orientation sessions after being hiredwith a computer game. It is part of an attempt to integrate new people, improve the image of the company, get feedback, and start training. Looking over the shoulder of a new employee, one would see the person playing a computer game called “Dawn of
the Shadow Spectors,” battling evil forces that are trying to destroy Sun’s network.
Before Sun changed its orientation program, an employee’s first day at work consisted mostly of filling out paperwork, as in most companies. Some new employees waited 2 weeks to get e-mail, and people who worked remotely sometime waited weeks or months before meeting their managers.
The chief learning officer at Sun said, “We wanted to make a better first impression,” unlike that made on an employee’s first day if the company/manager is not ready and the person just sit there. That can make a bad impression that is lasting. Now at Sun the onboarding starts as soon as a person accepts a job. The new employee logson to the company’s new hire website and learns about the company by playing video games. The person sees a welcome video from the CEO and connects with other employees via social networks. New employees also fill out their W-4s,I-9s(TheW-4 form tells the employer the correct amount of tax to withhold from an employee's paycheck based on the employee's marital status, number of exemptions and dependents and other factors.)(FormW-9(officially, the "Request for Taxpayer Identification Number and Certification") is used in the United States income tax system by a third party who must file an information return with the Internal Revenue Service (IRS).), and other paperwork on the website. Sun, which has about 34,000 employees, believes orientationshould start the moment a person is hired and continue until the person is productive.
A Houston-based company, El Paso Corporation, which employs about 5,000, has a different onboarding process. New hires attend a first-day orientation and then another a month later. During their first week at the company, they get an e-mail with links to everything from ordering business cards to joining the credit union. Before the new
system was instituted, employees sometimes waited to even get a computer. One company official noted that new employees “were here but just sitting around because they didn’t have the tools to work.” Now they have a workspace, computer, and
network access on their first day.
An advertising agency in Fort Lauderdale, Florida, takes yet a different approach. Zimmerman Advertising, which has about 1,000 employees, wants employees to understand the company, so new hires log on and learn from the new hire
website what the company does, its client philosophy, and about its leadership. Then they meet for an hour with the CEO who talks about how he built the company. New hires get a 30-, 60-, and 90-day training checklist that must be completed on time and signed by their supervisor. They also have an opportunity to provide feedback via the
website. Modern onboarding systems help newemployees understand what the company is all about so they are prepared to integrate into it, says Zimmerman’s Vice President of HR.
QU E S T I O N S
1. The case introduces three companies of very different sizes with three different onboarding approaches. What differences do you see in their approaches? What similarities?
2. Are there important ideas missing from all three approaches? If so, what are they?
3. Which approach sounds best to you? Why?
Leadership Leverage
Gunderson Lutheran Health System in La Crosse, Wisconsin, is a health care delivery company that includes a 325-bed hospital, several specialty medical practices, and 41 clinics. In a recent year, they saw 1.4 million outpatient visits. The network has6,834 employees including physicians, medical staff, managers and supervisors, and senior leaders.The ageof their health care managers was a concern when asked whether they had a ready supply of leaders to step in. Upper management felt that growing leaders internally made sense from the standpoint of continuity and cultural fit.
The HR staff researched best practices in talent managementand development. The result was the establishment of a Talent Development Review Group including the top leaders. This group became accountable for developing leaders, making necessary development happen, and overseeing the growth of high-potential (high-po) talent. The
Review Group followed five steps in their process.
1.They spent two yearsbuilding a tiered leadership competency modelthat includedcriteria for executives, directors, and managersto ensure the right mix of KSAs. The tieredmodeldefinedbehaviors and competenciesnecessary to demonstrate excellence ineach role. The competencies were used for behavioral interview questions and for positiondescriptions, and they formed the basis for360-degree feedback
2.The next step was to identify high-potential talent. The Review Group picked candidates for consideration in each of four pools. Poolmembers had to demonstrate willingness to:
• Advance
• Participate in leadership assessment
• Receive feedback and coaching
• Take on development opportunities
• Invest the necessary time
In the five years after the program began, 60 high-po employees at all levels of leadership were identified, assessed, and had their career paths discussed
3.Once high potentialhad been identified and invitedinto a pool, it was time to assess the talent. The high-po took assessment tools to identifystrengths and development needs. Eachcandidate and the Review Group determinedan initial strategy for closing gaps in the candidate’s readiness.
4.A variety of tools were used to develop plans for individual high-pos, including stretch assignments, role expansion, job rotations,coaching, onboarding, continuing education,mentoring, project assignments, and committee
assignments.
5.Tracking progress included setting milestonesand success metrics to make sure candidateswould build the necessary skills. The effect ofthe development activities on performance wasmeasured as well, with feedback from peers,
colleagues, and superiors. The Review Group continues to look at progress annually
While numbers tell a positive story, another big change has been in the culture among the topleaders, who now see talent development as astrategic necessity.
QU E S T I O N S
1. The top managers are very busy people. Why was it necessary to involve them in leadership leverage?
2. The program took 5 years to get to the end point. Is that realistic, or did it take too long? Explain why the timing may vary.
3. Would you let the names of the high-pos out to the rest of the organization? Why or why not?
Building Performance Management through Employee Participation
A process of performance management is develop in companies to better shape how employees execute their job responsibilities and complete their work. Ideally, employees should feel comfortable with this process, believing that the communication occurring between managers and workers facilitates the completion of importantworkplace goals. Unfortunately, many employees become dissatisfied with how their organizations encourage goal-directed behavior, which can result in poor job attitudes, decreased motivation, and reduced effort on the job. These negative factors lead some companies to seek alternative ways to design and implement performance managementsystems so that employees are encouraged to work hard in their jobs.
Jewelers Mutual Insurance Company (JMI) is one such company that has actively improved its performance management approach, and the results have been very encouraging. Employees were initially dissatisfied with the feedback and goal-setting approaches that were being utilized to manage job performance, so company leaders
decided to involve employees in the redesign efforts to create a more viable program that would be satisfactory for all the parties involved. An outside consultant started the process by interviewing top leaders in the company, and focus groups were used to solicit feedback from various other members of the organization. By utilizing a more participative and inclusive approach, the company was able to identify the problems
with the current performance management system and generate greater support for the proposed changes that would ultimately fix these issues.
This case illustrates how important employeeparticipation is in the effective management of human resources, particularly when developing a viable performance management system.
Several key changes were made to the performance management system based on the feedback received from managers and employees. In particular, inconsistencies in the administration of the performance management system, problems with the rating techniques and forms, and various challenges linking pay to performance were specifically targeted as part of the redesign effort. Such reflection and self-assessment prompted a number of specific improvements to management of job performance within the company. Evaluations are now based on narratives, various metrics of accountability, and job goals. Further, feedback is provided to employees on a quarterly basis, compensation is more strongly linked to individual effort, and the performance management system functions in concert with the other elements of human resource management. The changes made to the performance management processes at
JMI Company demonstrate how human resource professionals can work with other staff members to create a system that excites employees and, ultimately, yields greater job performance
QU E S T I O N S
1. Discuss how this case illustrates how greater support for a performance management
system can be developed through employee participation.
2. Identify some of the ways that performance management systems can be improved based on the experiences at JMI.
Pay for Performance Enhances Employee Management at Scripps Health
Scripps Health is a long-standing and prominent nonprofit health-based organization that is based in the greater San Diego area. The organization experienced a severe financial downturn that led to increased employee discontent and turnover, as
well as the exit of the firm’s CEO. In an effort to fix these problems, CEO and President Chris Van Gorder implemented a new strategic plan that was used to enhance how the employees were treated.
The new strategic plan contained several components that encouraged employees to work more effectively in their jobs. For example, administrators were to utilize a more participatory leadership approach to create “buy-in” among staff members, and a natural extension of this approach was the development of a physician leadership cabinet that
improved how personnel interacted with each other, and that strengthened firm coordination through widespread communication. Top managers also focused on improving individual satisfaction and productivity by enhancing work efficiency levels.
A major part of these more streamlined operations stemmed from implementation of a beneficial performance management plan. In particular, this plan outlined how managerial talent would be developed, employees would be recognized for a job
well done, and motivation would be orchestrated through a competitive compensation approach.
Reorganizing the compensation policies of the organization was one of the primary areas targeted for improvement by the firm’s leadership. Part of this redesign process involved periodic reviews of job content, the use of annual appraisals to enhance
communication, and the assessment of experience and education to properly adjust compensation amounts. Further, the organization strives to offer competitive compensation that rests at the 65thpercentile of the relevant labor markets, which positions the firm squarely in the middle between the top and bottom levels of competitive compensation. The company also tests the pay markets twice a
year so that it can remain competitive with regard to compensation. Finally, workers can tap into extra money based on ratings given vis-à-vis the annual performance appraisal sessions; if employees do well on their performance reviews, they can earn as much
5% of their salaries as merit-based compensation
QU E S T I O N S
1. Discuss how this case illustrates how compensation can be used as a method for improving employee satisfaction and motivation.
2. Identify some of the ways that performance based pay systems should be developed basedon the experiences at Scripps Health
Sodexo Incentives
Many employers offer incentives to employees working in different jobs. Often, the incentives are to reward employee performance, both in the short and the long term. But some company incentive plans are viewed negatively by employees, while others are seen as highly positive by employees at all levels.
One firm that has a well-regarded, broad-based incentive plan is Sodexo, a large food and facilities service firm with more than 350,000 employees in 80 countries. Being such a large firm, Sodexohas a variety of clients, including many corporate and governmental entities, hospitals, manufacturing firms, and universities. Thus, the firm’s client services are varied, with many of them being basic ones such as cleaning offices, maintenance of all types of facilities, doing landscaping, and managing other basic and professional activities. In North America, including the United States, Sodexo has almost 125,000 staff members. More than 40,000 of the North American staff members work in health care, including clinics, offices, and hospital sites.
Being such a large firm with employees doing many different types of jobs, a key part of
Sodexo’s organizational and HR cultures involvesengaging its employees in many ways. One aspect is having a widely based employee rewards program containing recognition and incentives. The company’s “Spirit of Sodexo” program focuses on three general-award facets: service, teamwork, and progress. To operate this program, the company has required executives, including the top HR officer, to develop processes for the nomination of employees who make significant contributions, locally and regionally, as well as in business and corporate divisions of the firm
Some of the recognitions and awards provided to employees are interesting. Because the biggest division of workers is in health care locations, a special incentive program called Sodexo CARES has been used for several years for employees who accomplish especially unique results. At one hospital, a small group of dieticians developed a new
system for ordering medication and devices online, something that is not done in most hospitals. These dieticians received recognition and incentive awards for their job-related accomplishments.
Another incentive reward for exceptional efforts went to a female employee who worked
as a food caterer and prepared special meals for a young foreign hospital patient who had difficulty eating typical U.S. foods. The employee home cookedvarious items for that patient when the patient had surgery. Her efforts were increasingly recognized throughout Sodexo, and she received a national incentive award. Both she and her husband attended a national meeting in a different city where she was recognized and became the subject of a short video. She also received a $500 gift card and a lot of publicity.
Numerous other examples exist showing how Sodexo uses employee incentives as part of its culture in many different industry jobs. To learn more about Sodexo and its organizational and HR culture, go to The overall picture of such widely focused incentive recognition effortsillustrates how incentives can significantly influence the motivation and performance of employees
QU E S T I O N S
- Based on the Sodexoexample, discuss the importance of widespread incentives in improvingboth the culture and employee retention efforts in a firm.
- How might having employees receive recognition and incentives at a national level impact the performance of their coworkers and colleagues