September 18 - 20, 2014 • San Antonio, Texas
Onboarding: Getting New Hires Up to Speed
Which manager is more likely to hire someone who will produce more value & stay for the long term?
Which employee is more likely to produce more value & stay for the long term?
If you have a great hiring process and attract top performers,
it is a crime to lose them to an unorganized onboarding process.
If you have a loose hiring process, and someone slipped through,
it is a crime to allow them to stay because of an unorganized onboarding process.
Your hiring process should
- Identify candidates with the potential to be great in your organization
Your onboarding process should
- Harness enthusiasm and set up new hire for long term success
ORIENTATION / ONBOARDINGHR paperwork / Socializing people into culture
Tour of office / Org chart with photos and context
Basic job functions / Learning components that fulfill expectations
1 day – 2 weeks / Pre-day 1 – 3 months +
Setting up passwords / Discussing career path
1-2 people accountable / Multiple people accountable company wide
1 size fits all / Customized plan meets new hire where they are
High content, low context / Moderate content, high context
Onboarding is welcoming, orienting and engaging new employees to help them acclimate
to the new environment and become productive members of the team.
Onboarding takes place the moment the new hire has their first interaction with your company until the moment they are fully efficient in their new role.
Grade your current onboarding process (between A+ and F) ______
“Companies that leave onboarding to chance experience failure rates in excess of 50 % when it comes to retaining new talent.”
- Egon Zehnder International, 2007
What does failure look like?
· Great people leaving within the first year
· Keeping non-performers too long
· ______
· ______
How many great people leave before you recoup your investment in hiring them?
· Think of an employee who left within the first year who had the potential to be great.
· How many “Todds” have you lost too soon?
· What does it really cost your organization to lose a good person too soon?
How many non-performers slipped through your hiring process and stayed?
· Think of an employee who stayed long after exhibiting signs that they were not a good fit.
· What does it really cost your organization to keep a non-performer too long?
The REAL Reasons Your People Will Leave
* People will leave their jobs for the following top four reasons:
1. ______
2. ______
3. ______
4. ______
62% of employers plan to increase compensation for their existing employees
32% will offer higher starting salaries for new employees
You must protect your investment in people
with a well-designed onboarding process.
* Based on a 2008 Harris Interactive survey which included more than 3,000 hiring managers and HR professionals in multiple industries and companies of varying size
Business Case for Onboarding: Cost of Keeping Non-Performers Too Long
TOTAL RECRUITING COSTS $ 1,000
KEEPING NON-PERFORMERS TOO LONG: Hard Costs of keeping non-performer 6 months
Monthly salary 6 months X $4,200/ month = $ 25,200
Benefits 6 months X $2,000/ month = $ 12,000
Based on US Dept of Labor’s Bureau of Labor Statistics calculations from 9/04; 29% of worker’s compensation comes from benefits. This example assumes a base salary of $50,000 and commission/ bonus plan designed to generate $100,000 in income in addition to benefits package.)
KEEPING NON-PERFORMERS TOO LONG: Time Costs of keeping non-performer 6 months
Manager time (Avg 2 hrs/ day X 6 mos) 240 hours X $100/ mgt. hour = $ 24,000
Administrative time (Avg 1 hr/ day X 6 mos) 120 hours X $30/ admin hour = $ 3,000
KEEPING NON-PERFORMERS TOO LONG: Lost Opportunity Costs- Sales Example
Avg $ value of expected monthly sales: $100,000 X 6 mos= $600,000 @ 10% margin= $ 60,000
Lost Opportunity/ Lost Customers/ Lost Competitive Edge… estimate PRICELESS
Poor productivity impacting morale estimate PRICELESS
Total cost of keeping non-performer 6 months $ 124,200
Total recruiting cost $ 1,000
Total cost of turnover for six months $ 125,200
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KEEPING NON-PERFORMERS TOO LONG: Hard Costs of keeping non-performer 6 months
Monthly salary 6 months X $______/ month = $ ______
Benefits 6 months X $______/ month = $ ______
KEEPING NON-PERFORMERS TOO LONG: Time Costs of keeping non-performer 6 months
Manager time (Avg 2 hrs/ day X 6 mos) ___ hours X $_____/ mgt. hour = $ ______
Administrative time (Avg 1 hr/ day X 6 mos) ___hours X $_____/ admin hour = $ ______
KEEPING NON-PERFORMERS TOO LONG: Lost Opportunity Costs- Sales Example
Avg $ value of expected monthly sales: $______X 6 mos= $______@ ___ margin= $ ______
Lost Opportunity/ Lost Customers/ Lost Competitive Edge… estimate $ ______
Poor productivity impacting morale estimate $ ______
Total cost of keeping non-performer 6 months $ ______
Total recruiting cost $ ______
Total cost of turnover for one year $ ______
Every month you wait for a non-performer
to start performing, you throw money out the window.
Every month you wait to hire a top performer, you give up
money plus lost revenue plus destroy morale.
Your accounting software
is not capturing this type of data.
Your hiring managers need to know this.
How can you alleviate this pain and minimize these costs?
A formal ______.
Onboarding Basics
There are four basics every Onboarding program must have:
1. Clearly defined portfolio of ______.
2. ______to prepare new hire to fulfill on each expectation.
3. Input from ______relevant to new hire succeeding in their role.
4. Quizzes to test the ______of each learning component.
Where do you have gaps?
______
More than 25% of organizations have no formal practices
for welcoming activities, like celebrating a new hire’s arrival
or facilitating socialization with co-workers.
- Society of Human Resources Managers, 2011
Onboarding Preparation Checklist
Task / Have / Don't HaveADMINISTRATIVE- 5
Organizational chart with photos & description of job
Email template announcing new hire
New hire "care package"
Prepare the receptionist
Get the office ready- desk, phone, computer, passwords
HUMAN RESOURCES- 7
Employee handbook
Policy and procedures manual
New hire paperwork system ready to go
Document career path for employee advancement
Document frequently asked questions
Easy to modify format for future improvement
Survey to deliver at conclusion of onboarding
DIRECT MANAGER- 18
Welcome Aboard letter from direct manager
Clear job description with expectations
Portfolio of expectations- 30-60-90 days
Task list to prepare for new hire day 1
Written agenda for week 1
Written agenda for week 2
Written agenda for week 3
Written objectives for week 4 - 12
End of Day Report format
Culture "Check In" format for conversation
Answers to Frequently Asked Questions
Quizzes to measure progress toward expectations
Demonstration of Appreciation
Demonstration of Acknowledgement
Input from all departments relevant for new hire’s role
Blend of self-directed and instructor led content
Content for training to deliver on portfolio of expectations
Reporting function to track progress or build case
GENERAL MANAGER- 5
Welcome Aboard letter from GM
Company Story/ History- video? In person?
Demonstration of Appreciation
Demonstration of Acknowledgement
This is what gets you a raise/ this is what gets you fired
CULTURE MENTOR- 5
5-10 connection building activities- sense of belonging
Demonstration of Values- statement & examples
List of conversations to have prior to day 1- dress/ lunch
Group of "culture mentors" or "onboarding buddies"
Deliberate experiences designed to communicate culture
Instantly Improve “Day One”
TIME
1. ______before paper.
2. ______them at the door on day 1.
3. ______Call two days before to discuss ______and ______.
4. ______Take temperature end of first day. What can we learn? Get their ______.
5. ______Care package of ______wrapped & on their desk.
6. ______Congratulate new hire at end of first week and ______them in ______.
7. ______Ask several people from around the company to ______a ______note.
A BIT MORE OUTRAGEOUS…
8. ______Invest in a ______and ______to welcome new hire in style.
9. ______Learn their ______of choice in the morning.
Have the greeter waiting with beverage in hand to greet them on day 1.
10. ______Send something ______to their ______.
How long would it take to implement all of these ideas? ______
How much would it cost if you did everything? ______
What could you do in your company? ______
______
______
What is the one action you will have implemented when you get back to your office?
______
______
______
Catching Non-Performers
If a non-performer somehow made it through your hiring process,
it is critical that your onboarding strategy weeds them out quickly.
Focusing on and measuring the ______will not give you access to the LEADING indicators you need to make decisions about when to let ______go.
The key is to track and measure the ______and ______that lead to the results.
Don’t rely on a strategy of ______someone will bring in results, ______and ______their actions.
If the actions are not happening, neither will the results. EVER.
Why is this important?
ü A high-effort employee may outperform low-effort employees by 20%.
ü A strongly engaged employee is 87% less likely to leave a company within the next 12 months.
ü An engaged employee is 88% likely to stay even if offered a 10% raise for a similar job elsewhere.*
* 2012 McLean & Company research
Tips for Weeding Out Non-Performers
o Share performance review format in advance
o Articulate specific examples of excellent, average and poor performance in the role
o ______
o ______
o ______
Setting Expectations & Measuring Progress – STEP ONE
Specific role: ______
Information: What do they need to KNOW?
- Company history
- Client support process
- Expense policies and procedures
- Ideal client profile
- ______
- ______
- ______
- ______
Action: What do they need to DO?
- Strategically analyze an account
- Deliver a station presentation
- Forecast deals in the pipeline
- Upsell and existing client
- ______
- ______
- ______
- ______
Tools: What systems and tools do they need to USE?
- Phone system
- CRM (Customer Relationship Management) software
- Pricing tool
- Intranet site
- ______
- ______
- ______
- ______
Setting Expectations & Measuring Progress – STEP TWO
Delegate step two
Within each of those three categories, there are four considerations, done in this order:
1. WHO will teach them to know, do or use it?
2. HOW will the component be taught?
3. HOW will the knowledge transfer be assessed?
4. WHEN do they need to know, do or use it?
Example: New hire in a sales role
Things to KNOW:
1. Company “elevator pitch”
a. WHO: Sam or Diane, Senior Account Executives
b. HOW: Listen to recordings and study scripts
c. HOW: Deliver pitch live to group at sales meeting for feedback- pass/ no pass
d. WHEN: Day 5
2. Competitive landscape
a. WHO: Rich, Sales Manager and Joan, Sales Support
b. HOW: Discussion and review websites and content in competitor files
c. HOW: Prepare spreadsheet highlighting what competitors offer & do not offer
d. WHEN: Day 4
Things to DO:
1. Make sales calls in territory (weekly target # set by new hire & sales manager together)
a. WHO: Rich, Sales Manager
b. HOW: Daily job shadow 2 hours/ day, 5 different salespeople plus manager
c. HOW: Weekly report generated through CRM listing number of calls
d. WHEN: Beginning day 15, tracking weekly
2. Create & build on new prospect target list
a. WHO: Rich, Sales Manager
b. HOW: Review examples of lists discussing why good or bad prospects
c. HOW: Weekly 30 minute meeting to review
d. WHEN: Due 2pm every Friday beginning week 2
Things to USE:
1. Contact management software
a. WHO: Joan, Sales Support
b. HOW: Video tutorials first then meet with Joan for specific questions
c. HOW: Mock scenarios- how long to input & find info needed
d. WHEN: Day 8
Build the system once, automate it and never worry that something will fall through the cracks ever again.
Know, Do & Use Methodology Source: The Revenue Accelerator®
WHO HOW TAUGHT
WHEN HOW ASSESSED
Next Steps – Action Planning
Grade your current onboarding process (between A+ and F) ______
Onboarding Preparation Checklist score – Have/ Don’t Have ______
Turnover cost ______
ACTION ITEM / OWNER / DEADLINE1
2
3
4
5
Resources
Noll & Associates is an “Emergent Autonomous Collective.” Out of due respect to Monty Python, this term describes our company services quite well. Collectively we are Noll & Associates, a full service Management, Training and Business Development Consultancy. Autonomously, each Principal is a business owner specializing in their area of expertise. From an Emergent perspective, your company is serviced by the Noll Principal that most effectively fits your needs and goals. Noll & Associates operates as an “Agent” of change. You get the exact help you need without wasting time and money “vetting” consultants.
Noll & Associates Principals represent more than 200 years combined media and retail marketing experience and are uniquely qualified to serve the needs of Media Companies, Professional Sports Franchises and other businesses.
Kennen Williams
President, Noll & Associates
415-888-8460
For more than 20 years, Merit Gest has trained companies to grow revenue, increase profitability and reduce turnover. She is an active member of The National Speakers Association, has been featured in Selling Power Magazine, Colorado Biz On-line Magazine and speaks regularly for Vistage International, the world’s largest organization of CEOs. She is a Principal with Noll & Associates, a full service Management, Training and Business Development Consultancy. Each Principal is a business owner specializing in their area of expertise.