Workforce Institue Sponsored Research1
May 2008
What on-boarding factors influence engagement and retention rates of new hires in the hourly workforce?
Research Abstract
As companies look for opportunities to improve their labor productivity and reduce the associated costs of maintaining staffing levels, employee retention has become an increasingly high priority for HR executives. Hourly workforces across industries are prone to extremely high rates of employee turnover. This turnover is typically most chronic during the early phase of employment – it is not unusual for 50% of a company’s frontline employees to leave within 120 days of their hire date. Given the high likelihood for an hourly worker to leave an organization early after they are hired, the initial work activities, experiences, and attitudes of the hourly worker are important determinants of whether they remain with the company.
The purpose of this study is to:
- Identify practices within the on-boarding process that influence new hire engagement and contribute to (or mitigate) early attrition.
- Determine how long the on-boarding process typically lasts for hourly workers
- Gain insight into what on-boarding practices are most effective for hourly workers
On-boarding consists of orienting new employees to their specific job tasks and associated work expectations as well as socializing them into the company’s norms, culture, and team dynamics.
The research effort will take place in two phases; first we’ll identify current on-boarding practices and their effectiveness through a series of one-on-one interviews with new hires and line supervisors at participating client sites. Secondly for participating clients we’ll implement a new hire survey for a large sample of new employees that is administered 30 days after hire. The results of the survey will be analyzed together with payroll data as well as any other employee-specific performance data available to identify what elements of the on-boarding process are predictive of new hire engagement and subsequent risk for early termination.
Phase 1 leads to Phase 2
We are currently seeking research partners for Phase 1 so we can identify current on-boarding practices, understand the length of the on-boarding process for hourly workers, and refine a baseline on-boarding survey that has been used in research with one customer. Multiple client research partners will be included in Phase 1 to ensure that the qualitative results and subsequent new hire surveysare representative of practices across companies and across industries. Participation in Phase 1 will provide clients with insight into field employee (i.e., new entry level workers, supervisors) perceptions of their new hire employee on-boarding practices.
Phase 1 research partners will have the option to participate in Phase 2, a large administration of the revised new hire survey of on-boarding practices for hourly employees. Participation in Phase 2 will enable clients to make broader, more statistically valid statements about the effectiveness of their new hire on-boarding practices and the impact of these practices on retention. The results of the survey will be analyzed together with payroll data and other available employee-specific performance data to identify what elements of the on-boarding process are predictive of new hire engagement and subsequent risk for early termination.
Phase 1 Summary
Phase 1 Project Summary
This summary reflects the project steps required to collect qualitative data via interviews with field employees (i.e., new hires, supervisors) about your current on-boarding practices. This project will result in an executive summary, with recommendations by Industrial/Organizational Psychologists, for your use in modifying your new hire on-boarding processes. The following deliverables are included.
- Summary of your employee responses to new hire survey of on-boarding practices.
- Summary of your supervisor responses to new hire survey of on-boarding practices.
- Summary of multiple customer employee responses to new hire survey of on-boarding practices. (when we’ve collected responses from at least 4 clients)
- Summary of multiple customer supervisor responses to new hire survey of on-boarding practices.(when we’ve collected responses from at least 4 clients)
Description of Phase One Project Steps and Client Commitment Required
1. Project Planning
Meet with project stakeholders to discuss project objectives, steps, and deliverables, define scope of jobs to be included in the project, identify the numbers of employees and sites (locations) that will participate, and clarify operational requirements and constraints. Meeting is likely to last approximately 2 hours and should involve key project owners and customers (e.g., HR, operations leaders).
Outcome: Detailed project plan
Client Time Requirements:
PM: 3 hours to coordinate and attend planning meeting, and review project plan
SMEs: 2 hours from 3 to 5 SMEs to attend planning meeting
2. Interview Planning
Engage specific individuals within client organization to identify a random sample of sites. Arrange interviewing schedules and process with site management to ensure timely and prudent access to employees and supervisors for quality responses in the interviewing.
Outcome: Schedule of sites with contacts and timing at each site.
ClientTime Requirements:
PM: 2 hours to coordinate and attend planning meeting
SMEs: 1 hour from 3 to 5 SMEs to attend planning meeting
3. Interview Execution
Conduct structured interviews with employees and supervisors at client sites per the interview plan
Outcome: At least 50 (with a maximum of 250) employee interviews completed and at least 10 (with a maximum of 50) supervisor interviews completed.
Client Time Requirements:
PM: 1-2 hours
SMEs: 1 hour per site manager to participate
15 minutes per employee and supervisor to be interviewed
4. Tabulation & Executive Summary
Data entry of interview results with content analysis, interpretation, and summarization of qualitative data. Create executive summary for client with key themes identified. Outcome: Client executive summary of study results
Client Time Requirements:
PM: 2 hours to review executive summary and provide feedback
SMEs: 2 hours from 1 to 2 SMEs to review executive summary and provide feedback
5. Client Presentation
Present study results to client.
Outcome: Presentation to and discussion with client about study findings and potential involvement in Phase 2.
Client Time Requirements:
PM: None
SMEs: None
High Level Project Schedule*
The actual schedule will be finalized during the project planning phase and will depend heavily on actual start date and the availability of client resources. For illustration purposes, the estimate below assumes no delays due to resource availability.
Project Step / Outcome / Timeline1. Project Planning / Detailed project plan and scheduling. / 1 week
2. Interview Planning / Work with client contacts to identify site locations and arrange interviewing schedules and process with site management. / 2 weeks
3. Interview Execution / Conduct the interviews with employees and supervisors at sites. / 4 weeks
4. Tabulation & Executive Summary / Data entry of interview results and analysis/interpretation of findings. / 2 weeks
5. Client Presentation / Present study findings to client. / 1 week
*This timeline does not constitute a proposal or agreement to actual start & completion dates; rather, this sample schedule has been developed to provide insight into the project phases and general timelines for completion.