Onboarding a New Empoyee

The world is changing and along with it the hiring process.  Today businesses recognize that there is a cost factor when a new employee is hired.  Words such as attrition, return on employee investment and long term employment are associated with these positions.  Long term career, in the eyes of business, can also be translated into substantial savings if key individuals have to be replaced.  The longer they work the higher the return on the hiring investment.

It has been estimated it can cost as much as $4,000 to recruit, hire, train and develop a new employee.  When you line that up with some other factors, this investment is crucial.  Companies today can’t spend that much over and over again to fill positions.  Companies view the new employee process as a prioritized investment.  A close look at their financial planning reveals a dedicated component itemizing the expenses associated with the hire process.  In other words, what was once considered staffing is now viewed as an operating expense.

Employee turnover has grown to levels where between one and four employees quit in a typical year.  If the vacant position was a key employee it can cost between three and four times that salary to replace him/her.  The risk can last as long as 18 months from the original date of hire.  In fact it usually takes up to 6 months for a new employee to decide to stay or leave the company. 

This should come as a surprise.  An individual earns a degree and, upon graduation, picks up the payment responsibilities for the student loan.  When savings have been exhausted a job, any job, is needed to keep up with the payments.  In other words there may be outside factors that also contribute to the turnover situation.  That is why the phrase “accepted a position while looking for a long term career employment” is often mentioned on resumes.

Onboarding is the process that addresses the company’s risk.  The better the onboarding plan the lower the risk associated with the new employee process.  Onboarding affects everyone in the company, is the driving force behind the hiring process and can improve retention by as much as 25%.  The process is focused on finding a fit for the position, employee development and long term production.      

Onboarding starts with a hard look in the mirror.  Remember that employees feed off the work environment and their coworkers.  If employees are bored and have no idea what their actual job responsibilities are there may be a negative undercurrent in the work place.  Perhaps one of the most recent situations is where the supervisor is untouchable.  The only contact is through posted notes on boards or email.  Some of the best onboarding plans will have poor impact if these problems are not addressed first.    

The onboarding plan begins with a determination of the specific skills that will be needed for the position.  Those three year old job descriptions may need to be edited.  Speak with in line supervisors, coworkers and department heads.  Get a clear specific listing of the skills associated with the position.  This listing will be used to qualify applicants.  It will also be used to determine training and development needs.

Everyone in the line of work, support, administration and training must be involved with the onboard plan.  As you might suspect the plan begins with a series of meetings.  The plan begins with orientation and is scheduled through placement and onto development.  It needs to provide a clear description of initiation, training, today and the future.  Once all personnel are on the same page, and all elements of the plan are set, the plan is put in motion. 

Recruiting takes place listing the specific qualifications needed for the position.  Background notes are taken on skills that will be needed for that individual to advance.  A determination should have taken place during the planning stage if this will be a one, or multiple interview process.  The plan will also identify who will conduct the interviews. 

Before a job offer is given another meeting needs to take place.  The successfully interviewed applicant needs to be introduced to all members involved with the onboarding plan.  This is a paper interview.  The individual is represented to them by resume, and any notes taken during interviews.  After the onboarding team makes a joint hiring decision the job offer is extended.  This must be a joint decision.  The entire team must take part, and needs to have a voice in the process.   

If the applicant accepts, a schedule is placed in motion.  Be ready for that individual the first day he/she reports for work.  Do not make the mistake of having them sit in the break room while badges are being coordinated and computer logins generated.  The first day begins with an orientation.  The new employee will begin forming an impression that will affect his/her decision to remain with the company.  Too many companies treat the first day extremely casual.  They have too much open time while people are coordinating with each other.  This can translate as “one hand has no idea what the other is doing” opinion to the new employee.  Be ready on day one and don’t let that happen. 

Orientation serves many purposes.  The company is introduced historically and future plans for company expansion or growth identified.  A detailed tour of the facility should be given with time taken to introduce management/supervisory personnel.  Community areas are identified such as break rooms, rest rooms, any computers that may be set up for shared personal use, parking areas and lockers etc. 

The orientation continues with computer logins if necessary, badges being passed out and training on basic company policies/procedures.  Orientation is also the time where human resource personnel gather their information for payroll, employee files, emergency contact information and other data. 

Keep the orientation light and focused.  Allow the new employee an opportunity to mingle with coworkers when they are on break or during lunch.  If coworkers were informed they can do their part by making the new employee feel welcome.  The goal of orientation is to get all the required human resource paperwork done, provide the individual with a detailed history of the company, introduce coworkers/supervisors/management personnel and project the image that the employee will be joining a team. 

Once the orientation is complete the onboarding plan moves into the training stage.  Training should have been planned out in detail ahead of time.  Make sure that training takes the new hire through all the details associated with their position.  Training should also include instructions on support.  New employees have to know their structure and where to go for additional help, advanced decisions and or more direction.

Based on the position, another time period of working with a coworker might be helpful.  This is kind of a mix between continued on-job- training and coaching.  Keep in mind that training must have a unit of measure.  An individual who fails to pass or meet the expectations of training for the position should not be placed in the production environment without close supervision. 

Units of measure during training might include testing, proven proficiency or any other method of demonstrated knowledge.  Remember, just because a person sits through a class it may not translate into learned material.  Use the measures to determine if training was adequate, current and useful.  These are the same measures that would indicate that the training materials have to be updated, enhanced or modified.

The last area of training should include a snap shot of promotion potential.  Training should never leave the new employee with the opinion there is a ceiling in terms of advancement.  Be sure the new employee has a full understanding of the path and incentives available based on his/her production. 

Finally with the new employee settling into the work force you need to continue the plan.  Skills that would be needed for advancement should be scheduled to be given when needed.  Any additional study the individual can do on his/her own should be identified.  If there are funds available for night classes centered on skills needed they should be made available.  Use this time to share information with the new employee on how he/she can position themselves for advancement.    

The last area of the onboarding plan involves periodic meetings.  They do not have to be formal scheduled meetings.  Just make it a point to check in and see how things are going.  The new employee must feel welcome and supported through the first full year, at a minimum, on the job.  The normal management process will involve reviews.  Do not use them as onboarding periodic meetings.  Management reviews cover the job, the individual’s performance and the work environment.  Onboarding meetings are more concerned on retention and advancement. 

The key to onboarding is a continued contact/support process that takes a new employee through the first year of employment.  The closer you come to a fit through interviews and training the more chances of long term employment.  The more feedback the individual gets the higher the retention rate.  Just be sure that feedback is positive. 

Finally, set a time each year where the entire onboarding plan will be reviewed.  The return on new hire investment depends on a high quality, very thorough onboarding plan.  Do not be afraid to fine tune the plan as needed, or modify the plan for different positions as necessary.