"Onboarding" is the Wrong Word

The most misused term in business might be “Onboarding.” All-to-frequently companies interpret onboarding as “new hire orientation”, the one-day HR-led meeting where new employees get their laptops, log into a few systems, learn about benefits and policies, and sign needed documentation. Beyond that, little takes place. As a result, just 1 in 8 employees feel that their organization provides a good onboarding experience beyond new hire orientation (Gallup study), resulting in a turnover rate of up to 20% in the first 45 days (SHRM.org).

Less frequently, some organizations have built out more robust programs that include formal training on functional tasks, buddy/mentor programs, and regularly scheduled one-on-ones with the manager to determine their level of proficiency. Yet, even these more formal programs tend to lack targeted outcomes that can be measured for impact and engagement. A Kronos study found that 55% of organizations don’t measure onboarding effectiveness. They state, “Orientation is not onboarding: organizations place too much emphasis on hew hire paperwork, not enough on their long-term success.”

"Orientation is not onboarding: organizations place too much emphasis on hew hire paperwork, not enough on their long-term success." - Kronos

?The Need for a Meaningful Solution

At Wiseman Strategies, we believe that the obscurity of “onboarding” has created a disconnect between employer and employee, beginning on day one. To understand the best solution for your company, you first need to understand what you’re measuring.

We believe that Turnover and Retention are not two sides of the same statistic, but instead represent two high-level phases of the employee lifecycle and there is a cost associated with each.

• Turnover is the phase between when a new employee is hired into their position and they are a fully productive and profitable member of the team (generally up to 90 days). The cost of losing an employee during this phase is up to 65% of their annual salary (Businesswire).
• Retention is the phase that begins after an employee is a fully productive member of the team. Losing an employee during this phase can cost your company up to 213% of the employee's annual salary if they are a tenured and highly contributing member of the organization, such as an executive (American Progress).

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It’s Time to Integrate, not Onboard

A strong Integration program begins with hiring the right person for the right job. Leaning into people data to understand job fit can ensure an immediate connection between an employee and their work. As a certified partner with the Predictive Index we work with clients to help create meaningful job targets that can be leveraged in the integration process. As new employees join the team, behavioral results are compared with the job target to better understand how well the employee meets the demands of the role, providing managers with the needed insights to help them align the employee’s work style with what the job is asking of them.

Once the candidate is through NHO, having a formal program in place that connects the employee to their work, with their manager, the team, and the organization is critical to ensuring long-term engagement. Consider the following when developing a program:

• Formal Training. Having a training program in place allows you to measure a new hire’s “speed to competency”, resulting in a quantifiable impact on profitability.
• Manager / Employee Relationships. Think beyond getting to know an individual on a personal level and develop a leadership relationship that meets the employee where they are. You can’t do this without understanding how the employee prefers to communicate, how they make decisions, and how they manage conflict. That’s where people data comes in.
• Team Dynamics. We have to value the differences new hires bring to the team and how those may contribute to team success. Then leverage those strengths to balance out the team, as a whole.
• Company Culture. Nearly 2/3 of survey respondents say the top purpose of onboarding is to the organization’s culture, yet culture integration has been found to have the least impact on engagement within the first 90 days. Integration into company culture should come as a result of an employee knowing how their role impacts the success of the company and alignment of their own work values with the team. ?

When strong Integration programs are in place organizations have the ability to increase engagement and reduce turnover by 82%. If you want to learn more about how we help companies create great programs, message me here on LinkedIn or email me at [email protected]

?To learn more about Wiseman Strategies, visit our site at https://www.wisemanstrategies.com.