The Essential Employee Onboarding Process for Employee Retention

“First impressions are lasting impressions.” That’s something my English professor told me the last day of my senior year. It’s kicked around my head for the last 15 years, popping up at every interview and new job. I was getting a first impression of the prospective employer as much as they were of me.

A study of 264 new employees published in the Academy of Management Journal found that the first 90 days of employment (often called the probationary period) is pivotal to building rapport with the company, management and coworkers. When support levels were high from the team and leaders, new hires often had more positive attitudes about their job and worked harder. YEC

Think about the last time you met someone; what stood out in your mind? Do you recall the good as well as the bad, or were the negative items resounding too loudly to focus on anything else?

That’s the same kind of impression that builds for new employees. Their first impression with a new employer has a momentous impact on how they feel, and perform, in their new role. This was confirmed by a study from the Boston Consulting Group which listed the employee onboarding process as having the second highest impact on employee retention.

Given the importance of educating talented employees, and providing them with everything they need to succeed, you would expect most companies to have a solid onboarding process in place.

Yet, according to an Allied Workforce study, roughly one third of companies have no budget for an employee onboarding process.

Do the math on that:

Some 35% of companies have decided to spend zero dollars on employee onboarding. Despite the average cost of employee acquisition being $11k, no money is spent in onboarding to make them a more productive employee.

That can lead to a 60% churn rate of the entire workforce for the average company.

Doesn’t make much sense, right?

It stands to reason that the cost of not developing a strong employee onboarding process is greater than the cost of implementation. Especially when you consider the benefits.

How an Employee Onboarding Process Benefits Your Company

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CREDIT: Getty Images

Most employees start off at a new job with a lot of mixed emotions; excitement, nervousness, eagerness, happiness.

It’s a bit like that first day of school.

Having a strong employee onboarding process is how you help new hires focus those emotions, and keep other emotions like frustration, anger and disappointment from creeping in. It leads to benefits like:

1. Retaining The Best Talent

retaining employee talent

A talented employee is generally aware of their skill level, and they know what they bring to the table. Some 60% of HR professionals have seen the writing on the wall, and they know that we’re entering a time where companies are competing to steal the top talent in their respective industries.

Matching (or beating) perks and salary can get an employee in the door, but it takes more intangible things to keep top talent – like developing a good rapport among the team and a thriving culture in the company. The best onboarding process helps to create a strong, connect culture around those intangible elements, and can improve new hire retention by 82%.

Without it, those employees are far more likely to take their talent elsewhere.

2. Boosting Employee Engagement

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Culture plays a big role in retaining talent, but engagement is also crucial to retention. According to Gallup’s State of the American Workplace study, employee engagement is the number one factor for improving retention.

The key is to spark that engagement as soon as an employee joins a company through onboarding. It shows that you’re willing to invest in the employee.

They recognize that and are more willing to return that investment.

3. A good employee onboarding process boosts productivity

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It stands to reason that if you spend more time setting up a new employee for success with training, onboarding processes, resource acclimation and engagement, that they can do their job better. They are:

Studies show that employees who complete an employee onboarding process have greatly increased productivity – as much as 70% higher.

4. Stronger Trust and Employee Alignment

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Ideally, employees align with your company vision and goals so they walk the same path and are driven by the same things you are. The best employee onboarding programs educate and inform your new employees, and introduce them to the organizational structure of your company.

When your leadership team is involved in onboarding, it helps to create a better alignment as they learn more about their employer and those who are steering the ship.

The Best Practices for Your Employee Onboarding Process

While first impressions may be lasting impressions, good onboarding goes well beyond that initial handshake. It’s about taking the time to develop a strategy and process that properly seats an employee to ensure better performance, and overall satisfaction in their place at the table.

For the most effective onboarding process, consider these best practices:

1. Get Started Before The Employee Starts

Your onboarding process should begin before the employee sets foot in the building on their first day. That means starting with an agenda that is custom tailored to that specific employee. It should outline their first week, and be developed by the manager who will oversee the employee as well as key co-workers, or mentors, that will help guide the new hire’s success.

Set up their workstation before they arrive

I recall one company that hired me to handle the digital marketing for a new division. On my first day, I arrived to find that I had no office yet so they put me into an open bullpen on a half-empty floor of the building. I also had no chair, no computer, no phone and no supplies.

After leaning against my desk for a few minutes I took it upon myself to hunt down the things I needed, because I had no advocate and the person I was supposed to report to was in the same boat. It still took me 3 months to get an office.

Setting up the space for a new hire gives them their own space. It makes them feel relaxed, confident, and ready to work. Everything they need to start working should be on their desk waiting for them when they start.

Use gifts to make them feel welcome

It doesn’t hurt to include new hire gifts either, such as branded items that make them feel like they’re a part of a team:

This is the approach taken by many larger brands who recognize the importance of good employee onboarding. LinkedIn, Buffer, Netflix and Google all take similar approaches in setting up their new hires for success with welcome packages.

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Start communication early

Lastly, communicate a lot of helpful information before they start to alleviate first-day jitters. This could be contact lists of other employees, maps of other departments, dress code details, where to park, directions to local restaurants, best driving routes to the office, how to check in on the first day, etc.

“If you want people to perform well, you have to get them off to a good start. That’s kind of obvious, isn’t it?” says Dick Grote, performance management consultant and author of How to Be Good at Performance Appraisals.

2. Make the First Week Count

The first week for a new hire is a critical time. They’re meeting a lot of new people, discovering your processes, finding where they fit into existing projects, and assessing how they’re going to move forward. You better believe a new hire is also assessing the ladder and promotional opportunities even in that first week.

Make them comfortable the first week by giving a tour

The first thing you should do is introduce them to their workspace. From there, take them on a tour of the office to meet other employees and identify key resources. Make them comfortable with the placement and layout including the breakroom, closets, bathrooms, mailboxes, supply locations, etc.

“People are very excited and quite vulnerable when they take new jobs, so it’s a time in which you can have a big impact,” says Michael Watkins, author of the bestselling book, The First 90 Days.

Don’t neglect the orientation

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Don’t make the mistake of throwing the employee to the sharks, no matter how desperate you are to get someone started. This is disorienting for a new employee.

“Onboarding time is a function of the job,” says Grote. “The idea of a new employee ‘hitting the ground running’ is a farce. You know what happens if you do that? You fall on your face.”

The first day, and even the first few days of a new job, should be a very calm, easy introduction into an organization. This approach allows new hires to get acclimated. It should be more about orientation and discovering their place among the team than scrambling to get started.

Use daily reviews to build momentum

Most importantly, schedule a daily meeting at the end of each day to review with the new hire and give them an opportunity to ask questions and seek clarification. Continually set expectations by creating an agenda for the nest day. Customize the approach to the next day based on their onboarding progress. This is a great time to start setting up short and long term goals and begin project assignments.

Moving Forward with the Employee Onboarding Process

An effective employee onboarding process doesn’t stop after the first week. A large part of success comes from continued investment and engagement in the new hire. This means your onboarding should include monitoring, training investments, mentorship and feedback opportunities spread over the next 30 to 90 day period.

After the first 90 day period, conduct the first major review with the employee. Be sure not to treat it or approach it like a performance review. While that’s important, this 90 day review should also be used as an evaluation time for your employee onboarding process.

Those kinds of questions can help revealing friction points for new employees. It also takes the emphasis off their performance and makes them feel like their opinion is a valuable part of the company growth. A review will nip weaknesses in the bud, whether it’s an employee weakness or a company weakness.

Do you have an extended onboarding process? What does your onboarding process look like? Share yours with me in the comments below:

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