Induction.pdf

Issue Overview: On-Boarding’s Impact on Productivity and Retention In an increasingly competitive marketplace and environment of continual skill shortages, companies will continue to face the following key challenges in the global economy:1

• Recruiting and retaining skilled employees

• Leveraging employees so they are able to quickly contribute to the success of the

organization

Companies must respond to these challenges with innovative recruitment, retention, and development programs. Employee on-boarding can be a key link between a new employee and these programs. It is an opportunity to validate their decision to join the organization and pave the way for a productive satisfying relationship.2

While management and HR professionals are quickly beginning to realize the monumental impact, whether positive or negative, that on-boarding has on new hires, many have been slow to invest the necessary time, energy, and resources required for effective on-boarding programs.3,4 Companies cannot afford to make anything less than a good, positive first impression on new hires. As noted by one interviewed individual in this research brief, “Our new employee is probably at their happiest when they come in the door, and we should be capitalizing on that and making them feel better about their decision, not having them think, ‘Should I have had my business cards here?’ So we are missing an opportunity to engage that employee, and of course, engagement is the start of retention.”

—Interviewed Individual

Considering the importance of on-boarding programs, this brief examines programs and innovative tactics utilized by organizations to welcome and integrate new hires into the company.

Fact Brief

Models and Methodologies for On-Boarding Programs

Key Questions What are the reasons for investing in an on-boarding program? What philosophy and program components do companies utilize to effectively bring in and integrate new hires? How do companies evaluate the success of on-boarding programs and conduct program revisions?

w w w . c o r p o r a t e l e a d e r s h i p c o u n c i l . c o m

CORPORATE LEADERSHIP COUNCIL October 2003

Table of Contents

Executive Summary 2 Program Goals and 3 Ownership Program Components 8 Evaluation and Revision 17 Research Methodology 20 Appendix A: Program 21 Components at Profiled Companies Appendix B: Company B 22 New Employee Resource Guide—Manager Booklet

This project was researched and written to fulfill the specific research request of a single member of the Corporate Leadership Council and as a result may not satisfy the information needs of other members. In its short-answer research, the Corporate Leadership Council refrains from endorsing or recommending a particular product, service or program in any respect. Sources are contacted at random within the parameters set by the requesting member, and the resulting sample is rarely of statistically significant size. That said, it is the goal of the Corporate Leadership Council to provide a balanced review of the study topic within the parameters of this project. The Corporate Leadership Council encourages members who have additional questions about this topic to assign short-answer research projects of their own design.

Catalog No.: CLC114QWQ1

2003 Corporate Executive Board

Definitions of Terms Induction—in-processing, form-filling, policy-explaining activity; benefits and compensation overview; health and safety instruction Orientation—program designed to provide new employees with complete and uniform information about the company, its organization, mission, and function; usually done on day one On-boarding—long-term process of bringing new employees into the company; making sure they know what is expected of them and how to add value; more about ‘staying’ than ‘beginning’

Profiled Institution Industry Employees Revenues

A Media/Publishing 10,000 – 20,000 $2 billion - $10 billion

B Retail More than 50,000 $10 billion - $20 billion

C Telecommunications More than 50,000 More than $20 billion

D Electronics 20,000 – 50,000 $2 billion - $10 billion

E Health Care/ Pharmaceuticals

10,000 – 20,000 Less than $2 billion

F Financial Services More than 50,000 $10 billion - $20 billion

Models and Methodologies for On-Boarding Programs PAGE 2 October 2003


EXECUTIVE SUMMARY This brief discusses on-boarding models and methodologies at six organizations. The following pages provide in-depth detail regarding the business case, philosophy, components, evaluation, and revisions of on-boarding programs.

Program Goals and Ownership

Program

Components

Evaluation and Revision

BUSINESS CASE

Profiled companies target the following reasons for creating an effective on-boarding process:

Retention of employees Communication of values and

vision Consistency of information,

message, and experience Increased productivity of new hire Welcome and integration

PROGRAM PHILOSOPHY

A common theme in the philosophies of profiled organizations is the alignment of on-boarding programs with business goals and objectives.

KEY STAKEHOLDERS Identifying key stakeholders, gaining their buy-in, and utilizing buy-in is crucial in effectively implementing and sustaining on-boarding initiatives.

OWNERSHIP Ownership of the overall program and its components at profiled organizations is typically influenced by the following elements:

Location of on-boarding activities Employee on-boarding population Use of vendors

OVERVIEW OF PROGRAMS

The company employee population, hiring status, business operations, and unique culture all affect the length and customization of the on-boarding program.

PRE-REPORT INITIATIVES Companies begin on-boarding candidates prior to acceptance and report by utilizing initiatives that not only welcome new hires but also start the process of induction.

INDUCTION AND ORIENTATION While induction is an essential part of on-boarding programs, companies go beyond induction to incorporate elements such as an overview of employees’ roles, to enhance orientation and the overall on-boarding experience. RELATIONSHIP ENHANCEMENT PROGRAMS Some programs on-board new employees through relationships built among new hires and between new hires and their managers and peers.

ONGOING ON-BOARDING On-boarding of new hires continues past orientation, both within business units and at the corporate level, as companies utilize coaching programs, on-boarding specialists, and training and development programs.

EVALUATION OF SUCCESS

Once implemented, an organization may better ensure the effectiveness and long-term success of the on-boarding program by measuring results. Measurement tools include the following:

New employee surveys Session evaluations Trainer and facilitator feedback Formal reviews

PROGRAM REVISIONS

Various factors will require on-boarding programs to be reviewed and revised. The practices of profiled companies vary in administering reviews and revisions. Almost all profiled companies revise programs on an on-going basis as well as through sequential formal reviews.



Business Case Although on-boarding programs have shown great business value, literature cites that on-boarding is often done poorly and companies frequently shortchange this important function of the hiring process. According to a 2000 ASTD study, only seven percent of training budgets are spent on orientation programs.5,6,7

Profiled companies agree that on-boarding is a vital part of new employees becoming integrated into the organization. As a result, interviewees noted several business drivers that make up the business case as discussed below. Business Drivers for On-boarding Programs Interviewed individuals cite various reasons for the creation and continuing enhancement of on-boarding programs, including the link between successful on-boarding and retention. Details regarding the business case are as follows:

Business Driver Company Example

Retention

• Five out of the six profiled companies indicate that

retention is the key driver for on-boarding programs.

• Companies testify that properly conducted on-boarding

reduces turnover for new hires.

Communication of values

and vision

• Company A, Company B, and Company D emphasize the

importance of ensuring that new hires understand company

values and vision. Formal on-boarding is key to ensuring

this understanding.

• The interviewed individual at Company A notes that the

value system drives the business case and

on-boarding instills those values in the employees.

Consistency for legal

requirements and global variation

• Company C stresses the need for employees to receive the

same start and information due to legal issues and a

dispersed labor force.

• In accordance with the fusion of separate businesses to

one entity, though global, Company E’s on-boarding

program targeted consistency of language around

performance, hiring, and other areas.

Increased productivity

• Company A’s business case centers around the

long-held belief that talented people can learn to be

productive and useful in a variety of positions.

• At Company E, the desired outcome is not only for

employees to gain knowledge but also that the program

helps them to be productive faster through that knowledge.

Welcome and integration

• On-boarding at Company C ensures that new hires have a

face to put with the company and a greeting from a real

person rather than a digital screen.

• The interviewed individuals at Company A and Company D

note that on-boarding programs help employees integrate

and become part of the overall organization.

KEY BUSINESS DRIVERS FOR ON-BOARDING PROGRAMS

Retention and communication of values and vision are key drivers of on-boarding programs. Additional business drivers include: Consistency Increased productivity Welcome and integration



Program Components

Retaining Top Talent

“We are keeping an eye on the future and recognizing or anticipating that

as job markets external to the company improve, there will, as with other employers, be a risk of flight of

top talent. And not only flight but being recruited away.”

-Interviewed Individual,

Company A

Table 1: Business Drivers for On-Boarding Programs



Program Philosophy Company Vision for On-boarding New Employees Although defining an on-boarding program’s philosophy is difficult, it is important in creating or revising any program. The figure below highlights the content of profiled companies’ on-boarding philosophy.8

Figure 1: Content of On-Boarding Philosophy

I

Most interviewed individuals detail how the program complements the culture. However, the interviewed individual at Company C asserted that since the culture upholds and fuels the on-boarding process, Company C is better able to capitalize on the understanding and cooperation of management. Company C’s full on-boarding program is outlined in Appendix A on page 21.

Area of Philosophy Company Example

Loyalty and retention

Interviewed individuals at Company A, Company B, and

Company C, respectively, explain the philosophy of loyalty

and retention as follows:

“It is much more about joining an institution than about

doing an immediate task.”

“We want to ensure that new hires are truly brand

ambassadors in that they want to stay with the

company for the long-haul.”

“The goal is retention, which begins the first day that

the new employee is hired.”

Good first impression

Making new employees feel personally welcome is a

central component of the program philosophies at

Company A, Company B, and Company D.

Through immediate connection with coworkers and

the work environment, Company D strives to ensure

that new hires feel personally welcomed.

Personal contact Company A and Company D both stress the

importance of personal contact as part of the culture

and how that makes people feel welcome.

Ensure a good fit and future

At Company A, Company B, and Company F, fitting is

an important value.

Company A selects candidates based on whether or

not they will do well at the company and fit.

Part of Company F’s philosophy is to ensure that the

new hires’ first few weeks are positive and that they

feel like there is a future for them at the company.

Embrace and assimilate

The interviewed individual at Company E defined the

overall program philosophy as follows:

“We aim to embrace and assimilate new employees in

a way that they are productive quickly and they feel a

part of the greater team.”

At Company D, the phrase “get up to speed quickly”

serves as the overall philosophy statement.



Program Components

Tactic: Hewlett-Packard builds a connection to corporate mission as reflected in the following aspects of its on-boarding program philosophy:

Giving new hires the opportunity to connect with other new hires, peers, and senior management

Offering ways for new employees to “feel connected” to the large corporation

Providing new hires with a solid grasp of corporate traditions, values, and culture

Making consultants proficient in communicating to the customer what the company or their business unit is about and what makes the company different from competitors

COMPANY EXAMPLE:

PROGRAM PHILOSOPHY

AT HEWLETT-PACKARD8

Industry: High Tech Revenue (2002): $56,588 (mil.) Employees (2002): 141,000

TRENDS IN PHILOSOPHY CONTENT Similar to a firm’s overall corporate philosophy, interviews reveal that on-boarding philosophies are company-specific. However, profiled companies note similar areas of philosophy which include the following: Loyalty and retention Good first impression Personal contact Ensure a good fit and future Embrace and assimilate



Key Players and Stakeholders Identifying key stakeholders and presenting a solid business case for employee on-boarding initiatives is critical in successfully implementating and sustaining any on-boarding program. Organizations should seek to capitalize on stakeholders’ position of leadership and influence in the company. Outlined below are details regarding the stakeholders whose buy-in was critical to the success of implementing and sustaining on-boarding programs at profiled companies. According to interviewed individuals, there is more support from the top than from the middle. In addition, interviews reveal that convincing senior executives, especially the CEO, was not necessary. However, obtaining the buy-in of other key stakeholders proved to be a more challenging endeavor. Profiled companies note the following stakeholders positions on buy-in for on-boarding initiatives:

Besides those who stand to benefit the greatest and wield the most influence on on-boarding programs, the interviewees identified the following members or groups of their organizations that they also consider to be key players and stakeholders:

TABLE 2: ADDITIONAL KEY PLAYERS AND STAKEHOLDERS • Administrative and data entry workers • Functional experts

• Operations personnel • Volunteer trainers and facilitators

KEY TRENDS OF

BUY-IN Interviews reveal that the buy-in at companies exhibit various trends, including the following: Easy or no buy-in necessary from

CEO and senior management HR is central in buy-in All profiled companies cite heads of

business/managers as key stakeholders

At Company A, obtaining the buy-in from

the top is not necessary as commitment is presumed. CEOs

at Company C and E initiated revision.

Heads of Business/Managers All profiled companies emphasize that buy-in from managers is crucial. Company E receives more support from the top than from the middle.

All Members of the Organization (including new starts)

According to Company C, “It is not really a question of who drives it because really we all do.”

Corporate Education and Training/Universities At Company D, these stakeholders work to design and deliver programs.

Company C and Company E’s universities drive and support programs.

Human Resources HR is a key stakeholder at Company B, C, and F;

executive VPs of HR at Company B and Company D serve as executive sponsors for programs and revisions.

CEO Senior

Management

Figure 1: Buy-in Position of Key Stakeholders



Program Components



Program Ownership

The following section illustrates the ownership of profiled companies’ on-boarding programs. In addition, it includes information regarding employee population of the featured programs. Corporate Ownership Ownership and employee population influence how companies organize on-boarding programs. The following table highlights profiled companies’ program organization.

Table 2: Ownership Company Ownership Employee Population Profiled Program

A Human Resources Managers

All corporate

B Human Resources Development All corporate Modified for executives

C

Corporate University Human Resources Managers (ensure

compliance and implementation)

All employees

Same orientation program for all employees; field employees also receive separate on-boarding.

D Corporate Education

and Training Human Resources

All corporate Past program during a period of extremely high levels of hiring activity

E

Human Resource Assistants

Managers (appear to) Staffing

All corporate Vision for future program

F

Organizational Effectiveness

Managers of On-boarding On-boarding Specialists

All employees



Program Components

TRENDS OF OWNERSHIP Although several variations exist, profiled companies’ on-boarding programs reveal the following trends: Officially owned by Human

Resources but executed by managers

Some companies have separate programs for corporate and field employees.

On-boarding Specialists Within Human Resources at Company F, a group of on-boarding specialists is dedicated solely to on-boarding new hires.

ON-BOARDING SPECIALISTS CASE PROFILE: COMPANY F

Tactic

On-boarding specialists provide new hires with personalized attention and services at Company F. Each specialist manages a case load of 35 to 40 new hires across business units.

Elements Company F’s on-boarding specialists perform the following duties to bring the new hire into the organization: • Contact new employee prior to reporting to work • Receive new hire forms as returned • Take forms on first day • Provide orientation • Serve as main point-of-contact for problems, such as errors with first paycheck or relocation

difficulties • Answer questions on various systems, including performance management process • Continue relationship even after new hire is handed over to their business unit



Program Ownership (continued) Corporate Ownership (continued) Vendor Utilization All profiled companies design, create, and administer current on-boarding programs in-house. However, companies utilize vendors for particular content delivery media. The following table details trends and future vendor utilization:

TABLE 3: TRENDS OF VENDOR UTILIZATION

Current Utilization Future Plans

• All profiled companies utilize vendors for video production and/or editing.

• At Company B, Company C, and Company D, vendors produce multimedia components which encompass CD, PowerPoint, video, and other media.

• Company D utilizes an education and training provider to perform the following:

• Administration of facilitator and trainer process

• Communication with employees • Management of program evaluation • Scheduling

• Company B hopes to utilize a vendor as part of the revision of the program to create a strategy that ensures the consistency of all on-boarding components

• Company C is looking at vendors for products to build and improve the manager-employee relationship. The vendor’s services and/or products will address the core issues of these vital relationships corporate-wide.

TRENDS IN UTILIZING VENDORS All profiled companies currently utilize vendors for video production and/or editing. In addition, interviewed individuals at three of the six profiled companies note that vendors produce multimedia for orientation materials and programs.



Program Components



Overview of Programs

Program Length Literature underscores that on-boarding is not just a half-day or one-day program. Across the corporate landscape, company programs extend to both ends of the spectrum, from no program on the agenda to one that lasts a year from the employee’s date of hire. However, literature also recognizes that the duration of on-boarding differs according to employee job type and accountability or level within the organization.9 The length of on-boarding programs at the profiled companies is as follows:

• Company A—90 Days

• Company B—6 Months

• Company C—90 Days

• Company D—12 Months

• Company E—12 Months

• Company F—1 Month (average)

Whether on-boarding lasts for days, weeks, or months, profiled companies deposit the components of on-boarding programs into a set of phases, which correspond to particular time frames. With the exception of pre-report activities, profiled companies segment these phases into 30-day or monthly increments.

Program Customization The varying degrees to which profiled companies incorporate components reflects the diversity and customized nature of on-boarding programs.10 In addition, the length depends on the extent of activity from the corporate level. However, interviews reveal that profiled companies exhibit several trends for the on-boarding process. The concentration of corporate time, energy, and resources is highest during the employees’ first couple of days. All profiled companies deliver induction and orientation from the corporate level. Additional on-boarding components may or may not be administered from corporate. Interviews reveal that at the corporate level, companies do not have a pulse of the activities of individual business units in regard to on-boarding new hires. Thus, many organizations’ business units conduct decentralized program components to support the on-boarding of new hires. One-on-one sessions with managers and buddy or peer coach program components encounter the most flexibility when determining who should initiate the program components—corporate versus business units. The following sections highlight key components of an on-boarding program, which are segmented into the following categories: pre-report initiatives, induction and orientation, and ongoing on-boarding components.

Program Components

Program Evaluation and Revision


LENGTH OF ON-BOARDING

PROGRAMS On-boarding programs featured in secondary literature as well as those of profiled companies vary drastically in length. Programs range from days to weeks to months.

No one-size-fits-all

“That is the thing about orientations; every single one has to be highly

customized. You can’t just pull something off the shelf.”

-Doris Sims,

Alcatel Talent Development Director and Author of Creative New Employee

Orientation Programs



Pre-Report Initiatives

Pre-Hire Activities Like any other relationship, first impressions greatly impact the employer-employee relationship and loyalty and retention of new hires, which can drastically affect company performance. Published research cites that new employees decide whether they feel at home or not in the first three weeks with the company. Companies must convince candidates that joining the firm will be and was a good decision.11 Realizing the importance of good first impressions with potential new hires, profiled companies are getting a head start through pre-report initiatives. All profiled companies, except Company A and Company C, begin on-boarding during the recruiting process. Tactics for initiating pre-report on-boarding are included below: Tactic #1: Pre-Hire Information Package—On-boarding and induction begins prior to acceptance

PRE-HIRE INFORMATION PACKAGE CASE PROFILE: COMPANY F

Tactic

At Company F, on-boarding starts with the recruiters and how they manage the relationship with the prospective new hire. Before the candidate accepts the job, Company F sends an offer package of detailed information.

Elements

Company F’s pre-hire information package includes the following elements:

• Benefits brochure offering extensive details such as plans, rates, coverage information and policies, and frequently asked questions

• Information regarding site location including directions, dress code, and accommodations

• Instruction letter about what to expect for orientation • Links to company Web sites • Standard information and hard copies of forms to read and sign • Telephone number of HR service center for candidate to call with questions

“We want to ensure that they have the right information to make the decision to join the company. We had to look at the information we were sending out to those individuals.”

-Interviewed Individual, Company F

TRENDS OF PRE-REPORT INITIATIVES Pre-report initiatives demonstrate progressive tactics in on-boarding new hires. Secondary literature and interviews reveal the follow initiatives utilized by companies: Information packages Welcome sites Welcome goodies Calls from managers or fellow

workers

Program Components





Pre-Report Initiatives (continued)

Pre-Report Activities

Tactic #2: Online Welcome Site─Beginning on-boarding and induction prior to report

Tactic #3: “Welcome Goodies”─Pre-arrival introduction of the new hire to the company Company D mails packages to individuals who accept as part of welcoming and providing them with insight into the company that they are about to join. Included in Company D’s package is a CD giving a virtual walking tour of headquarters and a test to enable potential employees to check their learning about the company. In addition, the package includes a binder about living in the city.

“WELCOME” AND “GET ‘EM STARTED” SITE CASE PROFILE: COMPANY E

Tactic

When candidates accept an offer, Company E sends them an e-mail with a link to the Welcome Site. Company E starts to bring the new employee into the organization prior to the first day, initiating the process of retention and reducing the time spent on administrative pieces.

Elements

An overview of the welcome site is as follows:

• Located on the company extranet, new hires use the same password as it is not person-specific

• Emulates the look and feel of the employment Web site • Two areas of the site include:

1. Things to Read—Need to read to make a decision in read-only format (e.g., example of confidentiality agreement, subsets around benefits including medical plan overviews, benefits brochure, life insurance information and rates, disability insurance, etc.)

2. Things to Do—Forms new employees are expected to print out, fill-in, sign, and bring with them on their first day (e.g., tax forms, I-9s, life insurance beneficiary form)

• Challenge: HR assistants do not believe that new employees will print out forms and would prefer hard copies. HR assistants think that online materials also require verbal walk-through.

• Next phase: Enable interactive forms to input information (e.g., W-4s) and include links to product information

• Goal: Prevent orientation from being a “big data dump”

Program Components



Vision Service Plan welcomes new hires by having one of their fellow workers call prior to their arrival. In addition, the company sends a welcome packet including parking suggestions, dress guidelines, on-site café menu, and ATM and bike locker locations.

COMPANY EXAMPLE:

“WELCOME GOODIES” AT VISION SERVICE PLAN 12

Industry: Health Care Services Revenue (2002): $1,860 (mil.) Employees (2002): 2,300



Induction and Orientation

Day One All profiled companies, except Company E, provide corporate day one orientation to new hires. Tactic #1: Day One Orientation [Induction]─New employee adoption into the company family During day one orientation, companies conduct the induction part of on-boarding, which entails the in-processing, form-filling, policy-explaining activity that many think of when they think “orientation.” As described earlier, Company E and F begin induction prior to report in order to more effectively handle administrative pieces. In addition, this allows the companies to spend more time on activities such as explaining company values, mission, and strategy and making the new employee feel like part of the company family.12,13 While induction is a necessary and crucial part of orientation, companies cannot afford to miss the opportunity during the new hires’ first few hours to warmly welcome and proactively engage them as well as communicate and instill the values of the company. It is important for companies to determine what information must be presented on the first day, with an eye toward the long-term success and contribution of the employee to the organization.14,15

Profiled companies include induction as well as other elements as part of orientation as detailed below:

TABLE 4: INDUCTION AND BEYOND—ORIENTATION ELEMENTS

Induction Beyond Induction

• Benefits and compensation overview • Form-filling • Health and safety instruction • In-processing • Policy-explaining • Other administrative pieces

• Activities to meet other new hires • Compliance training or code of

conduct segment • Executive briefings • Extensive explanation of employees’

role (main focus at Company D) • Overview of company history,

milestones, brand, key markets, and strategies

• Various presentations • Viewing of recent company

advertising campaigns

Program Components



Adopting New Employees

“They’re setting the tone for long-term employment. It’s about making orientation more like an adoption process,

making the person feel like part of the family, instead of some boring, mandated

lecture on the first day.”

-Kristen Accipiter, Spokeswoman for the Society of Human

Resource Professionals

TACTICS OF DAY ONE ORIENTATION Profiled companies employ the following tactics as part of day one orientation: Induction New hire activities Overview of company history,

milestones, brand, key markets, and strategies



Induction and Orientation (continued)

Day One (continued) Tactic #2: One-on-one Induction Session and Self-Paced Orientation—Alternative to group sessions Since Company E begins induction prior to report, day one orientation for new employees serves as a continuation of induction online or a wrap-up session. In addition, the company prevents information overload by offering new hires a program that can be scheduled sometime within their first two to three weeks. This approach enables Company E to streamline the induction process while ensuring that new employees absorb specific information about the company at a time and pace that accommodates their schedule and needs. Company E’s day one orientation is highlighted below:

ONE-ON-ONE INDUCTION SESSION AND SELF-PACED ORIENTATION CASE PROFILE: COMPANY E

Tactic

Instead of conducting the traditional group program, Company E delivers day one orientation with one-on-one sessions with HR assistants and a self-paced program.

Elements

An overview of the main two components of day one orientation is as follows: 1. Benefits Orientation Meeting with HR Assistant

• Benefits information • Sign-up online

2. Self-Paced Program (employee schedules within first two to three weeks) • Video—Company history and heritage with cameo of CEO • Online—Overview of company structure, locations, and products • Other topics covered include:

Global versus local information Vision and responsibilities of hiring manager, how employees get their jobs

done Goal: New hires to leave knowing the following:

• Information at a local granular level • What the company does • Where the new employee’s position fits in • Who the company is

Program Components



GOAL OF CORPORATE PROGRAM AT

COMPANY E The goal of Company E’s self-paced program is to ensure that new employees leave knowing the following: Information at a local granular

level What the company does Where the new employee’s position

fits in Who the company is



Relationship Enhancement Programs New Hire Events Companies go beyond orientation to offer corporate activities for new hires during their first few months on the job. The following tactics demonstrate innovative ways to on-board employees at the corporate level. Tactic #1: New Hire Mixers─Opportunities to foster relationships between new hires and for them to help each other adjust

One-on-one Training Tactic #2: One-on-one Sessions with Manager—New hire career pathing to success One-on-one sessions with managers at Company B and Company C occur once a week and cover topics such as:

• Performance assessment/management system • Goals of unit and personal goals of employee for the year

NEW HIRE MIXERS CASE PROFILE: COMPANY E

Tactic

Recognizing the value of personal connections in the workplace, Company E hosts new hire mixers as a means to cultivate networking, build relationships, and exchange information among new employees company-wide.

Elements

The ingredients of these mixers include: • Who—All new hires • What—New hire mixer with food, drinks, and keynote speakers • Where—On-site at headquarters • When—Quarterly (because of small number of new hires) • How—Invited via mass e-mail and follow-up call from HR

Program Components



TACTICS OF RELATIONSHIP

ENHANCEMENT Profiled companies employ the following tactics as part of optional corporate programs: New hire mixers One-on-one training



Relationship Enhancement Programs (continued) One-on-one Training (continued)

Tactic #3: Buddy Programs—On-boarding new hires using their peers

BUDDY/PEER PROGRAM CASE PROFILE: COMPANY F

Tactic

Company F launched its buddy program corporate-wide by assigning buddies to all new hires. Due to mixed results and responses of new hires and business units, the program is currently optional for new hires. Unlike other companies’ programs, Company F monitors these relationships from a corporate level.

Elements

Program structure, effectiveness, and challenges are as follows: Program Structure

• Calls upon buddies to volunteer • Trains buddies • Assigns buddies to new hires (at launch assigned to all) • Monitors relationships

Send out evaluation forms to new hires and those who participate as buddies

Program Effectiveness and Challenges • Mixed results—differing personal preferences in regard to desiring a buddy • Operates at different levels—living on in some businesses as people in some

are more committed than others • Effectiveness—worked in some businesses and not in others

Program Components





Ongoing On-boarding

Coaching and Training

Profiled companies continue to on-board new employees far beyond their first day through ongoing on-boarding tactics.

Tactic #1: Coaching Programs─Integrating and Developing New and “Old” Employees

COACHING PROGRAM CASE PROFILE: COMPANY D

Tactic

Company D exploits its coaching program by not only effectively engaging and on-boarding the new hire but also to involve experienced employees and capitalize on their knowledge, skills, and essential buy-in.

Elements The program illustrates an effective use of this component of the on-boarding process. Details of the program are as follows:

TACTICS FOR ONGOING ON-BOARDING

On-going on-boarding initiatives at profiled organizations include the following: Coaching programs Training and development programs

Program Components



Process Map of Coaching Program

Training Willing

employees given training to be

effective

Coach Assignment

New hires paired with a more experienced

employee based on sufficient common ground for effective

learning

Selection

Experienced and knowledgeable

individuals asked to be coaches

Goals • Facilitate and encourage employees to take

responsibility for personal learning and development

• Involve experienced employees, especially those resistant with new employees coming in and being in the “spotlight”

Program Start • The company encourages employees to

request a coach as soon as they recognize the need or its benefits.

• Some new hires waited six months since they had access to many other people and resources to get connected, including a buddy.

Duration • Some relationships lasted indefinitely. • Minimum time was 12 months. Components • Dedicated program manager—commits time

and effort in instructing coaches and coachees to get desired results from the relationships as well as: Provides encouragement to continue

asking questions and to challenge On-going learning

Manages and fully utilizes all personality types (e.g., introverts and extroverts)

Identifies and addresses personal, performance, cultural, and organizational issues

• Follow-up process—“check-ins” with pairs to see if relationship is strong, if they had questions, and if assistance could be given

• Quarterly Group Pair Sessions—bring coaches and coachees together to talk about relevant topics, such as how to give and receive effective feedback



On-going On-boarding (continued)

Coaching and Training (continued)

Tactic #2: Training and Development Programs—Continued on-boarding and development of interested new hires Companies B, C, and D offer training and development programs that are not mandatory for new hires to attend but are open to them if they so chose. In addition, these programs recur, usually by monthly increments, in order for all employees to participate. Company C administers its four-hour program of business tools online, which includes several live courses, and tracks those who have and have not taken the program. The “SMART process” at Company D includes monthly group sessions with presentations to help employees understand specific in-depth topics relevant to working and living in the organization. In addition, the process consists of one-on-one interviews where employees meet with key people in the unit to learn more about a particular project or topic applicable to the new employee’s role. Tactic #3: New Employee Resource Guide—Involving managers and employees in the on-boarding process

NEW EMPLOYEE RESOURCE GUIDE CASE PROFILE: COMPANY B

Tactic

When the offer letter is extended to candidates, at the same time the recruiting department at Company B mails a “New Employee Resource Guide” to candidates as well as an executive on-boarding binder to executives.

Elements The following information outlines the guide utilized by managers, peers, and new hires and the binder given to executives to facilitate on-going on-boarding. Components and Structure

• Includes three booklets—manager, peer advisor, and employee • Takes the three participants through the first six months of employment • Guides each person through the first four weeks and then through months two to six • Provides detailed step instructions as well as bulleted “to dos” for each phase

Executive On-boarding Binder This binder includes various materials such as:

• Copy of the new employee resource guide • Goal-setting process and how to conduct reviews • Information about benefits • Profiles of all of executives • Information that you the executive would have received verbally had they gone

through orientation (the company does not require executives to go through orientation)

Future Revision: On-boarding process that scales from VP all the way down to administration

Program Philosophy and Components


Program Creation



Evaluation of Success Many companies have seen plenty of return on investment by implementing on-boarding programs that are tied to business drivers. After launching its 40-hour New Team Member Orientation, Neumann Homes, an Illinois-based national homebuilder, observed the following marked business improvements:16

• Turnover reduced to 8 percent from a high of 26 percent • Promotions for 50 of the program’s 200 participants • Overall profitability increase from 9 percent to 11 percent

In addition to measuring return on investment, companies must continually evaluate the effectiveness of program structure, delivery, individual components, and new employee responsiveness and overall satisfaction.

Quantitative and Qualitative Metrics for Measuring Success Measurements tracked by companies include the following:

New Employee Surveys

All profiled companies conduct employee surveys to measure the effectiveness of the on-boarding process. However, the information sought and time at which the surveys are sent to new hires varies. No apparent trends appear among profiled companies in regard to when the surveys are administered. In addition, some companies’ questions focus on the effectiveness of individual components of the program; other companies attempt to gauge the retention of information and overall satisfaction of participants.

Session Evaluations

Company B and D both administer day one orientation smile sheets. At Company D, new hires also fill out evaluations for every session, including business unit sessions.

Mutiple Sources of Continual Feedback

Company D seeks the feedback of instructors and facilitators of the sessions on the spot. In addition, the company evaluates the success of inititives through ongoing feedback from HR and supervisors of new employees.

Formal Reviews

Profiled companies utilize formal reviews to obtain valuable feedback from key players and stakeholders. Included on the next page are further details regarding companies’ formal reviews.

QUANTITATIVE AND QUALITATIVE

METRICS Most profiled companies evaluate program success through the following measurements: New employee surveys Session evaluations Trainer and facilitator feedback Formal reviews

Figure 2: Evaluating Program Success


Program Creation Program Evaluation and Revision

TABLE 5 : QUANTITATIVE AND QUALITATIVE METRICS PRACTICES Quantitative levels include:

• One to Seven Scale (poor to excellent) • Levels One to Five

Qualitative practices include: • Encouraging open and honest

written comments • Asking new hires the following

questions (Company A): Did you feel welcome? Did you have the right

information in a timely manner? Do you know where to go for

help and resources? Have your needs been met? What can we do better?

QUALITATIVE FEEDBACK AT

PROFILED COMPANIES Interviewed individuals supplied the following samples of new hire feedback: “The new employee was pleased to see that the company was concerned with what she wanted to be doing in five years and not just what the company wanted her to be doing today.”

-Interviewed Individual, Company C

“They enjoyed or were curious about different racial and international cultural systems and beliefs and appreciated that the company tried to make people feel comfortable, and understood their culture and ethnicity.” “Most people found the group, one-on-one sessions, and buddy—these immediate opportunities for interaction—very helpful.”

-Interviewed Individual, Company D

“People know the company. They are comfortable with us. We are a very well-respected name on a global basis. So, they expect more than for someone to say, “There is your desk.”

-Interviewed Individual, Company E



Program Revisions

Although companies’ practices vary in terms of reviewing and revising the on-boarding program, all profiled companies, with the exception of Company A, indicate that revisions are ongoing. Interviewed individuals cite the following conditions that prompt immediate changes as well as those that involve review before revisions are made:

Subsequent information outlines the practice of profiled companies in reviewing and revising on-boarding programs.

Informal and Formal Reviews/Revisions of the On-Boarding Program The diagram below further details and charts the schedule and nature of review and revision of on-boarding programs at profiled companies.

TABLE 6: CONDITIONS THAT PROMPT REVISION

Required Conditional

• Changes in senior management (when

featured in program materials) • Drastic changes in corporate

climate/business conditions • Major changes in volume of hiring

• Feedback from employees • Feedback from trainers, facilitators,

and volunteers • Feedback from managers and peer

coaches/mentors



Figure 3: A Timeline of Review/Revision at Profiled Companies

At Company A and Company C, the last revision occurred two years after the prior one. However, at Company A, there is no set schedule for revision. The interviewed individual noted that given the current business conditions and staffing levels, they will not proactively pursue revision unless a need merits it.

A major revision of Company F’s on-boarding program occurred three years ago. The program initially was two days. A year and half later the company reduced it to a one day program as creation of a CD ROM eliminated many redundancies and streamlined the process.

TRENDS OF REVIEWS/REVISIONS While the schedule and nature of reviews/revisions at profiled companies varies, trends include the following: All profiled companies, except

Company A, indicate that revisions are ongoing

Three of the six profiled companies perform formal reviews and revisions every six months

Almost all companies conducted major revisions to programs within the last three years

Quarterly

Two Years

Three Years

Launch/Last Revision

Company D conducts new employee corporate on-boarding and business unit evaluations every week and within each session for continuous process improvement. In addition, the company holds monthly and quarterly meetings with instructors and trainers to review programs, give feedback, and recognize the work of instructors.

Company B, Company C (induction piece), and Company F all conduct formal reviews and revisions every six months.

The goal at Company C was to revise the program yearly. However, since the change in the company’s corporate climate was so drastic, the firm decided to revise it every six months. In the past four years, Company E has reviewed the on-boarding process at least three to four times.

Weekly

Six Months

Yearly

Monthly



Program Revisions (continued) Factors Influencing Program Effectiveness

Interviewed individuals highlight the following ways in which on-boarding is both effective and ineffective:

TABLE 7: EFFECTIVENESS OF ON-BOARDING

Effective Ineffective

• At Company B and Company C, what makes it effective is that it is not just induction.

• Interviewed individuals at Company C and Company D note that having employees be supportive of and highly involved in the program is the greatest asset.

• With Company D’s trainers and facilitators and Company F’s on-boarding specialists, these focused and dedicated groups greatly impact overall effectiveness.

• Interviews with Company B and Company E reveal that sharing the company history and milestones as well as other vital and engaging information gives people what they want and makes the experience memorable.

• Interviewed individuals at Company C and Company D express the impossibility of on-boarding programs not being able to be one-size-fits-all. They note the challenge of not meeting all the needs of participants and stakeholders.

• The majority of interviewed individuals agree that leaving hiring managers and HR responsible for implementing and proactively engaging in on-boarding makes processes ineffective.



Impact of Employee Receptivity on Program Effectiveness

“An employee’s perception of success

depended on his/her receptivity to orientation, classroom or other, new

learning, the whole integration process, and ability to manage/or

adapt to constant organizational and market changes.”

-Interviewed Individual,

Company D



THE RESEARCH PROCESS IN BRIEF

The Corporate Leadership Council conducted a comprehensive search of published materials regarding on-boarding models and methodologies, drawn from trade press journals, other research organizations, and the Internet. Council staff then interviewed professionals at six corporations. These individuals discussed their on-boarding programs. This report represents the findings from these secondary and primary sources.

Business Case for On-Boarding Programs 1) What was the business case for developing an on-boarding program?

2) Who were the key players and stakeholders whose involvement and

buy-in was critical?

Program Ownership and Model 3) For what employee populations do you provide on-boarding and how

are these programs different? 4) Who owns the on-boarding process?

5) What is the overall philosophy of the on-boarding process?

6) How long is the on-boarding process? (i.e., number of months)

7) What are the key components or phases of the on-boarding process?

How are they administered?

8) What, if any, vendors did your organization partner with to design the on-boarding process?

Program Evaluation 9) When and how often is the on-boarding process reviewed and revised?

10) How is the effectiveness of the on-boarding process measured?

(i.e., levels 1-4 evaluation)

11) What were employee reactions and feedback regarding the on-boarding process?

12) What about the process is effective and made it a success? What about

the process is ineffective?

Figure 1: Content of On-Boarding Philosophy Page 4 Figure 2: Evaluating Program Success Page 17 Figure 3: A Timeline of Review/Revision at Profiled Companies Page 18 Table 1: Business Drivers for On-boarding Programs Page 3 Table 2: Program Ownership Page 5 Table 3: Trends of Vendor Utilization Page 7 Table 4: Induction and Beyond—Orientation Elements Page 11 Table 5: Quantitative and Qualitative Metrics Practices Page 17 Table 6: Conditions That Prompt Revision Page 18 Table 7: Effectiveness of On-Boarding Page 19

Research Methodology

Project Aims

Guide to Tables and Figures


APPENDIX A: PROGRAM COMPONENTS AT PROFILED COMPANIES Program Company Component A B C D E F Offer Letter Sent

START New Employee Resource Guide sent from recruiting

START Candidates

interviewed Walking tour

of city Entertained

START Letter sent

via e-mail Accept or

decline electronically

START Package of information, including benefits details

Special Delivery

Accepted Offer Pre-report

New Employee Resource Guide Manager Booklet Call day of

acceptance Scheduled

lunch day one, meeting end of week

Information accessible on Web site

Packet sent with CD

Binder sent about living in the city

Welcome site On extranet Same

password for all new hires

Read and print forms as part of induction

Day One Orientation

START Welcome Induction Overview of

business

Induction Compliance

training Cover brand Milestones History

START “Power of Possibilities” Induction

Two days of classroom Day One: Welcome Executive

talks Overview of

key markets Employees’

role (main) Strategies,

values, etc.

Benefits orientation meeting with HR assistant

Self-paced program with video and online company information

Package of information on firm and forms

Induction Company

values and information

Activity to meet other new hires

Presentations

Business Unit Orientation

Units conduct division-specific orientation

New hire introduced

Scheduled meetings with key business partners

Training previously scheduled by manager

Managers facilitate business unit orientation

Departments conduct different processes

Executive talks

Day Two: Presentations Introductions Getting-to-

know time Facility tour Buddy

assigned “Small

Process”

Site orientation

Divisional orientation

Introduced to key customers and colleagues by manager

Business unit program includes classes scheduled over three to six months.

One-on-one Sessions with Manager

Once a week Topics:

—Goals —Performance assessment —Project updates —Business partner relationships

Once a week Manager—

unit goals; new hire— personal goals for year Discuss

performance management system

Sit down early first day or two on job

Establish list of key people for one-on-one sessions

“Tracks” Managers given information on what they are expected to provide

On-boarding specialist serves as main point of contact, including questions on performance management process

Buddy Program

Not initiated or directed from corporate

Peer advisor acclimates new hire with New Employee Resource Guide Peer Booklet

Not initiated or directed from corporate but done by many groups

“Coaching” Employees

asked to be coaches

Training for coaches

Coaches assigned to new hires

Follow-up and pair group sessions (quarterly)

Manager responsible for buddy system

At launch of program, every new hire assigned a buddy

Mixed results lead to some units having buddies

Buddies volunteer and are trained

Monitor and evaluate

Follow-up/ Evaluation

Follow-up evaluation e-mail after 90 days

Day one orientation smile sheet

New employee one-month survey

Survey 500 random employees hired within last two years

Surveyed employees a year after revision

Day one and business unit orientation evaluation

Instructor and trainer feedback

Monthly meetings of instructors and facilitators

Follow-up at four to six week point

Pull-back exercise to measure retention of information

Six month employee evaluation

New hire evaluations

Formal review every six months


APPENDIX B: COMPANY B NEW EMPLOYEE RESOURCE GUIDE—MANAGER BOOKLET

Title Section

Subheading Sample Scripting and Components

Pre-first Day

Communicate

Something as simple as a two-minute phone call can go a long way toward making an employee feel valued and welcome. Follow these steps:

1. On the day your candidate accepts the job offer, call him or her and express your excitement.

2. Make sure communication continues to be a priority. Schedule time on your calendar now to meet with your new employee on his or her first day in the office. Share the guide. Go out to lunch. Schedule time at the end of the first week to check in with the new employee and prepare him or her for the upcoming week.

3. Announce the arrival to other employees in the department. Set up a meeting. 4. Contact the head of the organization, such as the department vice presidents, to make

sure that they know that the person is starting. Every page has a “to do” that is highlighted in orange which bullets out the four steps.

Get Ready Main paragraph: You’re responsible for making sure your new employee’s work area is set up

before his or her first day on the job. Begin these steps as soon as your new hire is a confirmed employee to ensure that everything is in order on his or her first day.

Sample “To dos” include: Decide where new employee will sit. Clean desk area. Set up desk supplies. Order/set-up computer. Make sure computer has the proper systems/programs. Add new employee to necessary department distribution lists. Get organizational chart and phone list for new employee.

One

Involve Others Main paragraph: Reach out to the rest of the organization to help acclimate your new employee by taking the following steps: Identify peer advisor Review the guide with the peer advisor Schedule meetings with key business partners and necessary training for employee.

First Week Main paragraph: Your employee has attended New Employee Orientation and is ready to start

work—but maybe not. Orientation provides a lot of information about the company, but nothing specific about your department.

“To dos”: Meet with new employee on the first day. Introduce employee to department. Give employee time to set up desk. Ask peer advisor to review basic computer systems with new employee. Give new employee time to review intranet site. Meet with new employee at end of first week.

First Month Main paragraph: You and your employee have covered all the basics. Now it’s time to go a step

further. During the first month, make it a priority to meet one-on-one with your new employee at least once a week. Be sure to cover the following topics: Goals Performance Assessment Training Assessment Project Updates Business partners

“To dos”:

Meet with employee once a week to discuss goals, performance assessment, training assessment, project updates, business partner relationships, and questions.

Schedule a meeting for the employee and senior management of your organization. Check in with peer advisor.

First Three Months Main paragraph: Once your new employee has settled into their new position. The following

areas should be covered in your weekly meeting: Goals Individual Development Plan (IDP) Cross-divisional contacts

“To dos”: Meet with the employee once a week to discuss the above areas.

First Six Months Main paragraph: This phase will help prepare the employee for long-term success at Company B. Discuss the follow topics during your regularly scheduled one-on-one meeting.

“To Dos”: Continue meeting with employee to discuss project updates, goals, aspirations,

development program, and training and development Development Program—Another program part of Company B’s on-boarding. Employees get to step out of the office and into a store where they actually look at their role and how it directly impacts the business and other things that they can change to be more effective to help drive business results.

Invited after 3 months of employment Encouraged to do before 6 months of employment Spend three days working as a sales associate Not mandatory Run 10 programs a year Maximum of about 15 people per program (due to capacity of area stores) Not everyone chooses to go but you could do it anytime during your career

Feedback—Review the on-boarding process and the New Employee Resource Guide— What worked? What didn’t? Ask your new employee and his or her peer advisor for their feedback. Please forward any suggestions to the Human Resource Development group.

Celebrate!—You and your department have spent the last six months building a stronger team—don’t forget to take the time to celebrate your accomplishments.


1 Norm Tollinsky, “Self-service: Employee Orientation,” HR.com (Date Unknown). (Obtained through http://www.hr.com). [Accessed 15 July 2003]. 2 Norm Tollinsky, “Self-service: Employee Orientation.” 3 Sally Saville Hodge, "Duty to Worker Doesn't Stop at 'You're Hired'," Chicago Tribune (9 December 1985). (Obtained through Factiva). 4 Joel Schettler and Heather Johnson, "Welcome to ACME Inc.," Training (August 2002). (Obtained through ProQuest). 5 Leslie McKeown, "Retention: Orientation for Retention," HR.com (Date Unknown). (Obtained through http://www.hr.com). [Accessed 15 July 2003]. 6 Sally Saville Hodge, "Duty to Worker Doesn't Stop at 'You're Hired'” 7 Joel Schettler and Heather Johnson, "Welcome to ACME Inc.” 8 Joel Schettler and Heather Johnson, "Welcome to ACME Inc.” 8 Tania Regis, "Employee Orientation," New Straits Times (21 June 2003). (Obtained through Factiva). 10 Joel Schettler and Heather Johnson, "Welcome to ACME Inc.” 11 Leslie McKeown, "Retention: Orientation for Retention.” 12 Leslie McKeown, "Retention: Orientation for Retention.” 13 Kale Roberts, "Breaking in the Top Dogs," Training (February 2000). (Obtained through ProQuest). 14 Tania Regis, "Employee Orientation.” 15 Mike Elliot, "Orientation Should Be Well-plannned, Pleasant," Augusta Chronicle (8 June 2003). (Obtained through Factiva). 16 Joel Schettler and Heather Johnson, "Welcome to ACME Inc.”

The Corporate Leadership Council has worked to ensure the accuracy of the information it provides to its members. This project relies upon data obtained from many sources, however, and the Council cannot guarantee the accuracy of the information or its analysis in all cases. Further, the Council is not engaged in rendering legal, accounting or other professional services. Its projects should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither Corporate Executive Board nor its programs is responsible for any claims or losses that may arise from any errors or omissions in their reports, whether caused by Corporate Executive Board or its sources.

Professional Services Note

The Corporate Leadership Council welcomes feedback as a vital part of our continuous improvement. If you would like to comment on the quality of this brief—in general, or specifically regarding usefulness—please e-mail [email protected].

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