The Onboarding Problem

Research shows positive links between proper new hire onboarding (NHO) and lower employee turnover. There are also positive links to higher employee engagement. These two measures indicate potential gains through proper implementation of NHO programs, likely resulting in a much more solid bottom line. Unfortunately, research also shows that most organizations do not take NHO seriously. Many firms have not done a proper cost-benefit analysis and most do not engage upper management in NHO programs.

The research

Each organization has its own version of NHO, whether just a paperwork-signing event or a formal, complex, long-term program. Some programs include technical skills training required for the new job, while others focus on culture building, including mission, values, and firm goals. Studies show that most NHO programs fail to meet the needs of both the organization and the new employee. Researchers have tried to point out the various problems with NHO programs. For this post, I will focus on three of those issues and provide suggestions below.

• Socialization. NHO may be looked at as an entrance into the culture of an organization. Socialization and being part of the in-group may be considered part of the culture, but socialization is an internal process that happens within the individual. Onboarding is a singular event, whether informal or formalized. Socialization is a long-term process.

• Top leadership support. One of the biggest obstacles to successful onboarding is the lack of top leadership support. Organizations often look at NHO as an expense in both time and resources, offering a short-term outlook on a necessary function, and a vital responsibility of top management.

• Program design. From the above, it is clear that good NHO program design should lead to strong organizational and individual outcomes. Unfortunately, research indicates most organizations are not creating good NHO programs. Supervisors need skills to be taught, but often do not know what is taught in NHO programs. Participants are often provided with more than they can assimilate.

Three suggestions

• Socialization. NHO programs happen when an employee is under intense stress. An individual’s attempts to assimilate leaves them open to organizational influences. Providing a buddy system for feedback, questions, and general assurances fosters a sense of belonging. Developing a true mentoring system that is thoughtfully designed and not arbitrarily assigned, has shown to increase employee engagement. Mentors should be well trained and should be assigned before the new employee arrives.

• Top leadership support. One of the best ways to gain upper-level support for NHO programs is to model employee turnover rates in terms of negative impact on organizational financial goals. Effective assimilation of new employees has been shown to lead to higher job satisfaction, organizational commitment, employee retention, and job productivity, all contributing to positive bottom-line results. Ineffective NHO programs have proven to lead to the exact opposite. Top-level managers should contribute to the overall design of NHO programs and should make time to participate, even in limited ways, in the delivery of program events. Upper-level managers should also communicate clearly the need for lower-level managers to participate in NHO programs as part of their job function and responsibilities. Each person contributes to the success of the organization and its attainment of financial goals.

• Program design. For NHO success, programs need to fit into a culture of learning and growth mindset. Newly hired employees are at their most vulnerable to an organization’s influence. Early learning engagement requires a clear path to continued development. All stakeholders, including supervisors and recruits, need to provide feedback in the development of appropriate NHO programs. One size does not fit all, but organizations need to find efficient ways to deliver NHO programs that fit both the organization’s needs and the new individual’s needs. The goal is to put the new recruit in a position to succeed, thereby allowing the organization to succeed.

Conclusion

Attendance in NHO programs affects socialization and aids in building employee commitment to an organization, improving competitive advantage. Although NHOs allow an organization to pass on knowledge and build skills, it is also an opportunity to build relationships between the organization and the employee. Building relationships with new employees improves employee attitudes, which is shown to increase revenue. Building support from top-level management can have a positive effect on the success of NHO programs. Top-level management should be shown the cost benefits, both short-term and long-term. Successful NHO programs must be designed well with the interests of all stakeholders in mind.