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PDG Talent and Onboarding white paper

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The document discusses the business case for strategic talent onboarding. It argues that effective onboarding leads to improved business outcomes like faster time to productivity for new hires, higher employee retention rates, and decreased costs from reducing attrition. Specifically, it notes that strategic onboarding that treats the process as ongoing rather than an event and leverages an organization's employment brand can help accelerate productivity, increase retention in the first year, and improve overall business results.

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THE BUSINESS CASE FOR TALENT ONBOARDING 5 KEY SUCCESS FACTORS TO ATTRACTING AND RETAINING TOP TALENT
2 A company is people employees want to know am I being listened to or am I a cog in the wheel? People really need to feel wanted. The way you treat your employees is the way you treat your customers. Richard Branson Employees get about 90 days to prove themselves in new jobs Half of all hourly employees leave their jobs after 4 months Half of senior professional hires fail within 18 months Source: Society for Human Resource Management First impressions really do make a difference. Onboarding is one of the most important processes an employee goes through; it is their introduction to the company, their opportunity to start contributing quickly, and the point at which they decide whether or not they made a good career decision. Onboarding isnt an event; its an ongoing process requiring learning, experience, practice, mentoring, and reinforcement. And onboarding isnt just for new employees. When an existing employee moves to a new role, they need to be onboarded to that role. When an individual contributor moves into a leadership role, they need education and orientation to their new responsibilities. Statistics show that an effective onboarding program leads to improved time to performance, higher employee satisfaction, and improved talent retention. The Business Case for Talent Onboarding 息 Copyright 2016 Performance Development Group LLC
What is Strategic Onboarding? Strategic Onboarding is an approach to Talent Onboarding that addresses the long-term needs of the employee while also addressing the business needs of the organization. It creates a win-win situation, providing value to both the business and the employee. Strategic Onboarding: Increases employee productivity and engagement levels, reducing turnover, and elevating a companys Employment Brand Is a deliberate, consistent process that creates optimal value for a company while providing more value for new hires Benefits employees by giving them the tools they need to succeed and grow into more fulfilling careers Inspires employees and gives them the sense that they are performing meaningful work Goes beyond a traditional orientation process by striving to meet new hire needs throughout the entire first year of employment. Best in Class Strategic Onboarding has one goal in mind: drive business results by optimizing the productivity of an organizations employees. So how does your organization get to Strategic Onboarding? 3 The Business Case for Talent Onboarding 息 Copyright 2016 Performance Development Group LLC 1 2 3 4 5
! The Importance of an Employment Brand Whether you mean to or not, your organization has an Employment Brand. Your Employment Brand is a clear message to employees and potential employees about what your organization values and what the employee experience is like. Often a new employees exposure to the Employment Brand begins long before their first day. Every contact they have with an organization demonstrates the brand. How were they treated in the recruitment process? What have they seen on television or read online about your business? How is the organization welcoming them to the team? Do they know what their first 90 days are likely to look like? Six months? Their first year? Your Employment Brand will have an enormous influence over the talent you attract and the talent you retain. The Employment Brand is typically the embodiment of your organizations culture. Unsurprisingly, Culture is the first of the Five Pillars of Strategic Onboarding. 4 The Business Case for Talent Onboarding Business Results 息 Copyright 2016 Performance Development Group LLC
When an employee is in a new role, there are key components that drive their success. This is true whether they are new to the organization, or a current employee assuming a new job. These Pillars of Strategic Onboarding help define employee success in that critical first year on the job. Culture: As Peter Drucker famously said, Culture eats strategy for breakfast. Drucker meant that an organizations culture is often more of a driver of behavior than their stated strategy is. An employee who doesnt comprehend culture can easily become lost and frustrated. Therefore, orienting new employees to culture is a key requirement of onboarding. Network: Businesses are made up of people, and individual success often requires us to know the right people. New employees often know virtually nobody in the organization; those who have shifted roles may not know anybody in their new discipline. Research indicates that the most successful onboarding initiatives introduce employees to key decision-makers and gatekeepers, provide an opportunity to build a network of peers, and provide formal and informal opportunities for mentoring. Strategy: Strategy is a journey, not a destination. If you expect employees to impact your business goals, you need to align them to your strategy from the very beginning. Immersing employees in strategy is a critical component of onboarding. While Mission, Vision & Values are important, theres much more: What are we trying to accomplish? How do we plan to get there? Where do I fit in? What do you expect me to do? How will I know I am succeeding? Career Support: Getting a job is the first step in a long journey. Succeeding in that job and in your career is a lifelong pursuit. Research indicates that the first year is critical to job success, and the first 90 days even more so. What tools and systems is the organization providing to help employees succeed in their careers? A long-term professional development plan starts on Day 1. Training, performance support, mentoring, networking, and feedback are key tools to growth, but the professional development plan is the roadmap to success. The Business Case for Talent Onboarding The Pillars of Strategic Onboarding 5 息 Copyright 2016 Performance Development Group LLC
Capability Development: An employee gets hired because theyve demonstrated intelligence, resourcefulness, and the basic skills to get the job done. An employee grows and prospers in their job by constantly growing those skills and capabilities, and keeping them current with changes in the market and technology. Employees who fail to grow their capabilities often get left behindor worse, keep your organization from growing. Effective onboarding provides a clear path forward for Capability Development and career growth. While the Five Pillars are important throughout onboarding, the graphic below indicates the phases where they are most critical: The Business Case for Talent Onboarding 6 息 Copyright 2016 Performance Development Group LLC Culture Network Strategy Career Support Capability Development PRE-BOARD ONBOARD POST-BOARD Initiate Up to Day 1 Orient Week 1 Integrate to Excel 90-day Plan to Year 1 Day 1 Day 7 Day 90 Year 1
5 Key Success Factors to Attracting and Retaining Top Talent Talent Onboarding is more than a good idea; its a proven strategy for creating productive employ- ees who grow with the organization. The following 5 success factors demonstrate how Strategic Onboarding leads to enhanced success. Accelerate time to productivity using engagement strategies 89% of new hires say they do not have the optimum level of knowledge and tools necessary to do their jobs. Every day an employee cannot be productive is a day that money is wasted and goals remain unattained. Its also a day where an employee becomes frustrated and may question whether theyve chosen the right employer or even the right industry. Treat onboarding as a process, not an event 90% of the material shared in introductory sessions is usually not reinforced at a later date. Onboarding is often treated as an event that lasts a day or two; even enlightened organizations rarely extend onboarding past the first 90 days. According to research from the Society for Human Resource Management, best-in-class organizations extend onboarding touchpoints from pre-hire to at least the first year of employment, integrated with each employees professional development plan. The Business Case for Talent Onboarding 7 息 Copyright 2016 Performance Development Group LLC 1 2
Leverage your Employment Brand Only 32% of organizations communicate their core values to new employees. Each employee only has one career, and they want to believe theyve made the best decision possible. A committed and engaged employee is more productive, stays longer, and provides more value. Every organization has an Employment Brand, a set of messages that tell employees and potential employees what the company is all about, and what their career is likely to look like. What is your Employment Brand, and how is it integrated into your onboarding? Focus on delivering onboarding at the point-of-need, not all at once 90% of the content is typically delivered so early that the new hire does not have the context required to understand and internalize it in a meaningful way. In many onboarding experiences, hundreds of points of information are jammed into just a few days, and sometimes just a few hours. Rather than feeling energized and prepared, employees often walk out feeling dazed and overwhelmed. Research suggests that it takes about a year to fully onboard an employee, so why do we deliver everything in the first few days? Using multiple learning modalities and performance support methods over the course of the first year is more pragmatic and useful, and puts information closer to the point-of-need. Increase retention in the first year. Companies that leave onboarding to chance experience higher than 50% failure rates when it comes to retaining new talent. Every time an employee leaves your company, it costs you money; in time, lost knowl- edge, lost productivity, and recruiting costs. No organization has 100% retention, but keeping your best talent is a goal that pays big dividends. Even in tough job markets, the best talent has choices; every day, your top people are deciding whether they are in the right company, and whether their career is going in the right direction. A consistent, long-term onboarding process demonstrates commitment and growth, and greatly enhances retention. The Business Case for Talent Onboarding 8 息 Copyright 2016 Performance Development Group LLC 3 4 5
Measuring the ROI of Talent Onboarding The Business Case for Talent Onboarding 9 息 Copyright 2016 Performance Development Group LLC Some think that Onboarding is about making new employees happy. However, effective onboarding has a very real business impact. Faster Time to Productivity Without effective onboarding, it can take a new hire a year to reach 100% productivity. Thats thousands of dollars invested before we get full productivity With effective onboarding, we can reduce that to 3 months, a savings of thousands of dollars per employee. If your organization onboards 50 people per year, your savings could extend in the millions. Improved Productivity and Decreased Talent Acquisition Costs Conservatively, lets say it costs you $1000 in recruiting costs for each new hire. And that each day a job remains open, it costs you $1000 in lost revenue. That means a job that stays open for 20 days costs $20,000 in revenue and at least $1000 in recruiting costs Reducing the attrition rate in a 1000 person organization from 20% to an industry standard rate of 12% saves $80,000 in recruiting costs and saves $1.6 Million in lost revenue. $
PERFORMANCE DEVELOPMENT GROUP 301 Lindenwood Drive Suite 100 Malvern, PA 19355 Phone: (610) 854-4400 Fax: (866) 280-3646 www.performdev.com 息 Performance Development Group LLC 2016. All Rights Reserved. Printed in the U.S.A. This document, including any writing, drawings, notes or verbal representa- tion made or shown in the course of these communications is confidential and proprietary to Performance Development Group LLC. No part of the materials included in this communication should be: a) reproduced; b) published in any form by any means, electronic or mechanical, including photocopying or information storage or retrieval system; or c) disclosed to any third parties, without the express written authorization of Performance Development Group LLC.

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PDG Talent and Onboarding white paper

  • 1. THE BUSINESS CASE FOR TALENT ONBOARDING 5 KEY SUCCESS FACTORS TO ATTRACTING AND RETAINING TOP TALENT
  • 2. 2 A company is people employees want to know am I being listened to or am I a cog in the wheel? People really need to feel wanted. The way you treat your employees is the way you treat your customers. Richard Branson Employees get about 90 days to prove themselves in new jobs Half of all hourly employees leave their jobs after 4 months Half of senior professional hires fail within 18 months Source: Society for Human Resource Management First impressions really do make a difference. Onboarding is one of the most important processes an employee goes through; it is their introduction to the company, their opportunity to start contributing quickly, and the point at which they decide whether or not they made a good career decision. Onboarding isnt an event; its an ongoing process requiring learning, experience, practice, mentoring, and reinforcement. And onboarding isnt just for new employees. When an existing employee moves to a new role, they need to be onboarded to that role. When an individual contributor moves into a leadership role, they need education and orientation to their new responsibilities. Statistics show that an effective onboarding program leads to improved time to performance, higher employee satisfaction, and improved talent retention. The Business Case for Talent Onboarding 息 Copyright 2016 Performance Development Group LLC
  • 3. What is Strategic Onboarding? Strategic Onboarding is an approach to Talent Onboarding that addresses the long-term needs of the employee while also addressing the business needs of the organization. It creates a win-win situation, providing value to both the business and the employee. Strategic Onboarding: Increases employee productivity and engagement levels, reducing turnover, and elevating a companys Employment Brand Is a deliberate, consistent process that creates optimal value for a company while providing more value for new hires Benefits employees by giving them the tools they need to succeed and grow into more fulfilling careers Inspires employees and gives them the sense that they are performing meaningful work Goes beyond a traditional orientation process by striving to meet new hire needs throughout the entire first year of employment. Best in Class Strategic Onboarding has one goal in mind: drive business results by optimizing the productivity of an organizations employees. So how does your organization get to Strategic Onboarding? 3 The Business Case for Talent Onboarding 息 Copyright 2016 Performance Development Group LLC 1 2 3 4 5
  • 4. ! The Importance of an Employment Brand Whether you mean to or not, your organization has an Employment Brand. Your Employment Brand is a clear message to employees and potential employees about what your organization values and what the employee experience is like. Often a new employees exposure to the Employment Brand begins long before their first day. Every contact they have with an organization demonstrates the brand. How were they treated in the recruitment process? What have they seen on television or read online about your business? How is the organization welcoming them to the team? Do they know what their first 90 days are likely to look like? Six months? Their first year? Your Employment Brand will have an enormous influence over the talent you attract and the talent you retain. The Employment Brand is typically the embodiment of your organizations culture. Unsurprisingly, Culture is the first of the Five Pillars of Strategic Onboarding. 4 The Business Case for Talent Onboarding Business Results 息 Copyright 2016 Performance Development Group LLC
  • 5. When an employee is in a new role, there are key components that drive their success. This is true whether they are new to the organization, or a current employee assuming a new job. These Pillars of Strategic Onboarding help define employee success in that critical first year on the job. Culture: As Peter Drucker famously said, Culture eats strategy for breakfast. Drucker meant that an organizations culture is often more of a driver of behavior than their stated strategy is. An employee who doesnt comprehend culture can easily become lost and frustrated. Therefore, orienting new employees to culture is a key requirement of onboarding. Network: Businesses are made up of people, and individual success often requires us to know the right people. New employees often know virtually nobody in the organization; those who have shifted roles may not know anybody in their new discipline. Research indicates that the most successful onboarding initiatives introduce employees to key decision-makers and gatekeepers, provide an opportunity to build a network of peers, and provide formal and informal opportunities for mentoring. Strategy: Strategy is a journey, not a destination. If you expect employees to impact your business goals, you need to align them to your strategy from the very beginning. Immersing employees in strategy is a critical component of onboarding. While Mission, Vision & Values are important, theres much more: What are we trying to accomplish? How do we plan to get there? Where do I fit in? What do you expect me to do? How will I know I am succeeding? Career Support: Getting a job is the first step in a long journey. Succeeding in that job and in your career is a lifelong pursuit. Research indicates that the first year is critical to job success, and the first 90 days even more so. What tools and systems is the organization providing to help employees succeed in their careers? A long-term professional development plan starts on Day 1. Training, performance support, mentoring, networking, and feedback are key tools to growth, but the professional development plan is the roadmap to success. The Business Case for Talent Onboarding The Pillars of Strategic Onboarding 5 息 Copyright 2016 Performance Development Group LLC
  • 6. Capability Development: An employee gets hired because theyve demonstrated intelligence, resourcefulness, and the basic skills to get the job done. An employee grows and prospers in their job by constantly growing those skills and capabilities, and keeping them current with changes in the market and technology. Employees who fail to grow their capabilities often get left behindor worse, keep your organization from growing. Effective onboarding provides a clear path forward for Capability Development and career growth. While the Five Pillars are important throughout onboarding, the graphic below indicates the phases where they are most critical: The Business Case for Talent Onboarding 6 息 Copyright 2016 Performance Development Group LLC Culture Network Strategy Career Support Capability Development PRE-BOARD ONBOARD POST-BOARD Initiate Up to Day 1 Orient Week 1 Integrate to Excel 90-day Plan to Year 1 Day 1 Day 7 Day 90 Year 1
  • 7. 5 Key Success Factors to Attracting and Retaining Top Talent Talent Onboarding is more than a good idea; its a proven strategy for creating productive employ- ees who grow with the organization. The following 5 success factors demonstrate how Strategic Onboarding leads to enhanced success. Accelerate time to productivity using engagement strategies 89% of new hires say they do not have the optimum level of knowledge and tools necessary to do their jobs. Every day an employee cannot be productive is a day that money is wasted and goals remain unattained. Its also a day where an employee becomes frustrated and may question whether theyve chosen the right employer or even the right industry. Treat onboarding as a process, not an event 90% of the material shared in introductory sessions is usually not reinforced at a later date. Onboarding is often treated as an event that lasts a day or two; even enlightened organizations rarely extend onboarding past the first 90 days. According to research from the Society for Human Resource Management, best-in-class organizations extend onboarding touchpoints from pre-hire to at least the first year of employment, integrated with each employees professional development plan. The Business Case for Talent Onboarding 7 息 Copyright 2016 Performance Development Group LLC 1 2
  • 8. Leverage your Employment Brand Only 32% of organizations communicate their core values to new employees. Each employee only has one career, and they want to believe theyve made the best decision possible. A committed and engaged employee is more productive, stays longer, and provides more value. Every organization has an Employment Brand, a set of messages that tell employees and potential employees what the company is all about, and what their career is likely to look like. What is your Employment Brand, and how is it integrated into your onboarding? Focus on delivering onboarding at the point-of-need, not all at once 90% of the content is typically delivered so early that the new hire does not have the context required to understand and internalize it in a meaningful way. In many onboarding experiences, hundreds of points of information are jammed into just a few days, and sometimes just a few hours. Rather than feeling energized and prepared, employees often walk out feeling dazed and overwhelmed. Research suggests that it takes about a year to fully onboard an employee, so why do we deliver everything in the first few days? Using multiple learning modalities and performance support methods over the course of the first year is more pragmatic and useful, and puts information closer to the point-of-need. Increase retention in the first year. Companies that leave onboarding to chance experience higher than 50% failure rates when it comes to retaining new talent. Every time an employee leaves your company, it costs you money; in time, lost knowl- edge, lost productivity, and recruiting costs. No organization has 100% retention, but keeping your best talent is a goal that pays big dividends. Even in tough job markets, the best talent has choices; every day, your top people are deciding whether they are in the right company, and whether their career is going in the right direction. A consistent, long-term onboarding process demonstrates commitment and growth, and greatly enhances retention. The Business Case for Talent Onboarding 8 息 Copyright 2016 Performance Development Group LLC 3 4 5
  • 9. Measuring the ROI of Talent Onboarding The Business Case for Talent Onboarding 9 息 Copyright 2016 Performance Development Group LLC Some think that Onboarding is about making new employees happy. However, effective onboarding has a very real business impact. Faster Time to Productivity Without effective onboarding, it can take a new hire a year to reach 100% productivity. Thats thousands of dollars invested before we get full productivity With effective onboarding, we can reduce that to 3 months, a savings of thousands of dollars per employee. If your organization onboards 50 people per year, your savings could extend in the millions. Improved Productivity and Decreased Talent Acquisition Costs Conservatively, lets say it costs you $1000 in recruiting costs for each new hire. And that each day a job remains open, it costs you $1000 in lost revenue. That means a job that stays open for 20 days costs $20,000 in revenue and at least $1000 in recruiting costs Reducing the attrition rate in a 1000 person organization from 20% to an industry standard rate of 12% saves $80,000 in recruiting costs and saves $1.6 Million in lost revenue. $
  • 10. PERFORMANCE DEVELOPMENT GROUP 301 Lindenwood Drive Suite 100 Malvern, PA 19355 Phone: (610) 854-4400 Fax: (866) 280-3646 www.performdev.com 息 Performance Development Group LLC 2016. All Rights Reserved. Printed in the U.S.A. This document, including any writing, drawings, notes or verbal representa- tion made or shown in the course of these communications is confidential and proprietary to Performance Development Group LLC. No part of the materials included in this communication should be: a) reproduced; b) published in any form by any means, electronic or mechanical, including photocopying or information storage or retrieval system; or c) disclosed to any third parties, without the express written authorization of Performance Development Group LLC.