For small and medium-sized businesses, employee retention strategies keep key team members growing and thriving at the company. Oftentimes, keeping top performers from moving on to larger firms can be a challenge. Higher pay can help, but many employees are actually willing to forego a pay increase if they feel the job fits their expectations better. These expectations can range from career opportunities to management style. Small and medium-sized business owners need to figure out what their employees expect and create solutions accordingly.
A comprehensive employee retention program can play a vital role in both attracting and retaining key employees, as well as in reducing turnover and its related costs. All of these contribute to an organization’s productivity and overall business performance.
Some of the best research-backed retention strategies include:
- Effective onboarding for new hires
- Fostering a culture of appreciation and recognition
- Providing people manager training
- Providing opportunities for growth
- Conducting stay interviews
- Focus on employee well-being
In today’s article, we dig deeper into how to effectively onboard new hires.
Subsequent articles will take a comprehensive look at the other best practice retention strategies for small and medium-sized businesses.
ONBOARD NEW HIRES EFFECTIVELY
New employee onboarding is the process of helping new hires adjust to the social and performance aspects of their new jobs quickly and smoothly, as well as getting them the tools and information needed to become a productive member of the team.
How much time should you spend onboarding an employee? The answer varies depending on the company and the amount of knowledge a new hire will need to acquire. Some companies have onboarding programs that span multiple years; however, these are usually for very advanced or technical positions. In our experience, most onboarding takes three months to a year to complete.
Why is Onboarding Important?
Onboarding is an organization’s first chance to make a strong and lasting impression on new employees and will convince them that they made the right choice when they accepted their offer of employment.
For small and mid-sized businesses with limited resources, a good onboarding program is a wise investment for 3 reasons:
- It boosts productivity. Studies show that a strong onboarding program can boost new hire productivity by 50%.
Employee productivity is important to any business.
The more productive your employees are, the more successful you’ll be as a business.
- It helps retain more employees. 46% of employee turnover is due to voluntary resignations.
It’s expensive to replace employees and recruit new hires.
- It builds culture. Cultivating a strong culture in your workplace takes time. If you can’t retain employees, building a strong culture will take even longer. With a structured onboarding program, employees are 69% more likely to stay with a company for three years.
Given that these 3 factors have such a strong impact on the financial status of a company, it is critically important to have a structured new hire onboarding program.
How to go about Creating an Onboarding Process?
Studies have shown that effective onboarding is often broken down into 4 stages:
- Before day one,
- Day one – week one,
- Week one – three months, and
- Three months – one year.
Before Day One
Build a plan: Once your offer has been accepted, it’s time to develop an onboarding plan. Consider these questions, when developing your onboarding plan:
- When will onboarding start?
- How long will the onboarding program last?
- What impression do you want new hires to walk away with at the end of the first day?
- What do new employees need to know about the culture and work environment?
- What role will HR play in the process? What about direct managers and co-workers?
- What kind of goals do you want to set for new employees?
- How will you gather feedback on the program and measure its success?
Once these questions have been answered, HR professionals can partner with the business to develop a plan of action that will help new employees quickly assimilate company policies and workflow while getting fully acquainted with the organization’s culture.
Figuring out your approach in advance will lead to an easier and more successful onboarding experience for when your new hire starts.
Lastly, don’t forget to organize their workspace: Ensure a positive first impression by having the necessary equipment ready before your new employee starts work. You can make your new employee feel extra special by adding a personal touch, like a welcome sign or plaque. If they have a locker to store their belongings, hang up a sign to make them feel welcomed.
Day One – Week One
An employee’s first day should be about being welcomed, rather than intensive learning. Use the first day to create a positive foundation for the new hire and bring them into the community.
- Be welcoming: Show how excited you are about working with the new employee and what they have to offer. Whether it’s a company-wide email, a team lunch, a presentation, make sure that your new employees feel welcomed into their new work environment.
- Make introductions: Your new hire probably knows few people at your organization. Meeting their co-workers will ease their nerves and give them resources for when they need help.
- Create an onboarding schedule: Using your onboarding plan from the pre-boarding phase, create a schedule that the employee can follow. Be sure to include key stakeholders and schedule training at reasonable intervals making time in between to cover any questions or allow for small breaks to help improve memory and retention.
What about Onboarding in a Virtual Environment?
While we might not be able to meet in person, video meetings are still an important part of onboarding. New hires need to meet the team, even if it’s through a device. Encourage everyone on the team or department to set up an introductory meeting with your new employee and ask them to share what a typical day might entail to provide a sense of what work life at your company includes. Try to have at least one video meeting a day, so that your new employee feels connected.
Between Week One – Three Months
The first few months are often a learning sprint for new hires. Productivity during this stage should be increasing, but don’t expect them to be at 100% quite yet.
- Spend time reviewing the role: Schedule regular one-on-ones with their manager. Use this time to remind the employee about the key requirements of the role and how they will be measured on them.
- Assign work: Make sure your new hire has something to work on to fill their days. A good rule of thumb is to assign tasks that require them to work with others on the team.
- Spend time on culture: Encourage your new hire to participate in your company events.
- Create clear objectives: Creating clear objectives with the employee and giving them a chance to ask questions or have input on what to achieve will help to move them from learning mode to working mode. These conversations should include job requirements and behaviours.
Between Three Months – One Year
At three months, your new hire should be contributing in a meaningful way. However, there are still a few tasks in your onboarding program before you send them on their way.
- Feedback: Make time for regular feedback sessions and keep the lines of communication open between manager and employee.
- Team building: Create opportunities for employees to engage with each other in constructive ways. Teams that understand how their members work, think, and communicate tend to be more cohesive.
- Performance reviews: While feedback and regular one-on-ones with their manager should happen regularly, a formal performance review should be part of a new employee’s first year.
New hire onboarding is a key part of any people strategy. When employees feel well prepared to take on their new role, they become productive faster and integrate with their teams more quickly. So, spend the time planning out your onboarding with a formal program, and to really make an impact, make sure it lasts beyond a week. When employees are set up for success right from the start, there is no telling how much they will be able to achieve.
Want to discover the power of an effective onboarding program for your organization. Contact us at bryon.smith@firstavehr.ca or 647-406-4476
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