Effective Onboarding- how to increase employee retention and confidence
The importance of onboarding is definitely a topic gaining more attention lately. With concerns like employee dissatisfaction and low retention the question arises: are companies missing something in their effort to retain employees? Many companies still stick to the traditional "onboarding " which is actually just an introduction: showing the new employee the office, their desk, giving them their equipment and briefly introducing them to their coworkers. But is this maximum a half-day long introduction really enough for an employee to feel totally comfortable and confident with the new workplace and the tasks? Highly doubtful.
Therefore in this article we would like to take a closer look at:
what onboarding actually is and why effective onboarding is necessary
what different types of onboarding exist and what measures they include
some good examples of effective onboarding
What is onboarding and why is it important?
Generally, onboarding can be defined as the process of introducing a newly hired employee into an organization. It goes beyond a simple introduction and covers all aspects of the new workplace, from everyday tasks to corporate social life. The goal is to help the new hire understand the workplace and its intricacies entirely, so going beyond the “what do I have to do'' to the “how do I have to do it”.
Onboarding usually starts with signing the job offer and ends when the employee feels fully adjusted to the workplace and confident in their tasks. This is usually said to be approximately a year, but at least six months since starting a new job. That may sound very long but studies show that most companies who struggle with employee retention don´t have a sufficient onboarding process. The results of ineffective onboarding, or the total lack of it are resulting in dissatisfaction leading to high levels of staff turnover: 20% of staff turnover is happening within the first 45 days of work. A third of new hires leave the company after a maximum of two years. Another concerning aspect is that almost a third of employees hired less than six months ago are already searching for new and better jobs and the number of new employees passively looking out for new jobs is even higher. These statistics clearly show that if a company wants to achieve employee satisfaction resulting in high retention rates, they have to have a clear and effective onboarding strategy.
Effective onboarding: 3 dimensions
Onboarding is clearly a very broad term consisting of many different processes, therefore it may be hard to outline a clear strategy where all factors are equally considered. Employers tend to give a lot of attention to certain parts of the onboarding process, while neglecting others which are just as important to the integration process. Therefore, to show the different aspects of onboarding clearer, three dimensions of the onboarding can be outlined: organizational, technical and social onboarding.
Organizational Onboarding
Organizational onboarding is the process of teaching new employees all the information they will need in daily work life. That includes an introduction to the IT system or a glossary with common work abbreviations, but also small office life aspects like how the coffee machine works or where to park your car. One of the key goals of organizational onboarding is to reduce the anxiety of new hires, since starting a new job can be very stressful and is accompanied with insecurities from not knowing everything yet. Many people feel frustrated by having to ask too many questions and are afraid to annoy someone, so questions can remain unanswered. To reduce this anxiety and insecurity, it is recommended to give as much information as possible even before the first workday, since the period between job offer and first day is considered the most stressful (1). All essential information should also be centralized so it can easily be found and checked at any time if a question should arise, for example in a presentation or document for new employees or an intranet page with relevant information and FAQs.
Technical Onboarding
Technical onboarding is about describing the job responsibilities and routines in detail so that the employee has a clear understanding of what to do and how to do it. Even if the employee has previous experience in the same position in a different company, they can have a different understanding of the correct way of proceeding and the definition of “good” work can also vary significantly. Without proper communication and explanation, misunderstandings and even conflicts can arise because the employee will believe they are doing everything right, without knowing what is expected. That is why defining expectations on the employee is an essential part of this onboarding dimension. Another important aspect of everyday work life is to make clear to the new employee where their autonomy begins and where it ends, as that varies across different workplaces. Especially in the beginning where the new hires are not completely familiar with the work process yet, it is beneficial to set clear goals, deadlines and maybe create timelines for better orientation.
Social Onboarding
The goal of Social Onboarding is to make new people feel welcome and accepted in the company and build trust. It does not require additional explanation why a positive work climate and a strongly connected team is important for a company and of course new employees should become a proper part of the community as fast as possible.Obviously, regular team building events are essential for effective social onboarding and for a good working environment in general. Regular coffee breaks with colleagues will help new employees socialize with their colleagues,enabling them to integrate better , which will ultimately increase well-being. However, especially in big corporations, it can be confusing for new people who to best build relationships with as there are too many people to build relationships equally with everyone. Here it is recommended for the onboarder to define the Top 10 most important people, both internal and external, for the new worker to build relations with first. These people can be coworkers, the supervisor, important clients to partners from other companies.
Overall onboarding settings: what do candidates prefer?
In the 2023 Potentialpark Study we asked young talents whether they prefer their onboarding to be remote, in-person or hybrid and a clear majority prefers to be onboarded in person. It is easier to get into the work process and build personal relationships when you are in the workplace, however, 35% of people prefer a hybrid system of onboarding. That can be explained by a general preference for remote work but also by the fact that people who are relocating for a new job experience an even higher level of uncertainty and have to deal with things like finding a new home, becoming familiar with the new city and personal issues, as relocating can be a challenge for families. Therefore employers have to be aware of these aspects and offer new talents onboarding solutions best suitable for them.
Onboarding in practice: how companies achieve positive employee experiences
Although the importance of a proper onboarding process has not yet reached the minds of all companies, there are many examples of how a good strategy will give new talent a great experience and make sure they feel well integrated.
With over 150,000 employees Google was definitely in need of a systematic approach to the onboarding process, and they are definitely one of the best cases to demonstrate. First of all, Google decided to take the approach where major parts of the onboarding process are conducted by the manager responsible for the employee and not HR. This is supposed to build a better connection between manager and employee, and the employee can get familiar with tasks, responsibilities and expectations more directly. HR on the other hand works on making the new employees familiar with Google's corporate culture. Furthermore, Google managed to increase the efficiency of their new hires (Nooglers) by 25% through an email that HR sends to the manager responsible. This email contains 5 to-do bullet-points:
Inform your employee about their job description
Give your Noogler a peer buddy.
Help your Noogler interact with co-workers.
Set up onboarding check-ins once a month for your Noogler’s first six months.
This is also a clear example of effective communication between departments. When it comes to the Nooglers themselves, they receive so-called ”just-in-time nudges” that are basically reminders about next steps they should take divided in four categories: gentle, timely, relevant, and easy to execute. These nudges were introduced to make sure the Nooglers receive necessary information in a fast and easy way and make their time management easier.
Potentialpark’s Best-case practices
A good onboarding does not only happen once the employee has started at their new job, but begins when attracting the right candidate before even applying. Posting information about what onboarding looks like, on your communication channels, highlighting the first steps of a new employee will highlight your culture and your integration process. Potentialpark has compiled best-case practices of onboarding information shared on top employers’ career websites.
Rocket
Rocket informs future applicants about what will await them when they start working: every new employee starts with a three day orientation and before even starting they will receive all necessary work equipment and a New Hire Guidebook with information. It is also worth mentioning that Rocket already on that stage of the onboarding process gives explanations about remote onboarding and support during the whole onboarding process.
Thyssenkrupp
Thyssenkrupp as well provides future employees with information about the beginning stages of the work process. Besides information about introduction meetings and work equipment, they also provide insights about planned strategic meetings where corporate as well as individual goals will be set.
Conclusion
Onboarding is essential for new employees to settle successfully in their new job. With a three-dimensional onboarding process, companies can inform candidates about their work life, job responsibilities, and grow strong connections with the team. Sharing information about this entire process online, on what new employees will learn, who will guide them, how their onboarding will look in general and in specifics can be a gateway to attract candidates, and later retain employees.