Onboarding is the process through which organizations equip new employees with the knowledge and skills they need to succeed at their jobs. Unlike new employee orientation, which is usually an isolated, single-day event, the employee onboarding is a process that should start with the first contact an organization has with a new hire and continue through their first year on the job.
Onboarding is an essential component of an organization’s talent acquisition, development, and retention strategy. Onboarding usually fails when companies don't have a clear onboarding process. Research has shown that 87 percent of employees aren’t committed to their job for the first six months, and there is up to 20 percent staff turnover in the first 45 days of employment. This turnover is expensive—direct replacement costs can be as high as 50–60 percent of a departing employee’s annual salary, with the total costs associated with turnover ranging from 90–200 percent of the employee’s salary.
To reduce the costs of employee turnover and keep new employees engaged and committed to their jobs, organizations need a robust onboarding program. In addition to building job-related skills, a strong onboarding program helps employees familiarize themselves with their new organization’s culture and norms. Onboarding can also be a time when teams reinvent themselves and break down barriers. Onboarding provides a valuable opportunity to see the organization through the new employee’s eyes and learn from their perspective.
Many people may be responsible for onboarding new employees, including human resources or organizational development (HR/OD) professionals, instructional designers, trainers, managers, and the new employee:
Departments such as IT, finance, and customer service may play a role in the onboarding process by setting up the new employee’s computer or financial records or training the new employee on customer service protocol. Other departments within the organization might be involved in other ways.
Throughout the onboarding process, it’s helpful to think about what activities need to take place and who should be responsible for them. Taking this coordinated approach to onboarding makes the task feel more manageable and serves as a reminder that acclimating an employee to their new role and organization is a team effort.
There are a number of approaches to onboarding. The most important thing to remember is that onboarding programs should not be generic; role-specific considerations should be made. Organizations might also use different terminology for various parts of the onboarding process. Some, for example, might use “orientation” to describe the entire onboarding process, while others might use it to describe the welcome session that takes place on an employee’s first day. Organizations might also adapt or modify the onboarding process based on their size, industry, and organizational culture.
Some organizations divide their onboarding process into activities that take place before the employee starts (such as setting up a portal for new employees to do light work like reading articles or watching videos about the organization), on the employee’s first day (such as taking the new employee to lunch and giving them a tour of the office), and at various checkpoints throughout the employee’s first year on the job. An important caveat when giving employees prework to complete before their first day is to be mindful that they will have other commitments, such as serving out their notice period at a current job. The goal of prework is to help employees start to feel connected to their new organization, not to overwhelm them with assignments.
Others structure onboarding based on the type of content the employee is learning. These onboarding programs generally focus on organizational onboarding (helping employees learn the organization’s history and culture as well as procedures), social onboarding (helping them acclimate to their new team and its social dynamics), and technical onboarding (helping them learn how to do their new job).
ATD has developed an approach to onboarding known as the 5R Model. This model promotes a holistic onboarding process that encompasses reviewing your current onboarding practices, recruiting for retention, establishing roles and responsibilities, building relationships, and collaborating to deliver results.
No matter how you choose to structure your onboarding program, a best practice is to communicate clearly and consistently throughout the process. Some big companies have flashy onboarding programs with numerous social outings and high-value swag. This can be fun for employees, but research has shown that what they value most is clear and consistent communication from their new organization. Being told when and where to show up on their first day, what to expect when they arrive, who they will be working with, and what their role will consist of are the most important components of a good onboarding experience.
Onboarding is increasingly seen as a cornerstone of integratedtalent management and a launching pad for successful employeeengagement and development initiatives. The ATD research report Onboard, Engage, and Develop: How Organizations Improve Effectiveness found that 91 percent of the study’s more than 700 respondents thought that onboarding was currently important to their organization, and 96 percent thought it would be important to their organization in the next five years.
ATD’s mission is to empower professionals to develop talent in the workplace, and developing talent starts with the onboarding effort. Designing effective onboarding programs involves instructional design, training, evaluation, and other aspects of workplace learning. ATD curates the best content from the world’s leading experts in the field, providing resources to help HR/OD professionals improve their organization’s onboarding practices.
We look at talent development holistically and understand how onboarding fits into the entire employee life cycle, starting with recruiting and hiring, and impacting employee engagement and culture.
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