Importance of Creating a New Employee On-boarding System

Latest figures have once again shown an employee’s average period of time staying at the one company has continued to drop and that circa 80% of all new employees decide within the first 6 months of employment if they will stay with their new employer or once again enter the job market.  This arguably has increased the level of importance of companies adopting an effective New Employee On-boarding System, in fact independent figures which have been released suggest statistically, companies who have implemented a New Employee On-boarding System have reduced employee turnover and in turn have reduced their recruitment and training costs.   We acknowledge every company is unique in their own way, but we have included below the main benefits for a company to creating a New Employee On-boarding System (NEOS).   At the end of this blog there are instructions on NEOS activities to help insure you have a robust and efficient new employee on-boarding process.

Company will increase motivation and company loyalty from new employees
Company employee retention rates increase as new employees will stay longer
Company will reduce the recruitment costs associated with new hires
Company training budget for new hires will also be reduced
Company savings will reduce bottom line costs
Company will receive an increase in overall profitability and shareholder value

Outlines Company Brand and Culture to new Employee
Adopting an NEOS provides the company/department with the opportunity to outline to their new employees:-
What is it that makes an employee succeed in their organization?
What are the issues that can blindside a new hire and isolate them from their colleagues?
What processes are necessary for the new employee to know?
Who does the new employee go to and for what?
Who the Senior Management are in the organization?

Outlines Company and Department Strategy to Employee
An NEOS provides the company/department with the opportunity to give their new employee a general introduction to the organization and a chance to understand more about the company (i.e. organizational goals, important processes, general employee information, etc.).  It is at this stage each new employee should be assigned a mentor to help them with their transition in the company but it is advisable the mentor should not be the new hire’s direct supervisor but a peer who is not in competition from the new hire.

Celebrates Employees success in getting the job
There is no nicer way to welcome a new employee in to the company than to celebrate their arrival. You can do this by either having a reception in the boardroom or if appropriate going out for drinks for lunch or after work as this will give people in the organization an opportunity to get to know them. It also says very clearly that the company is happy that the new hire is now part of the organization and is an important part of their team.

Companies only get one chance to create a good first impression with Employees
There in an old saying that says first impressions last longest.  A company that adopts and implements a NEOS is saying to their new employee that they are not on their own to either succeed or fail in their new job but the organisation has created a system for them not only to succeed in their current position but will also allow them to develop their skills to further their career in the company.

New Employees generally learn and remember more at the start
There is a saying you can’t teach an old dog new tricks.  Whether this is true or not is up for debate but what has been factually proven is new employees are more likely to be more emotionally susceptible to learning and remembering.  As a result an NEOS will take advantage of the opportune time to capitalize on the new employee’s emotions and excitement and solidify their commitment to their new employer.

Introduces Employees to technical tools at their disposal
New employees should be introduced to all the technological tools that will be at their disposal to perform their tasks properly and efficiently, ranging from desktop computers to laptops to fax machines to printers to telephones to smartphones to tablets, etc. Full training should be given to the new hire when and where appropriate with assessments built again in when and where appropriate.

Reduces Employee misunderstanding of role expectations
For approximately the first 2 weeks of the new hires employment, the mentor should be setting up lunches or meetings with various staff and in if relevant clients to allow the new employee the opportunity to get to know all the people that they will be working with and the business/projects they may be active on and what is expected of them.

Decreases Employees learning curve
Companies that have adopted a NEOS and utilise the opportunity to have established employees share examples of best practices with the new employees (avoiding reinventing the wheel) successfully reduce the amount of time a new employee learns their new job and are able to perform their tasks properly and efficiently in less time in being in their job.

Builds Employee optimistic attitude towards the Company
Success breeds success.  Employees who are successful in their roles tend to be more engaged and loyal to the company.   Pick a project or task for the new employee that will work to their strength and is relevant to the reason that you hired them. This will allow the new hire to feel a part of the organization and build their internal self-confidence and additionally this will have significant impact on their engagement that will in turn want them to utilize their skills to the fullest extent possible to create more successes for themselves, their team and the company.

Engages Employee to give new ideas and builds their self-worth and confidence
NEOS should fully engage the new employee/s because new hires who feel their participation is not just welcomed but that their feedback is listened as the company seem to care about them are more likely to develop their self-worth and personal confidence which will contribute to their overall performance of their job.

Builds Employee motivation and job satisfaction
When creating a NEOS build in assessments for the new employee and implement when appropriately and share the results with the new employee.  When results are positive the assessor needs to compliment the new hire on their success.   If any of the results are not positive the assessor needs to give the new employee constructive feedback explaining where they are going wrong and the steps required to improve their standard of performance.

Builds Employees relationships with fellow Colleagues
There is no better way to building a new employee’s team spirit with their other colleagues than by interaction.   Create a relevant task for the new employee to perform with some or all their colleagues within their department to allow the new employee to create a rapport with their new colleagues.

Statistically reduces Employee turnover
NEOS statistically help create happy productive employees and happy productive rarely leave their current employment thus reducing employee turnover which has an impact on the profitability of the company’s profit margin.

Provides Company opportunities to identify Employee shortfalls and actions to take
One of the main advantages to a NEOS is that it gives the company the opportunity to assess the strengths and weaknesses a new employee has and as a result what actions may need to be taken to address any new candidates shortfalls they have before it becomes a major issue and has too much of a negative effect on the new hire or the rest of the team they work with.

Increases the Companies Candidate pool
Companies who create an NEOS soon find out this provides them with a mechanism that allows them to assess candidates who have additional skills that had never been considered before that could benefit the company thus broadening the skills range of potential candidates they could choose from.

Before First Day Activities
Send successful New Employee a personal welcome.
Ensure infrastructure support has been put in place for New Employee.
Prepare New Employee’s first work assignments.
Prepare “New Employee Welcome Pack”.

First Day Activities
Share the Company mission and values to the Employee.
Assign a mentor (not someone who is above them or would be competing against them).
Orient the Employee to the Company.
Explain the Company management style and preferences.
Send introduction email to Staff and introduce Employee in person to all relevant Staff.
Review Employee’s lunch breaks and leave requirements.

First Week Activities
Set Employee job scope and performance expectations.
Explain to Employee how work is routed and assigned.
Assign Employee with meaningful work.
Ensure inclusion of new Employee on email distribution lists.
Introduce Employee to key Management if relevant.

First 90 Days Activities
Provide Employee with essential training.
Monitor Employee performances and provide and obtain Employee feedback.
Assign time for periodic one-on-one Employee sessions.

First Year Activities
Provide Employee with formal and informal feedback on their performances.
Create a Development Plan for the Employee.
Recognise Employee for any positive contributions they have.

Implementing a new employee on-boarding system (NEOS) will increase motivation and loyalty, which means improvements in staff retention rates, which in turn reduce the recruitment and training costs of new hires.  The bottom line is that the NEOS will help the company, reduce costs, save money, and produce a happier workforce.

If you have any questions regarding this article or require further information about our Sales Consultancy Practice, please call us on 0844 2577 888.

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