CORPORATE LEADERSHIP COUNCIL

October 2003
www.corporateleadershipcouncil.com

Fact Brief
Profiled Institution A B C D E F Industry Media/Publishing Retail Telecommunications Electronics Health Care/ Pharmaceuticals Financial Services Employees 10,000 20,000 More than 50,000 More than 50,000 20,000 50,000 10,000 20,000 More than 50,000

Models and Methodologies for Revenues On-Boarding Programs

$2 billion - $10 billion $10 billion - $20 billion More than $20 billion $2 billion - $10 billion Less than $2 billion $10 billion - $20 billion

Key Questions What are the reasons for investing in an on-boarding program? What philosophy and program components do companies utilize to effectively bring in and integrate new hires? How do companies evaluate the success of on-boarding programs and conduct program revisions?

Issue Overview: On-Boardings Impact on Productivity and Retention

Table of Contents Executive Summary Program Goals and Ownership Program Components Evaluation and Revision Research Methodology Appendix A: Program Components at Profiled Companies 2 3

In an increasingly competitive marketplace and environment of continual skill shortages, 1 companies will continue to face the following key challenges in the global economy:
Recruiting and retaining skilled employees Leveraging employees so they are able to quickly contribute to the success of the organization

8 17 20 21

Companies must respond to these challenges with innovative recruitment, retention, and development programs. Employee on-boarding can be a key link between a new employee and these programs. It is an opportunity to validate their decision to join the 2 organization and pave the way for a productive satisfying relationship. While management and HR professionals are quickly beginning to realize the monumental impact, whether positive or negative, that on-boarding has on new hires, many have been slow to invest the necessary time, energy, and resources required for 3,4 effective on-boarding programs. Companies cannot afford to make anything less than a good, positive first impression on new hires. As noted by one interviewed individual in this research brief,
Our new employee is probably at their happiest when they come in the door, and we should be capitalizing on that and making them feel better about their decision, not having them think, Should I have had my business cards here? So we are missing an opportunity to engage that employee, and of course, engagement is the start of retention. Interviewed Individual

Appendix B: Company B 22 New Employee Resource GuideManager Booklet

Definitions of Terms Inductionin-processing, form-filling, policy-explaining activity; benefits and compensation overview; health and safety instruction Orientationprogram designed to provide new employees with complete and uniform information about the company, its organization, mission, and function; usually done on day one On-boardinglong-term process of bringing new employees into the company; making sure they know what is expected of them and how to add value; more about staying than beginning Catalog No.: CLC114QWQ1
2003 Corporate Executive Board

Considering the importance of on-boarding programs, this brief examines programs and innovative tactics utilized by organizations to welcome and integrate new hires into the company.

This project was researched and written to fulfill the specific research request of a single member of the Corporate Leadership Council and as a result may not satisfy the information needs of other members. In its short-answer research, the Corporate Leadership Council refrains from endorsing or recommending a particular product, service or program in any respect. Sources are contacted at random within the parameters set by the requesting member, and the resulting sample is rarely of statistically significant size. That said, it is the goal of the Corporate Leadership Council to provide a balanced review of the study topic within the parameters of this project. The Corporate Leadership Council encourages members who have additional questions about this topic to assign short-answer research projects of their own design.

Models and Methodologies for On-Boarding Programs October 2003

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EXECUTIVE SUMMARY
This brief discusses on-boarding models and methodologies at six organizations. The following pages provide in-depth detail regarding the business case, philosophy, components, evaluation, and revisions of on-boarding programs.

Program Goals and Ownership

Program Components

Evaluation and Revision

BUSINESS CASE Profiled companies target the following reasons for creating an effective on-boarding process:
Retention of employees Communication of values and vision Consistency of information, message, and experience Increased productivity of new hire Welcome and integration

OVERVIEW OF PROGRAMS The company employee population, hiring status, business operations, and unique culture all affect the length and customization of the on-boarding program. PRE-REPORT INITIATIVES Companies begin on-boarding candidates prior to acceptance and report by utilizing initiatives that not only welcome new hires but also start the process of induction. INDUCTION AND ORIENTATION While induction is an essential part of on-boarding programs, companies go beyond induction to incorporate elements such as an overview of employees roles, to enhance orientation and the overall on-boarding experience. RELATIONSHIP ENHANCEMENT PROGRAMS Some programs on-board new employees through relationships built among new hires and between new hires and their managers and peers. ONGOING ON-BOARDING On-boarding of new hires continues past orientation, both within business units and at the corporate level, as companies utilize coaching programs, on-boarding specialists, and training and development programs.

EVALUATION OF SUCCESS Once implemented, an organization may better ensure the effectiveness and long-term success of the on-boarding program by measuring results. Measurement tools include the following:
New employee surveys Session evaluations Trainer and facilitator feedback Formal reviews

PROGRAM PHILOSOPHY A common theme in the philosophies of profiled organizations is the alignment of on-boarding programs with business goals and objectives. KEY STAKEHOLDERS Identifying key stakeholders, gaining their buy-in, and utilizing buy-in is crucial in effectively implementing and sustaining on-boarding initiatives. OWNERSHIP Ownership of the overall program and its components at profiled organizations is typically influenced by the following elements:
Location of on-boarding activities Employee on-boarding population Use of vendors

PROGRAM REVISIONS Various factors will require on-boarding programs to be reviewed and revised. The practices of profiled companies vary in administering reviews and revisions. Almost all profiled companies revise programs on an ongoing basis as well as through sequential formal reviews.

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Goals and Ownership Program Components Evaluation and Revision

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Business Case
Although on-boarding programs have shown great business value, literature cites that on-boarding is often done poorly and companies frequently shortchange this important function of the hiring process. According to a 2000 ASTD study, only seven 5,6,7 percent of training budgets are spent on orientation programs. Profiled companies agree that on-boarding is a vital part of new employees becoming integrated into the organization. As a result, interviewees noted several business drivers that make up the business case as discussed below. Business Drivers for On-boarding Programs KEY BUSINESS DRIVERS FOR ON-BOARDING PROGRAMS
Retention and communication of values and vision are key drivers of on-boarding programs. Additional business drivers include:

Interviewed individuals cite various reasons for the creation and continuing enhancement of on-boarding programs, including the link between successful on-boarding and retention. Details regarding the business case are as follows:
Table 1: Business Drivers for On-Boarding Programs Business Driver Company Example Retention Communication of values and vision Five out of the six profiled companies indicate that retention is the key driver for on-boarding programs. Companies testify that properly conducted on-boarding reduces turnover for new hires. Company A, Company B, and Company D emphasize the importance of ensuring that new hires understand company values and vision. Formal on-boarding is key to ensuring this understanding. The interviewed individual at Company A notes that the value system drives the business case and on-boarding instills those values in the employees. Company C stresses the need for employees to receive the same start and information due to legal issues and a dispersed labor force. In accordance with the fusion of separate businesses to one entity, though global, Company Es on-boarding program targeted consistency of language around performance, hiring, and other areas. Company As business case centers around the long-held belief that talented people can learn to be productive and useful in a variety of positions. At Company E, the desired outcome is not only for employees to gain knowledge but also that the program helps them to be productive faster through that knowledge. On-boarding at Company C ensures that new hires have a face to put with the company and a greeting from a real person rather than a digital screen. The interviewed individuals at Company A and Company D note that on-boarding programs help employees integrate and become part of the overall organization.

Consistency Increased productivity Welcome and integration

Retaining Top Talent We are keeping an eye on the future and recognizing or anticipating that as job markets external to the company improve, there will, as with other employers, be a risk of flight of top talent. And not only flight but being recruited away.
-Interviewed Individual, Company A Increased productivity

Consistency for legal requirements and global variation

Welcome and integration

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Goals and Ownership Program Components Evaluation and Revision

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Program Philosophy
Company Vision for On-boarding New Employees TRENDS IN PHILOSOPHY CONTENT
Similar to a firms overall corporate philosophy, interviews reveal that on-boarding philosophies are companyspecific. However, profiled companies note similar areas of philosophy which include the following:

Although defining an on-boarding programs philosophy is difficult, it is important in creating or revising any program. The figure below highlights the content of profiled 8 companies on-boarding philosophy.
Figure 1: Content of On-Boarding Philosophy Area of Philosophy Company Example Interviewed individuals at Company A, Company B, and Company C, respectively, explain the philosophy of loyalty and retention as follows: It is much more about joining an institution than about doing an immediate task. We want to ensure that new hires are truly brand ambassadors in that they want to stay with the company for the long-haul. The goal is retention, which begins the first day that the new employee is hired. Making new employees feel personally welcome is a central component of the program philosophies at Company A, Company B, and Company D. Through immediate connection with coworkers and the work environment, Company D strives to ensure that new hires feel personally welcomed. Company A and Company D both stress the importance of personal contact as part of the culture and how that makes people feel welcome. At Company A, Company B, and Company F, fitting is an important value. Company A selects candidates based on whether or not they will do well at the company and fit. Part of Company Fs philosophy is to ensure that the new hires first few weeks are positive and that they feel like there is a future for them at the company. The interviewed individual at Company E defined the overall program philosophy as follows: We aim to embrace and assimilate new employees in a way that they are productive quickly and they feel a part of the greater team. At Company D, the phrase get up to speed quickly serves as the overall philosophy statement.

Loyalty and retention Good first impression Personal contact Ensure a good fit and future Embrace and assimilate

Loyalty and retention

COMPANY EXAMPLE: PROGRAM PHILOSOPHY 8 AT HEWLETT-PACKARD

Industry: High Tech Revenue (2002): $56,588 (mil.) Employees (2002): 141,000 Tactic: Hewlett-Packard builds a connection to corporate mission as reflected in the following aspects of its on-boarding program philosophy: Giving new hires the opportunity to connect with other new hires, peers, and senior management Offering ways for new employees to feel connected to the large corporation Providing new hires with a solid grasp of corporate traditions, values, I and culture Making consultants proficient in communicating to the customer what the company or their business unit is about and what makes the company different from competitors

Good first impression

Personal contact Ensure a good fit and future

Embrace and assimilate

Most interviewed individuals detail how the program complements the culture. However, the interviewed individual at Company C asserted that since the culture upholds and fuels the on-boarding process, Company C is better able to capitalize on the understanding and cooperation of management. Company Cs full on-boarding program is outlined in Appendix A on page 21.

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Goals and Ownership Program Components Evaluation and Revision

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Key Players and Stakeholders

Identifying key stakeholders and presenting a solid business case for employee on-boarding initiatives is critical in successfully implementating and sustaining any on-boarding program. Organizations should seek to capitalize on stakeholders position of leadership and influence in the company. KEY TRENDS OF BUY-IN
Interviews reveal that the buy-in at companies exhibit various trends, including the following:

Easy or no buy-in necessary from CEO and senior management HR is central in buy-in All profiled companies cite heads of business/managers as key stakeholders

Outlined below are details regarding the stakeholders whose buy-in was critical to the success of implementing and sustaining on-boarding programs at profiled companies. According to interviewed individuals, there is more support from the top than from the middle. In addition, interviews reveal that convincing senior executives, especially the CEO, was not necessary. However, obtaining the buy-in of other key stakeholders proved to be a more challenging endeavor. Profiled companies note the following stakeholders positions on buy-in for on-boarding initiatives:
Figure 1: Buy-in Position of Key Stakeholders

CEO Senior Management At Company A, obtaining the buy-in from the top is not necessary as commitment is presumed. CEOs at Company C and E initiated revision. Human Resources HR is a key stakeholder at Company B, C, and F; executive VPs of HR at Company B and Company D serve as executive sponsors for programs and revisions. Corporate Education and Training/Universities At Company D, these stakeholders work to design and deliver programs. Company C and Company Es universities drive and support programs. Heads of Business/Managers All profiled companies emphasize that buy-in from managers is crucial. Company E receives more support from the top than from the middle. All Members of the Organization (including new starts) According to Company C, It is not really a question of who drives it because really we all do.

Besides those who stand to benefit the greatest and wield the most influence on on-boarding programs, the interviewees identified the following members or groups of their organizations that they also consider to be key players and stakeholders:
TABLE 2: ADDITIONAL KEY PLAYERS AND STAKEHOLDERS
Administrative and data entry workers Functional experts Operations personnel Volunteer trainers and facilitators

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Goals and Ownership Program Components Evaluation and Revision

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Program Ownership
The following section illustrates the ownership of profiled companies on-boarding programs. In addition, it includes information regarding employee population of the featured programs. Corporate Ownership TRENDS OF OWNERSHIP
Although several variations exist, profiled companies on-boarding programs reveal the following trends:

Ownership and employee population influence how companies organize on-boarding programs. The following table highlights profiled companies program organization.
Table 2: Ownership Employee Population All corporate All corporate Modified for executives Same orientation program for all employees; field employees also receive separate on-boarding. Past program during a period of extremely high levels of hiring activity Vision for future program

Company A B

Officially owned by Human Resources but executed by managers Some companies have separate programs for corporate and field employees.

Ownership Human Resources Managers Human Resources Development Corporate University Human Resources Managers (ensure
compliance and implementation)

Profiled Program

All employees

Corporate Education and Training Human Resources Human Resource Assistants Managers (appear to) Staffing Organizational Effectiveness Managers of On-boarding On-boarding Specialists

All corporate

All corporate

All employees

On-boarding Specialists Within Human Resources at Company F, a group of on-boarding specialists is dedicated solely to on-boarding new hires.
ON-BOARDING SPECIALISTS CASE PROFILE: COMPANY F
Tactic On-boarding specialists provide new hires with personalized attention and services at Company F. Each specialist manages a case load of 35 to 40 new hires across business units. Elements Company Fs on-boarding specialists perform the following duties to bring the new hire into the organization: Contact new employee prior to reporting to work Receive new hire forms as returned Take forms on first day Provide orientation Serve as main point-of-contact for problems, such as errors with first paycheck or relocation difficulties Answer questions on various systems, including performance management process Continue relationship even after new hire is handed over to their business unit

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Goals and Ownership Program Components Evaluation and Revision

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Program Ownership (continued)

Corporate Ownership (continued) Vendor Utilization TRENDS IN UTILIZING VENDORS
All profiled companies currently utilize vendors for video production and/or editing. In addition, interviewed individuals at three of the six profiled companies note that vendors produce multimedia for orientation materials and programs.

All profiled companies design, create, and administer current on-boarding programs in-house. However, companies utilize vendors for particular content delivery media. The following table details trends and future vendor utilization:
TABLE 3: TRENDS OF VENDOR UTILIZATION
Current Utilization

Future Plans

All profiled companies utilize vendors for video production and/or editing. At Company B, Company C, and Company D, vendors produce multimedia components which encompass CD, PowerPoint, video, and other media. Company D utilizes an education and training provider to perform the following: Administration of facilitator and trainer process Communication with employees Management of program evaluation Scheduling

Company B hopes to utilize a vendor as part of the revision of the program to create a strategy that ensures the consistency of all on-boarding components Company C is looking at vendors for products to build and improve the manager-employee relationship. The vendors services and/or products will address the core issues of these vital relationships corporate-wide.

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Goals and Ownership Program Components Program Evaluation and Revision

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Overview of Programs
Program Length LENGTH OF ON-BOARDING PROGRAMS
On-boarding programs featured in secondary literature as well as those of profiled companies vary drastically in length. Programs range from days to weeks to months.

Literature underscores that on-boarding is not just a half-day or one-day program. Across the corporate landscape, company programs extend to both ends of the spectrum, from no program on the agenda to one that lasts a year from the employees date of hire. However, literature also recognizes that the duration of on-boarding differs according to employee job type and accountability or level within 9 the organization. The length of on-boarding programs at the profiled companies is as follows:
Company A90 Days Company B6 Months Company C90 Days Company D12 Months Company E12 Months Company F1 Month (average)

Whether on-boarding lasts for days, weeks, or months, profiled companies deposit the components of on-boarding programs into a set of phases, which correspond to particular time frames. With the exception of pre-report activities, profiled companies segment these phases into 30-day or monthly increments. Program Customization No one-size-fits-all That is the thing about orientations; every single one has to be highly customized. You cant just pull something off the shelf.
-Doris Sims, Alcatel Talent Development Director and Author of Creative New Employee Orientation Programs

The varying degrees to which profiled companies incorporate components reflects the 10 diversity and customized nature of on-boarding programs. In addition, the length depends on the extent of activity from the corporate level. However, interviews reveal that profiled companies exhibit several trends for the on-boarding process. The concentration of corporate time, energy, and resources is highest during the employees first couple of days. All profiled companies deliver induction and orientation from the corporate level. Additional on-boarding components may or may not be administered from corporate. Interviews reveal that at the corporate level, companies do not have a pulse of the activities of individual business units in regard to on-boarding new hires. Thus, many organizations business units conduct decentralized program components to support the on-boarding of new hires. One-on-one sessions with managers and buddy or peer coach program components encounter the most flexibility when determining who should initiate the program componentscorporate versus business units. The following sections highlight key components of an on-boarding program, which are segmented into the following categories: pre-report initiatives, induction and orientation, and ongoing on-boarding components.

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Goals and Ownership Program Components Program Evaluation and Revision

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Pre-Report Initiatives
Pre-Hire Activities TRENDS OF PRE-REPORT INITIATIVES
Pre-report initiatives demonstrate progressive tactics in on-boarding new hires. Secondary literature and interviews reveal the follow initiatives utilized by companies:

Like any other relationship, first impressions greatly impact the employer-employee relationship and loyalty and retention of new hires, which can drastically affect company performance. Published research cites that new employees decide whether they feel at home or not in the first three weeks with the company. Companies must 11 convince candidates that joining the firm will be and was a good decision. Realizing the importance of good first impressions with potential new hires, profiled companies are getting a head start through pre-report initiatives. All profiled companies, except Company A and Company C, begin on-boarding during the recruiting process. Tactics for initiating pre-report on-boarding are included below: Tactic #1: Pre-Hire Information PackageOn-boarding and induction begins prior to acceptance
PRE-HIRE INFORMATION PACKAGE CASE PROFILE: COMPANY F
Tactic At Company F, on-boarding starts with the recruiters and how they manage the relationship with the prospective new hire. Before the candidate accepts the job, Company F sends an offer package of detailed information. Elements Company Fs pre-hire information package includes the following elements: Benefits brochure offering extensive details such as plans, rates, coverage information and policies, and frequently asked questions Information regarding site location including directions, dress code, and accommodations Instruction letter about what to expect for orientation Links to company Web sites Standard information and hard copies of forms to read and sign Telephone number of HR service center for candidate to call with questions

Information packages Welcome sites Welcome goodies Calls from managers or fellow workers

We want to ensure that they have the right information to make the decision to join the company. We had to look at the information we were sending out to those individuals. -Interviewed Individual, Company F

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Goals and Ownership Program Components Program Evaluation and Revision

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Pre-Report Initiatives (continued)

Pre-Report Activities Tactic #2: Online Welcome Site to report

Beginning on-boarding and induction prior

WELCOME AND GET EM STARTED SITE CASE PROFILE: COMPANY E

Tactic When candidates accept an offer, Company E sends them an e-mail with a link to the Welcome Site. Company E starts to bring the new employee into the organization prior to the first day, initiating the process of retention and reducing the time spent on administrative pieces. Elements An overview of the welcome site is as follows: Located on the company extranet, new hires use the same password as it is not person-specific Emulates the look and feel of the employment Web site Two areas of the site include: 1. Things to ReadNeed to read to make a decision in read-only format (e.g., example of confidentiality agreement, subsets around benefits including medical plan overviews, benefits brochure, life insurance information and rates, disability insurance, etc.) 2. Things to DoForms new employees are expected to print out, fill-in, sign, and bring with them on their first day (e.g., tax forms, I-9s, life insurance beneficiary form) Challenge: HR assistants do not believe that new employees will print out forms and would prefer hard copies. HR assistants think that online materials also require verbal walk-through. Next phase: Enable interactive forms to input information (e.g., W-4s) and include links to product information Goal: Prevent orientation from being a big data dump

COMPANY EXAMPLE: WELCOME GOODIES AT VISION SERVICE PLAN 12

Tactic #3: Welcome Goodies company

Pre-arrival introduction of the new hire to the

Industry: Health Care Services Revenue (2002): $1,860 (mil.) Employees (2002): 2,300 Vision Service Plan welcomes new hires by having one of their fellow workers call prior to their arrival. In addition, the company sends a welcome packet including parking suggestions, dress guidelines, on-site caf menu, and ATM and bike locker locations.

Company D mails packages to individuals who accept as part of welcoming and providing them with insight into the company that they are about to join. Included in Company Ds package is a CD giving a virtual walking tour of headquarters and a test to enable potential employees to check their learning about the company. In addition, the package includes a binder about living in the city.

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Goals and Ownership Program Components Program Evaluation and Revision

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Induction and Orientation

Day One TACTICS OF DAY ONE ORIENTATION
Profiled companies employ the following tactics as part of day one orientation:

All profiled companies, except Company E, provide corporate day one orientation to new hires. Tactic #1: Day One Orientation [Induction] company family

New employee adoption into the

Induction New hire activities Overview of company history, milestones, brand, key markets, and strategies

Adopting New Employees

Theyre setting the tone for long-term employment. Its about making orientation more like an adoption process, making the person feel like part of the family, instead of some boring, mandated lecture on the first day. -Kristen Accipiter, Spokeswoman for the Society of Human Resource Professionals

During day one orientation, companies conduct the induction part of on-boarding, which entails the in-processing, form-filling, policy-explaining activity that many think of when they think orientation. As described earlier, Company E and F begin induction prior to report in order to more effectively handle administrative pieces. In addition, this allows the companies to spend more time on activities such as explaining company values, mission, and strategy and making the new employee feel 12,13 like part of the company family. While induction is a necessary and crucial part of orientation, companies cannot afford to miss the opportunity during the new hires first few hours to warmly welcome and proactively engage them as well as communicate and instill the values of the company. It is important for companies to determine what information must be presented on the first day, with an eye toward the long-term success and contribution 14,15 of the employee to the organization. Profiled companies include induction as well as other elements as part of orientation as detailed below:
TABLE 4: INDUCTION AND BEYONDORIENTATION ELEMENTS
Induction Beyond Induction

Benefits and compensation overview Form-filling Health and safety instruction In-processing Policy-explaining Other administrative pieces

Activities to meet other new hires Compliance training or code of conduct segment Executive briefings Extensive explanation of employees role (main focus at Company D) Overview of company history, milestones, brand, key markets, and strategies Various presentations Viewing of recent company advertising campaigns

2003 Corporate Executive Board

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Induction and Orientation (continued)

Day One (continued) Tactic #2: One-on-one Induction Session and Self-Paced Orientation Alternative to group sessions Since Company E begins induction prior to report, day one orientation for new employees serves as a continuation of induction online or a wrap-up session. In addition, the company prevents information overload by offering new hires a program that can be scheduled sometime within their first two to three weeks. This approach enables Company E to streamline the induction process while ensuring that new employees absorb specific information about the company at a time and pace that accommodates their schedule and needs. Company Es day one orientation is highlighted below:
ONE-ON-ONE INDUCTION SESSION AND SELF-PACED ORIENTATION CASE PROFILE: COMPANY E
Tactic

GOAL OF CORPORATE PROGRAM AT COMPANY E

The goal of Company Es self-paced program is to ensure that new employees leave knowing the following:

Instead of conducting the traditional group program, Company E delivers day one orientation with one-on-one sessions with HR assistants and a self-paced program. Elements

Information at a local granular level What the company does Where the new employees position fits in Who the company is

An overview of the main two components of day one orientation is as follows: 1. Benefits Orientation Meeting with HR Assistant Benefits information Sign-up online 2. Self-Paced Program (employee schedules within first two to three weeks) VideoCompany history and heritage with cameo of CEO OnlineOverview of company structure, locations, and products Other topics covered include: 9 Global versus local information 9 Vision and responsibilities of hiring manager, how employees get their jobs done Goal: New hires to leave knowing the following: Information at a local granular level What the company does Where the new employees position fits in Who the company is

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Goals and Ownership Program Components Program Evaluation and Revision

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Relationship Enhancement Programs

New Hire Events TACTICS OF RELATIONSHIP ENHANCEMENT
Profiled companies employ the following tactics as part of optional corporate programs:

Companies go beyond orientation to offer corporate activities for new hires during their first few months on the job. The following tactics demonstrate innovative ways to on-board employees at the corporate level. Tactic #1: New Hire Mixers Opportunities to foster relationships between new hires and for them to help each other adjust
NEW HIRE MIXERS CASE PROFILE: COMPANY E
Tactic Recognizing the value of personal connections in the workplace, Company E hosts new hire mixers as a means to cultivate networking, build relationships, and exchange information among new employees company-wide. Elements The ingredients of these mixers include: WhoAll new hires WhatNew hire mixer with food, drinks, and keynote speakers WhereOn-site at headquarters WhenQuarterly (because of small number of new hires) HowInvited via mass e-mail and follow-up call from HR

New hire mixers One-on-one training

One-on-one Training Tactic #2: One-on-one Sessions with ManagerNew hire career pathing to success One-on-one sessions with managers at Company B and Company C occur once a week and cover topics such as:
Performance assessment/management system Goals of unit and personal goals of employee for the year

2003 Corporate Executive Board

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Relationship Enhancement Programs (continued)

One-on-one Training (continued) Tactic #3: Buddy ProgramsOn-boarding new hires using their peers
BUDDY/PEER PROGRAM CASE PROFILE: COMPANY F
Tactic Company F launched its buddy program corporate-wide by assigning buddies to all new hires. Due to mixed results and responses of new hires and business units, the program is currently optional for new hires. Unlike other companies programs, Company F monitors these relationships from a corporate level. Elements Program structure, effectiveness, and challenges are as follows: Program Structure Calls upon buddies to volunteer Trains buddies Assigns buddies to new hires (at launch assigned to all) Monitors relationships 9 Send out evaluation forms to new hires and those who participate as buddies Program Effectiveness and Challenges Mixed resultsdiffering personal preferences in regard to desiring a buddy Operates at different levelsliving on in some businesses as people in some are more committed than others Effectivenessworked in some businesses and not in others

2003 Corporate Executive Board

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Ongoing On-boarding
Coaching and Training TACTICS FOR ONGOING ON-BOARDING
On-going on-boarding initiatives at profiled organizations include the following:

Profiled companies continue to on-board new employees far beyond their first day through ongoing on-boarding tactics. Tactic #1: Coaching Programs Employees

Integrating and Developing New and Old

Tactic

Coaching programs Training and development programs

COACHING PROGRAM CASE PROFILE: COMPANY D

Company D exploits its coaching program by not only effectively engaging and on-boarding the new hire but also to involve experienced employees and capitalize on their knowledge, skills, and essential buy-in. Elements The program illustrates an effective use of this component of the on-boarding process. Details of the program are as follows: Process Map of Coaching Program Goals Facilitate and encourage employees to take responsibility for personal learning and development Involve experienced employees, especially those resistant with new employees coming in and being in the spotlight Program Start The company encourages employees to request a coach as soon as they recognize the need or its benefits. Some new hires waited six months since they had access to many other people and resources to get connected, including a buddy. Duration Some relationships lasted indefinitely. Minimum time was 12 months. Components Dedicated program managercommits time and effort in instructing coaches and coachees to get desired results from the relationships as well as: Provides encouragement to continue asking questions and to challenge On-going learning Manages and fully utilizes all personality types (e.g., introverts and extroverts) Identifies and addresses personal, performance, cultural, and organizational issues Follow-up processcheck-ins with pairs to see if relationship is strong, if they had questions, and if assistance could be given Quarterly Group Pair Sessionsbring coaches and coachees together to talk about relevant topics, such as how to give and receive effective feedback

Selection Experienced and knowledgeable individuals asked to be coaches

Training Willing employees given training to be effective

Coach Assignment
New hires paired with a more experienced employee based on sufficient common ground for effective learning

2003 Corporate Executive Board

Models and Methodologies for On-Boarding Programs October 2003 Program Creation Program Philosophy and Components Program Evaluation and Revision

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On-going On-boarding (continued)

Coaching and Training (continued) Tactic #2: Training and Development ProgramsContinued on-boarding and development of interested new hires Companies B, C, and D offer training and development programs that are not mandatory for new hires to attend but are open to them if they so chose. In addition, these programs recur, usually by monthly increments, in order for all employees to participate. Company C administers its four-hour program of business tools online, which includes several live courses, and tracks those who have and have not taken the program. The SMART process at Company D includes monthly group sessions with presentations to help employees understand specific in-depth topics relevant to working and living in the organization. In addition, the process consists of one-on-one interviews where employees meet with key people in the unit to learn more about a particular project or topic applicable to the new employees role. Tactic #3: New Employee Resource GuideInvolving managers and employees in the on-boarding process
NEW EMPLOYEE RESOURCE GUIDE CASE PROFILE: COMPANY B
Tactic When the offer letter is extended to candidates, at the same time the recruiting department at Company B mails a New Employee Resource Guide to candidates as well as an executive on-boarding binder to executives. Elements The following information outlines the guide utilized by managers, peers, and new hires and the binder given to executives to facilitate on-going on-boarding. Components and Structure Includes three bookletsmanager, peer advisor, and employee Takes the three participants through the first six months of employment Guides each person through the first four weeks and then through months two to six Provides detailed step instructions as well as bulleted to dos for each phase Executive On-boarding Binder This binder includes various materials such as: Copy of the new employee resource guide Goal-setting process and how to conduct reviews Information about benefits Profiles of all of executives Information that you the executive would have received verbally had they gone through orientation (the company does not require executives to go through orientation) Future Revision: On-boarding process that scales from VP all the way down to administration

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Models and Methodologies for On-Boarding Programs October 2003 Program Creation Program Philosophy and Components Program Evaluation and Revision

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Evaluation of Success
Many companies have seen plenty of return on investment by implementing on-boarding programs that are tied to business drivers. After launching its 40-hour New Team Member Orientation, Neumann Homes, an Illinois-based national 16 homebuilder, observed the following marked business improvements:
Turnover reduced to 8 percent from a high of 26 percent Promotions for 50 of the programs 200 participants Overall profitability increase from 9 percent to 11 percent

QUANTITATIVE AND QUALITATIVE METRICS Most profiled companies evaluate program success through the following measurements:
New employee surveys Session evaluations Trainer and facilitator feedback Formal reviews

In addition to measuring return on investment, companies must continually evaluate the effectiveness of program structure, delivery, individual components, and new employee responsiveness and overall satisfaction. Quantitative and Qualitative Metrics for Measuring Success Measurements tracked by companies include the following:
Figure 2: Evaluating Program Success All profiled companies conduct employee surveys to measure the effectiveness of the on-boarding process. However, the information sought and time at which the surveys are sent to new hires varies. New Employee Surveys No apparent trends appear among profiled companies in regard to when the surveys are administered. In addition, some companies questions focus on the effectiveness of individual components of the program; other companies attempt to gauge the retention of information and overall satisfaction of participants.

QUALITATIVE FEEDBACK AT PROFILED COMPANIES

Interviewed individuals supplied the following samples of new hire feedback: The new employee was pleased to see that the company was concerned with what she wanted to be doing in five years and not just what the company wanted her to be doing today. -Interviewed Individual, Company C They enjoyed or were curious about different racial and international cultural systems and beliefs and appreciated that the company tried to make people feel comfortable, and understood their culture and ethnicity. Most people found the group, one-on-one sessions, and buddythese immediate opportunities for interactionvery helpful. -Interviewed Individual, Company D People know the company. They are comfortable with us. We are a very well-respected name on a global basis. So, they expect more than for someone to say, There is your desk. -Interviewed Individual, Company E

Session Evaluations

Company B and D both administer day one orientation smile sheets. At Company D, new hires also fill out evaluations for every session, including business unit sessions.

Mutiple Sources of Continual Feedback

Company D seeks the feedback of instructors and facilitators of the sessions on the spot. In addition, the company evaluates the success of inititives through ongoing feedback from HR and supervisors of new employees.

Formal Reviews

Profiled companies utilize formal reviews to obtain valuable feedback from key players and stakeholders. Included on the next page are further details regarding companies formal reviews.

TABLE 5 : QUANTITATIVE AND QUALITATIVE METRICS PRACTICES

Quantitative levels include: One to Seven Scale (poor to excellent) Levels One to Five Qualitative practices include: Encouraging open and honest written comments Asking new hires the following questions (Company A):
9 9 9 9 9 Did you feel welcome? Did you have the right information in a timely manner? Do you know where to go for help and resources? Have your needs been met? What can we do better?

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Models and Methodologies for On-Boarding Programs October 2003

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Program Creation

Program Philosophy and Components

Program Evaluation and Revision

Program Revisions
Although companies practices vary in terms of reviewing and revising the on-boarding program, all profiled companies, with the exception of Company A, indicate that revisions are ongoing. Interviewed individuals cite the following conditions that prompt immediate changes as well as those that involve review before revisions are made:
TABLE 6: CONDITIONS THAT PROMPT REVISION
Required

Conditional

Changes in senior management (when featured in program materials) Drastic changes in corporate climate/business conditions Major changes in volume of hiring

Feedback from employees Feedback from trainers, facilitators, and volunteers Feedback from managers and peer coaches/mentors

Subsequent information outlines the practice of profiled companies in reviewing and revising on-boarding programs. Informal and Formal Reviews/Revisions of the On-Boarding Program TRENDS OF REVIEWS/REVISIONS While the schedule and nature of reviews/revisions at profiled companies varies, trends include the following:
All profiled companies, except Company A, indicate that revisions are ongoing Three of the six profiled companies perform formal reviews and revisions every six months Almost all companies conducted major revisions to programs within the last three years

The diagram below further details and charts the schedule and nature of review and revision of on-boarding programs at profiled companies.
Figure 3: A Timeline of Review/Revision at Profiled Companies Launch/Last Revision Company D conducts new employee corporate on-boarding and business unit evaluations every week and within each session for continuous process improvement. In addition, the company holds monthly and quarterly meetings with instructors and trainers to review programs, give feedback, and recognize the work of instructors. Company B, Company C (induction piece), and Company F all conduct formal reviews and revisions every six months.

Weekly Monthly Quarterly

Six Months

Yearly

The goal at Company C was to revise the program yearly. However, since the change in the companys corporate climate was so drastic, the firm decided to revise it every six months. In the past four years, Company E has reviewed the on-boarding process at least three to four times.

Two Years

At Company A and Company C, the last revision occurred two years after the prior one. However, at Company A, there is no set schedule for revision. The interviewed individual noted that given the current business conditions and staffing levels, they will not proactively pursue revision unless a need merits it. A major revision of Company Fs on-boarding program occurred three years ago. The program initially was two days. A year and half later the company reduced it to a one day program as creation of a CD ROM eliminated many redundancies and streamlined the process.

Three Years

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Models and Methodologies for On-Boarding Programs October 2003 Program Creation Program Philosophy and Components Program Evaluation and Revision

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Program Revisions (continued)

Factors Influencing Program Effectiveness Interviewed individuals highlight the following ways in which on-boarding is both effective and ineffective: Impact of Employee Receptivity on Program Effectiveness An employees perception of success depended on his/her receptivity to orientation, classroom or other, new learning, the whole integration process, and ability to manage/or adapt to constant organizational and market changes.
-Interviewed Individual, Company D

TABLE 7: EFFECTIVENESS OF ON-BOARDING

Effective Ineffective

At Company B and Company C, what makes it effective is that it is not just induction. Interviewed individuals at Company C and Company D note that having employees be supportive of and highly involved in the program is the greatest asset. With Company Ds trainers and facilitators and Company Fs on-boarding specialists, these focused and dedicated groups greatly impact overall effectiveness. Interviews with Company B and Company E reveal that sharing the company history and milestones as well as other vital and engaging information gives people what they want and makes the experience memorable.

Interviewed individuals at Company C and Company D express the impossibility of on-boarding programs not being able to be one-size-fits-all. They note the challenge of not meeting all the needs of participants and stakeholders. The majority of interviewed individuals agree that leaving hiring managers and HR responsible for implementing and proactively engaging in on-boarding makes processes ineffective.

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Models and Methodologies for On-Boarding Programs October 2003

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THE RESEARCH PROCESS IN BRIEF

The Corporate Leadership Council conducted a comprehensive search of published materials regarding on-boarding models and methodologies, drawn from trade press journals, other research organizations, and the Internet. Council staff then interviewed professionals at six corporations. These individuals discussed their on-boarding programs. This report represents the findings from these secondary and primary sources. Business Case for On-Boarding Programs 1) What was the business case for developing an on-boarding program? 2) Who were the key players and stakeholders whose involvement and buy-in was critical?

Research Methodology

Project Aims

Program Ownership and Model 3) For what employee populations do you provide on-boarding and how are these programs different? 4) 5) 6) 7) Who owns the on-boarding process? What is the overall philosophy of the on-boarding process? How long is the on-boarding process? (i.e., number of months) What are the key components or phases of the on-boarding process? How are they administered? What, if any, vendors did your organization partner with to design the on-boarding process?

8)

Program Evaluation 9) When and how often is the on-boarding process reviewed and revised? 10) How is the effectiveness of the on-boarding process measured? (i.e., levels 1-4 evaluation) 11) What were employee reactions and feedback regarding the on-boarding process? 12) What about the process is effective and made it a success? What about the process is ineffective?
Guide to Tables and Figures

Figure 1: Content of On-Boarding Philosophy Figure 2: Evaluating Program Success Figure 3: A Timeline of Review/Revision at Profiled Companies Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Business Drivers for On-boarding Programs Program Ownership Trends of Vendor Utilization Induction and BeyondOrientation Elements Quantitative and Qualitative Metrics Practices Conditions That Prompt Revision Effectiveness of On-Boarding

Page 4 Page 17 Page 18 Page 3 Page 5 Page 7 Page 11 Page 17 Page 18 Page 19

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Program Component

APPENDIX A: PROGRAM COMPONENTS AT PROFILED COMPANIES Company B C D E

START
New Employee Resource Guide sent from recruiting New Employee Resource Guide
Manager Booklet

F
START
Package of information, including benefits details

START
Candidates interviewed Walking tour of city Entertained Information accessible on Web site Packet sent with CD Binder sent about living in the city

START
Letter sent via e-mail Accept or decline electronically

Offer Letter Sent Special Delivery

Accepted Offer

Pre-report START
Welcome Induction Overview of business

Call day of acceptance Scheduled lunch day one, meeting end of week Induction Compliance training Cover brand Milestones History

START
Power of Possibilities Induction

Day One Orientation

Units conduct division-specific orientation New hire introduced Scheduled meetings with key business partners Training previously scheduled by manager Managers facilitate business unit orientation Departments conduct different processes Executive talks Once a week Manager unit goals; new hire personal goals for year Discuss performance management system

Business Unit Orientation

Two days of classroom Day One: Welcome Executive talks Overview of key markets Employees role (main) Strategies, values, etc. Day Two: Presentations Introductions Getting-toknow time Facility tour Buddy assigned Small Process Sit down early first day or two on job Establish list of key people for one-onone sessions

Welcome site On extranet Same password for all new hires Read and print forms as part of induction Benefits orientation meeting with HR assistant Self-paced program with video and online company information

Package of information on firm and forms Induction Company values and information Activity to meet other new hires Presentations

Site orientation Divisional orientation Introduced to key customers and colleagues by manager

Business unit program includes classes scheduled over three to six months.

One-on-one Sessions with Manager

Not initiated or directed from corporate

Once a week Topics: Goals Performance assessment Project updates Business partner relationships Peer advisor acclimates new hire with New Employee Resource Guide Peer Booklet

Tracks Managers given information on what they are expected to provide

On-boarding specialist serves as main point of contact, including questions on performance management process

Not initiated or directed from corporate but done by many groups

Buddy Program

Follow-up evaluation e-mail after 90 days

Day one orientation smile sheet New employee one-month survey

Follow-up/ Evaluation

Survey 500 random employees hired within last two years Surveyed employees a year after revision

Coaching Employees asked to be coaches Training for coaches Coaches assigned to new hires Follow-up and pair group sessions (quarterly) Day one and business unit orientation evaluation Instructor and trainer feedback Monthly meetings of instructors and facilitators

Manager responsible for buddy system

Follow-up at four to six week point Pull-back exercise to measure retention of information Six month employee evaluation

At launch of program, every new hire assigned a buddy Mixed results lead to some units having buddies Buddies volunteer and are trained Monitor and evaluate New hire evaluations Formal review every six months

2003 Corporate Executive Board

APPENDIX B: COMPANY B NEW EMPLOYEE RESOURCE GUIDEMANAGER BOOKLET Title Section Subheading Pre-first Day Communicate Something as simple as a two-minute phone call can go a long way toward making an employee feel valued and welcome. Follow these steps: 1. On the day your candidate accepts the job offer, call him or her and express your excitement. 2. Make sure communication continues to be a priority. Schedule time on your calendar now to meet with your new employee on his or her first day in the office. Share the guide. Go out to lunch. Schedule time at the end of the first week to check in with the new employee and prepare him or her for the upcoming week. 3. Announce the arrival to other employees in the department. Set up a meeting. 4. Contact the head of the organization, such as the department vice presidents, to make sure that they know that the person is starting. Every page has a to do that is highlighted in orange which bullets out the four steps. Main paragraph: Youre responsible for making sure your new employees work area is set up before his or her first day on the job. Begin these steps as soon as your new hire is a confirmed employee to ensure that everything is in order on his or her first day. Sample To dos include: Decide where new employee will sit. Clean desk area. Set up desk supplies. Order/set-up computer. Make sure computer has the proper systems/programs. Add new employee to necessary department distribution lists. Get organizational chart and phone list for new employee. Main paragraph: Reach out to the rest of the organization to help acclimate your new employee by taking the following steps: Identify peer advisor Review the guide with the peer advisor Schedule meetings with key business partners and necessary training for employee. Main paragraph: Your employee has attended New Employee Orientation and is ready to start workbut maybe not. Orientation provides a lot of information about the company, but nothing specific about your department. To dos: Meet with new employee on the first day. Introduce employee to department. Give employee time to set up desk. Ask peer advisor to review basic computer systems with new employee. Give new employee time to review intranet site. Meet with new employee at end of first week. Main paragraph: You and your employee have covered all the basics. Now its time to go a step further. During the first month, make it a priority to meet one-on-one with your new employee at least once a week. Be sure to cover the following topics: Goals Performance Assessment Training Assessment Project Updates Business partners To dos: Meet with employee once a week to discuss goals, performance assessment, training assessment, project updates, business partner relationships, and questions. Schedule a meeting for the employee and senior management of your organization. Check in with peer advisor. Main paragraph: Once your new employee has settled into their new position. The following areas should be covered in your weekly meeting: Goals Individual Development Plan (IDP) Cross-divisional contacts To dos: Meet with the employee once a week to discuss the above areas. Main paragraph: This phase will help prepare the employee for long-term success at Company B. Discuss the follow topics during your regularly scheduled one-on-one meeting. To Dos: Continue meeting with employee to discuss project updates, goals, aspirations, development program, and training and development Development ProgramAnother program part of Company Bs on-boarding. Employees get to step out of the office and into a store where they actually look at their role and how it directly impacts the business and other things that they can change to be more effective to help drive business results. 9 Invited after 3 months of employment 9 Encouraged to do before 6 months of employment 9 Spend three days working as a sales associate 9 Not mandatory 9 Run 10 programs a year 9 Maximum of about 15 people per program (due to capacity of area stores) 9 Not everyone chooses to go but you could do it anytime during your career FeedbackReview the on-boarding process and the New Employee Resource Guide What worked? What didnt? Ask your new employee and his or her peer advisor for their feedback. Please forward any suggestions to the Human Resource Development group. Celebrate!You and your department have spent the last six months building a stronger teamdont forget to take the time to celebrate your accomplishments. Sample Scripting and Components

One

Get Ready

Involve Others

First Week

First Month

First Three Months

First Six Months

2003 Corporate Executive Board

WAS THIS BRIEF USEFUL?

The Corporate Leadership Council welcomes feedback as a vital part of our continuous improvement. If you would like to comment on the quality of this briefin general, or specifically regarding usefulnessplease e-mail CLCshortanswer@executiveboard.com.

Professional Services Note

The Corporate Leadership Council has worked to ensure the accuracy of the information it provides to its members. This project relies upon data obtained from many sources, however, and the Council cannot guarantee the accuracy of the information or its analysis in all cases. Further, the Council is not engaged in rendering legal, accounting or other professional services. Its projects should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither Corporate Executive Board nor its programs is responsible for any claims or losses that may arise from any errors or omissions in their reports, whether caused by Corporate Executive Board or its sources.

1 Norm Tollinsky, Self-service: Employee Orientation, HR.com (Date Unknown). (Obtained through http://www.hr.com). [Accessed 15 July 2003]. 2 Norm Tollinsky, Self-service: Employee Orientation. 3 Sally Saville Hodge, "Duty to Worker Doesn't Stop at 'You're Hired'," Chicago Tribune (9 December 1985). (Obtained through Factiva). 4 Joel Schettler and Heather Johnson, "Welcome to ACME Inc.," Training (August 2002). (Obtained through ProQuest). 5 Leslie McKeown, "Retention: Orientation for Retention," HR.com (Date Unknown). (Obtained through http://www.hr.com). [Accessed 15 July 2003]. 6 Sally Saville Hodge, "Duty to Worker Doesn't Stop at 'You're Hired' 7 Joel Schettler and Heather Johnson, "Welcome to ACME Inc. 8 Joel Schettler and Heather Johnson, "Welcome to ACME Inc. 8 Tania Regis, "Employee Orientation," New Straits Times (21 June 2003). (Obtained through Factiva). 10 Joel Schettler and Heather Johnson, "Welcome to ACME Inc. 11 Leslie McKeown, "Retention: Orientation for Retention. 12 Leslie McKeown, "Retention: Orientation for Retention. 13 Kale Roberts, "Breaking in the Top Dogs," Training (February 2000). (Obtained through ProQuest). 14 Tania Regis, "Employee Orientation. 15 Mike Elliot, "Orientation Should Be Well-plannned, Pleasant," Augusta Chronicle (8 June 2003). (Obtained through Factiva). 16 Joel Schettler and Heather Johnson, "Welcome to ACME Inc.

2003 Corporate Executive Board