TM - March 2008 - (Page 49)

Figure 1: Performance in Best-in-Class Key Performance Indicators 100% 100% Best-in-class Average Laggard 80% effort providing an experience to reaffirm new employees’ decision to join the company and integrate the new employees into the corporate culture. In addition to these key strategic differences, several other elements enable best-in-class organizations to achieve superior performance with on-boarding. Elements of on-boarding. Research found company orientation, as well as forms and tasks management are pursued by more than 93 percent of all organizations (Figure 2). However, the on-boarding programs of bestin-class companies are separated by two major components: cultural socialization and mentoring. For example, the cultural characteristics of the younger generation include social networking, which has become a staple in everyday life. Best-in-class companies are more likely to formally include socialization into the standard on-boarding process (94 percent) and to assign a mentor or a coach to new employees (59 percent). Best-in-class companies also are more likely to actually obtain feedback to verify new employees had a positive experience. This helps them continuously fine-tune and improve their programs. Targets of on-boarding. While more than 90 percent of organizations surveyed have on-boarding programs for regular, fulltime employees, and 81 percent have them in place for senior-level executives, only 66 percent provide on-boarding to internal job transfers. Best-in-class companies are 34 percent more likely to broaden the horizon of on-boarding initiatives to internal job transfers. Providing on-boarding to this audience is critical because, upon transfer to an office or branch setting, they need to be socialized into the new social/political culture. 60% 60% 57% 40% 20% 19% 7% 0% Improved new-hire retention rate 23% 2% 4% Increased completion rate for on- boarding tasks/activities 0% Shortened time to productivity Source: Aberdeen Group, January 2008 Figure 2: Elements Included in On-Boarding Programs Orientation to company information Forms management (I-9, W-2, medical/dental) Tasks management (obtain ID badges, parking permits) Socialization into the company culture Training Assignment of a mentor or coach 0% 95% 95% 94% 83% 81% 47% 20% 40% 60% 80% 100% Source: Aberdeen Group, January 2008 Other metrics measured in the study but not used to determine best-in-class status included workstation readiness, time from date of hire (DOH) to completing the training needed to do the job, time from DOH until individual goals are defined and documented, and turn backs, defined as form processing errors. While organizations that achieved best-in-class status were more likely to experience year-over-year performance improvement across all metrics tracked in this study, Figure 1 shows how the best-in-class achieved vastly superior results across the three best-in-class KPI. Research found while 47 percent of all organizations plan to address the pressures to pursue on-boarding with a formal strategy, organizations that achieved a best-in-class designation spend at least as much Beginning of on-boarding. Best-in-class organizations realize the value of starting the on-boarding process before new hires begin employment. They are more likely to start the process upon acceptance of an employment offer and before the first day on the job for all categories tracked in this report. This is critical as the excitement of accepting a job offer quickly can diminish when that person is unable to answer the questions that will follow from family, friends and former co-workers. Length of on-boarding. Eighty-six percent of all companies believe it takes up to six months for a new employee to make a firm commitment to stay with that company longer term (Figure 3). Despite this, only 39 percent of all companies extend their on-boarding program/process beyond a month for senior-level executives as well as regular full-time employees. This means 61 percent of companies end their on-boarding process prematurely. Best- talent management magazine www.TalentMgt.com 49 March 2008 http://www.TalentMgt.com

Table of Contents Feed for the Digital Edition of TM - March 2008

TM - March 2008 Editor's Letter Contents Human Performance - The Paradoxically Gifted Leading Edge - Reverse Engineering: Shifting Focus to HR's Cause Learning Connection - Sharing Talent On the Hunt for Talent Unlock Employee Motivation Through Personality Testing HR Crucial to Executive Compensation Process Downtown Management: Surfing May Not Be Slacking Think Tanks Aid Government in Talent Management Creating Consistency: Enterprise-Wide Succession Plans Battle Retention Deficits With On-Boarding Sunbelt Rentals: A Mid-Level View of HR From the Trenches Butterball: No Chicken When It Comes to Talent Management Advertisers' Index Editorial Resources Full Potential - Choosing Change

TM - March 2008

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