Onboarding: The Vital Gap
Between Hiring & Training
Building Professional Onboarding Systems to Ramp People Up Fast
Merit Gest
President & Founder
Sales & Onboarding Strategist
Merit-based Onboarding, Inc.
720-980-1286
[email protected]
www.MeritGest.com
Denver, CO
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
About Merit Gest
You don’t need another
consultant to tell you what
you should do…
You need someone to just get
it done.
Meet Merit Gest…
Merit Gest has more than 20 years of experience working with companies to grow revenue,
increase profitability and reduce turnover. She is President and Founder of Merit-Based Consulting,
a Denver based boutique firm specializing in hiring and onboarding. The Merit-based Onboarding
Methodology ensures that new hires meet all of the expectations of their new employer fast
including understanding their new environment and culture. Using The Revenue Accelerator®, a
blend between onboarding technology and a learning management system, Merit and her team
create custom onboarding programs that are flexible, collaborative, consistent, automated and
scalable. Merit is one of a small handful of specialists in the world certified and trained in
Emotional Intelligence through Multi Health Systems and Cultural Transformation Tools through
Barrett Values Center, giving her a unique perspective for hiring, onboarding and retaining top
talent. Merit is an active member of The National Speakers Association, has been featured in
Selling Power Magazine as an expert advisor, writes articles for Colorado Biz Magazine and speaks
regularly for Vistage International and TEC Canada, the world’s largest organizations of CEOs. Merit
pulls business lessons from her adventures backpacking around the world, bungee jumping, sky
diving, ice climbing, scuba diving, paragliding and… crashing.
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Sales & Onboarding Strategist, President of Merit-Based Consulting, Inc.
[email protected] All Rights
Reserved
www.MeritGest.com
Denver,
CO
© 2015 Merit-based
Onboarding, [email protected]
Inc.
Merit Gest
720-980-1286
720-980-1286
Which manager is more likely to hire someone who will produce more value & stay for the long term?
Which employee is more likely to produce more value & stay for the long term?
If you have a great hiring process and attract top performers,
it is a crime to lose them to an unorganized onboarding process.
If you have a loose hiring process, and someone slipped through,
it is a crime to allow them to stay because of an unorganized onboarding process.
Your hiring process should
-
Identify candidates with the potential to be great in your organization
Your onboarding process should
-
Harness enthusiasm and set up new hire for long term success
3
© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
ORIENTATION
ONBOARDING
HR paperwork
Tour of office
Basic job functions
1 day – 2 weeks
Setting up passwords
1-2 people accountable
1 size fits all
High content, low context
Socializing people into culture
Org chart with photos and context
Learning components that fulfill expectations
Pre-day 1 – 3 months +
Discussing career path
Multiple people accountable company wide
Customized plan meets new hire where they are
Moderate content, high context
Onboarding is welcoming, orienting and engaging new employees to help them acclimate
to the new environment and become productive members of the team.
Onboarding takes place the moment the new hire has their first interaction with your company
until the moment they are fully efficient in their new role.
Grade your current onboarding process (between A+ and F)
_________
4
© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Companies that leave onboarding to chance
experience failure rates in excess of 50 percent
when it comes to retaining new talent.
-
Egon Zehnder International, 2007
What does failure look like?
 Great people leaving within the first year
 Keeping non-performers too long

______________________________________________

______________________________________________
How many great people leave before you recoup your investment in hiring them?

Think of an employee who left within the first year who had the potential to be great.
How many “Todds” have you lost too soon?

What does it really cost your organization to lose a good person too soon?
How many non-performers slipped through your hiring process and stayed?

Think of an employee who stayed long after they exhibited signs that they were not a good
fit.

What does it really cost your organization to keep a non-performer too long?
5
© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
www.SalespersonProfitabilityCalculator.com
How many great people leave before you recoup your investment in hiring them?
This tool is one example of how you can calculate the amount of time it will take to recoup your
investment in the new person. The tool is designed for sales, but you can use it as a guide to determine
the ROI for other roles as well.
Salesperson Profitability Calculator
Companies don't hire salespeople. They make an investment in
revenue. And, while the sales department is your source of
revenue, it also represents a major expenditure for your business.
Use our Salesperson Profitability Calculator to determine when you
will be profitable on your new sales hire investment.
Warning! Only proceed if you have the stomach to see the results.
Step 1: Enter the monthly salary paid to your sales person
Step 2: Enter the total monthly cost of a sales person to your company
(include salary, benefits, commissions, overhead, travel, % of
manager time, office space, etc.)
$
2083
$
2916
Step 3: Enter the expected profit percentage on the sales generated by the
sales person
10
%
Step 4: Select from the dropdown list the month in the sales person’s tenure when you expect that
their…
5
a) Monthly revenue will match the monthly salary paid
b) Monthly revenue will match their total monthly cost to the business
8
c) Total revenue will match the total salary paid
15
d) Total revenue will match the total cost to the business
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Source: The Revenue Accelerator®
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
www.SalespersonProfitabilityCalculator.com
Monthly Revenue Analysis
Your company will invest $ 10,415 in the sales person before their monthly revenue meets their
monthly salary.
(This is based on a monthly salary of $2,083 and 5 months before their monthly revenue matches
their monthly salary.)
Your company will invest $ 23,328 in the sales person before their monthly revenue meets their
monthly cost.
(This is based on a monthly cost of $2,916 and 8 months before their monthly revenue matches their
monthly cost.)
Total Revenue Analysis
Your company will invest $ 31,245 in the sales person before their total revenue matches the total
salary paid.
(This is based on a monthly salary of $2,083 and 15 months before their total revenue covers their
total salary paid.)
Your company will invest $ 69,984 in the
sales person before their total revenue
matches their total cost.
(This is based on a monthly cost of $2,916 and 24 months before their total revenue covers their
total cost.)
Profit Analysis
Your sales person has to generate $ 20,830 in revenue per month at a profit of 10% to cover their
total monthly salary.
(This is based on a 10% profit on sales generated by the sales person.)
Your sales person has to generate $ 29,160 in revenue per month at a profit of 10% to cover their
total monthly cost.
(This is based on a 10% profit on sales generated by the sales person.
Source: The Revenue Accelerator®
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
The REAL Reasons Your People Will Leave
* People will leave their jobs for the following top four reasons:
1.
__________________________________________________________________
2.
__________________________________________________________________
3.
__________________________________________________________________
4.
__________________________________________________________________
62% of employers
plan to increase compensation for their existing employees
32% will offer
higher starting salaries for new employees
You must protect your
investment in people
with a well-designed
onboarding process.
* Based on a compilation of surveys (Forbes, Entrepreneur, CBS MoneyWatch, SHRM & Harris Interactive from 2012-2014)
8
© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Business Case for Onboarding: Cost of Keeping Non-Performers Too Long
TOTAL RECRUITING COSTS
$ 15,000
KEEPING NON-PERFORMERS TOO LONG: Hard Costs of keeping non-performer 6 months
Monthly salary
6 months X $4,200/ month =
$ 25,200
Benefits
6 months X $2,000/ month =
$ 12,000
Based on US Dept of Labor’s Bureau of Labor Statistics calculations from 9/04; 29% of worker’s compensation comes from benefits. This example
assumes a base salary of $50,000 and commission/ bonus plan designed to generate $100,000 in income in addition to benefits package.)
KEEPING NON-PERFORMERS TOO LONG: Time Costs of keeping non-performer 6 months
Manager time (Avg 2 hrs/ day X 6 mos)
240 hours X $100/ mgt. hour =
$ 24,000
Administrative time (Avg 1 hr/ day X 6 mos)
120 hours X $30/ admin hour =
$
3,600
KEEPING NON-PERFORMERS TOO LONG: Lost Opportunity Costs- Sales Example
Avg $ value of expected monthly sales: $100,000 X 6 mos= $600,000 @ 10% margin= $ 60,000
Lost Opportunity/ Lost Customers/ Lost Competitive Edge…
estimate
PRICELESS
Poor productivity impacting morale
estimate
PRICELESS
Total cost of keeping non-performer 6 months
Total recruiting cost
Total cost of turnover for one year
$ 124,800
$ 15,000
$ 264,600
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
KEEPING NON-PERFORMERS TOO LONG: Hard Costs of keeping non-performer 6 months
Monthly salary
6 months X $______/ month =
$ ____________
Benefits
6 months X $______/ month =
$ ____________
KEEPING NON-PERFORMERS TOO LONG: Time Costs of keeping non-performer 6 months
Manager time (Avg 2 hrs/ day X 6 mos)
___ hours X $_____/ mgt. hour =
$ ___________
Administrative time (Avg 1 hr/ day X 6 mos)
___hours X $_____/ admin hour =
$ ___________
KEEPING NON-PERFORMERS TOO LONG: Lost Opportunity Costs- Sales Example
Avg $ value of expected monthly sales: $_______ X 6 mos= $_______ @ ___ margin= $ ___________
Lost Opportunity/ Lost Customers/ Lost Competitive Edge…
estimate $ ___________
Poor productivity impacting morale
estimate
$ ___________
Total cost of keeping non-performer 6 months
Total recruiting cost
$ ___________
$ ___________
Total cost of turnover for one year
$ ___________
9
© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Every month you wait for a non-performer to start performing,
you throw money out the window.
Every month you wait to hire a top performer,
you give up money plus lost revenue plus destroy morale.
Your accounting software is not capturing this type of data.
Your hiring managers need to know this.
How can you alleviate this pain and minimize these costs?
Through a formal onboarding process.
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Onboarding Basics
There are four basics every Onboarding program must have:
1.
Clearly defined portfolio of _____________________________________________________.
2.
_________________ _________________ to prepare new hire to fulfill on each expectation.
3.
Collaboration with __________ __________________.
4.
Quizzes to test the _________________ __________________ of each learning component.
Supercharge Your Onboarding Process
1. Participant surveys- collect feedback and continuously improve Onboarding processes
o Immediately after completion of onboarding
o 90-120 days after completion of onboarding
2. Reports at the touch of a button- know if new hire is pacing well or lagging behind
o Compliance alerts emailed to all relevant supervisors
o How participants answered each quiz & survey
3. Blended process- including both self-directed and instructor led training
o Videos, documents, websites, conversations, demonstrations, field trips, role play
4. Easy to modify format- easy to copy portions of program for use in others
o Upload all your existing documents into one library and then select the content you need
for the specific role. Change the master document once and all future participants see
the newest information.
o Meet the participant where they are by customizing their onboarding experience.
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Onboarding Preparation Checklist
Task
ADMINISTRATIVE- 5
Organizational chart with photos & description of job
Email template announcing new hire
New hire "care package"
Prepare the receptionist
Get the office ready- desk, phone, computer, passwords
HUMAN RESOURCES- 7
Employee handbook
Policy and procedures manual
New hire paperwork system ready to go
Document career path for employee advancement
Document frequently asked questions
Easy to modify format for future improvement
Survey to deliver at conclusion of onboarding
DIRECT MANAGER- 18
Welcome Aboard letter from direct manager
Clear job description with expectations
Portfolio of expectations- 30-60-90 days
Task list to prepare for new hire day 1
Written agenda for week 1
Written agenda for week 2
Written agenda for week 3
Written objectives for week 4 - 12
End of Day Report format
Culture "Check In" format for conversation
Answers to Frequently Asked Questions
Quizzes to measure progress toward expectations
Demonstration of Appreciation of effort
Demonstration of Acknowledgement of result
Input from all departments relevant for new hire’s role
Blend of self-directed and instructor led content
Content for training to deliver on portfolio of expectations
Reporting function to track progress or build case
Have
Don't Have
_________
_________
CEO- 5
Welcome Aboard letter from CEO
Company Story/ History- video? In person?
Demonstration of Appreciation
Demonstration of Acknowledgement
This is what gets you a raise/ this is what gets you fired
CULTURE MENTOR- 5
5-10 connection building activities- sense of belonging
Demonstration of Values- statement & examples
List of conversations to have prior to day 1- dress/ lunch
Group of "culture mentors" or "onboarding buddies"
Deliberate experiences designed to communicate culture
12
Total
_________________________
© 2015 Merit-based Onboarding, Inc.
Merit Gest
_____________
720-980-1286
[email protected]
All Rights Reserved
Your Results: Onboarding Preparation Checklist
You get a BONUS 10 points if you have a technology solution to house your onboarding content!
(0-10) It won’t come as a surprise, but you have quite a bit of work to do



Delegate the Onboarding process to someone on your team ASAP
Access free resources to get started at www.MeritGest.com/CEO
Set up a complementary Consultation with Merit at 720-980-1286
(11-30) Completing this project may not be as overwhelming as you think


Access free resources to get started at www.MeritGest.com/CEO
Set up a Virtual ½ day or full day with Merit to assess, update and
rollout your onboarding process quickly so that big improvements can
happen fast. Call Merit at 720-980-1286
(31-50) You are an onboarding rock star and there’s always room to supercharge it



Give yourself a well-deserved pat on the back.
Are you currently using any software/technology to automate your
process?
If not, schedule a consultation with Merit to discover how to
streamline your onboarding process so you can grow your business
without over burdening the management team.
Call Merit at 720-980-1286
Let’s examine some concrete tactics to improve onboarding…
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Instantly Improve “Day One”
TIME
1.
______
___________ before paper.
2. ______
_________ __them at the door on day 1.
3. ______
Call two days before to discuss ________________ and ________________________.
4. ______
Take temperature end of first day. What can we learn? Get their ________________.
5. ______
Care package of ____________________________________ wrapped & on their desk.
6. ______
Congratulate new hire at end of first week and ______________ them in _________.
7. ______
Ask several people from around the company to _______ a _________________ note.
A BIT MORE OUTRAGEOUS…
8. ______
Invest in a ______ _____________ and _______ _____ to welcome new hire in style.
9. ______
Learn their _________________ of choice in the morning.
Have the greeter waiting with beverage in hand to greet them on day 1.
10.
______
Send something ________________________ to their _________________________.
How long would it take to implement all of these ideas? _____________________________________
What could you do in your company?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
What is the one action you will have implemented when you get back to your office?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Catching Non-Performers
If a non-performer somehow made it through your hiring process,
it is critical that your onboarding strategy weeds them out quickly.
Focusing on and measuring the _______________ will not give you access to the LEADING
indicators you need to make decisions about when to let _____________________________ go.
The key is to track and measure the ____________ and ______________ that lead to the results.
Don’t rely on a strategy of __________ someone will bring in results, _______________ and
____________ their actions.
If the actions are not happening, neither will the results.
EVER.
Why is this important?
 A high-effort employee may outperform low-effort employees by 20%.
 A strongly engaged employee is 87% less likely to leave a company within the next 12
months.
 An engaged employee is 88% likely to stay even if offered a 10% raise for a similar job
elsewhere.*
* 2012 McLean & Company research
Tips for Weeding Out Non-Performers
o Share performance review format in advance
o Articulate specific examples of excellent, average and poor performance in the role
o _____________________________________________________________________________
o _____________________________________________________________________________
o _____________________________________________________________________________
15
© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Setting Expectations & Measuring Progress – STEP ONE
Specific role: ________________________________________________________________________
Information: What do they need to KNOW?
-
Company history
Client support process
Expense policies and procedures
Ideal client profile
________________________________________________________
-
________________________________________________________
-
________________________________________________________
-
________________________________________________________
Action:
What do they need to DO?
-
Strategically analyze an account
Deliver a corporate presentation
Forecast deals in the pipeline
Upsell an existing client
________________________________________________________
-
________________________________________________________
-
________________________________________________________
-
________________________________________________________
Tools:
What systems and tools do they need to USE?
-
Phone system
CRM (Customer Relationship Management) software
Pricing tool
Intranet site
________________________________________________________
-
________________________________________________________
-
________________________________________________________
-
________________________________________________________
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Setting Expectations & Measuring Progress – STEP TWO
Delegate step two
Within each of those three categories, there are four considerations, done in this order:
1.
2.
3.
4.
WHO will teach them to know, do or use it?
HOW will the component be taught?
HOW will the knowledge transfer be assessed?
WHEN do they need to know, do or use it?
Example:
New hire in an operational role
Things to KNOW:
1.
How all of the engineers contribute to each project
a. WHO:
Bob, Engineering Manager
b. HOW:
Video training
c. HOW:
Mock scenario assessment
d. WHEN: Day 5
Things to DO:
1. Process for putting new orders into the cue for scheduling jobs
a. WHO:
Barbara, Operations Manager
b. HOW:
1 on 1 time with Barbara and step by step procedure list
c. HOW:
Time & accuracy test
d. WHEN: Day 10
Things to USE:
1.
Tools for cleaning up chemical spills
a. WHO:
Joey, Assistant Plant Manager
b. HOW:
Vendor training from chemical supplier- off site training
c. HOW:
Job shadow assessment using water spill
d. WHEN: Day 20
Know, Do & Use Methodology Source: The Revenue Accelerator®
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Example:
Setting Expectations & Measuring Progress- Sales Example
New hire in a sales role
Things to KNOW:
1. Company “elevator pitch”
a. WHO: Sam or Diane, Senior Account Executives
b. HOW: Listen to recordings and study scripts
c. HOW: Deliver pitch live to group at sales meeting for feedback- pass/ no pass
d. WHEN: Day 5
2. Competitive landscape
a. WHO: Rich, Sales Manager and Joan, Sales Support
b. HOW: Discussion and review websites and content in competitor files
c. HOW: Prepare spreadsheet highlighting what competitors offer & do not offer
d. WHEN: Day 4
Things to DO:
1. Make sales calls in territory (weekly target # set by new hire & sales manager together)
a. WHO: Rich, Sales Manager
b. HOW: Daily job shadow 2 hours/ day, 5 different salespeople plus manager
c. HOW: Weekly report generated through CRM listing number of calls
d. WHEN: Beginning day 15, tracking weekly
2. Create & build on new prospect target list
a. WHO: Rich, Sales Manager
b. HOW: Review examples of lists discussing why good or bad prospects
c. HOW: Weekly 30 minute meeting to review
d. WHEN: Due 2pm every Friday beginning week 2
Things to USE:
1. Contact management software
a. WHO: Joan, Sales Support
b. HOW: Video tutorials first then meet with Joan for specific questions
c. HOW: Mock scenarios- how long to input & find info needed
d. WHEN: Day 8
Build the system once, automate it and never worry
that something will fall through the cracks ever again.
Know, Do & Use Methodology Source: The Revenue Accelerator®
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
WHO
HOW TAUGHT
Each expectation goes on a
separate page and then you
work around the model.
(expectation)
WHEN
HOW ASSESSED
19
© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
Next Steps – Action Planning
Grade your current onboarding process (between A+ and F)
_________________
Onboarding Preparation Checklist score – Have/ Don’t Have
_________________
Turnover cost
_________________
ACTION ITEM
OWNER
1
2
3
4
5
Compliance
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© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved
DEADLINE
Key Takeaways
 Start with a great hiring decision, but don’t stop there.
 Everyone remembers their first day on the job. Design it
deliberately so it is worth remembering.
 Start with the end in mind. Structure the program to ensure
that all of the expectations you have can be met.
 Onboarding is not one size fits all. Build a library of learning
components and choose the relevant modules for each new
hire to customize their experience.
 Onboarding is not over because a period of time has passed.
Onboarding is over when proficiency is achieved.
 Don’t try to eat the elephant at once.
o Find the gaps in your current program.
o Fill the gaps with relevant content.
o Improve each piece of the process over time.
You can do this… I can help.
[email protected]
720-980-1286
21
© 2015 Merit-based Onboarding, Inc.
Merit Gest
720-980-1286
[email protected]
All Rights Reserved