Onboarding: The Vital Gap Between Hiring & Training
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 1 © 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. 2 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 24 Source: The Revenue Accelerator® 6 © 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® 7 © 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. 10 © 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. 11 © 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… 13 © 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? ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ 14 © 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 ________________________________________________________ - ________________________________________________________ - ________________________________________________________ - ________________________________________________________ 16 © 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® 17 © 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® 18 © 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 20 © 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
© Copyright 2024