Beyond the Honeymoon

Transcription

1 Beyond the Honeymoon Keeping new employees from the exits

2 2 Beyond the Honeymoon Keeping new employees from the exits 3 Contents Our research: why now? 4 Main findings 7 The Research Context: the thinking that framed our research 8 Methodology Detailed findings 10 Colleagues and settling in 12 Line Managers and new starts 14 The Honeymoon 15 Feelings of delight 16 Recommendations for Managers 18 The Institute of Leadership & Management is the professional membership body for leaders, managers, coaches and mentors. We believe inspirational leadership holds the key to personal fulfilment, social wellbeing and economic prosperity. By connecting like-minded people, we aim to influence and inform and be the source of pioneering thought leadership and commentary in our field. References

3 4 Beyond the Honeymoon Keeping new employees from the exits 5 Our research: Why now? CIPD (2015) confirmed that recruiting and retaining talent remains an ongoing concern for business leaders. Estimates vary widely about the cost of losing and hiring a member of staff with Oxford Economics ( 2014 ) citing from 5,000 to 30,000. It is clear that businesses need to maximise retention as failing to retain those hard-won new employees represents a significant loss in time, money, and overall productivity. We looked at the process of recruitment itself and also the crucial first three months of employment, asking both new employees and line managers of new employees about finding, starting and staying in a new role. The research offers insights into the recruitment process, and reveals the potential scale of the task of retaining staff in the competitive marketplace once these new starters initial honeymoon has passed. We highlight some positive steps that leaders and managers can take to ensure the new starter remains in their chosen role.

4 6 Beyond the Honeymoon Keeping new employees from the exits 7 Main findings While there is evidence of good practice in the way managers prepare for new employees coming on board, we have also uncovered significant challenges. The importance of information conveyed to recruits by their potential employers at the earliest stages of the hiring process is clear. Such information outranks other sources, for example content from online or informal networks. The majority of new recruits also rely on information directly provided to them by their potential employer when making a decision to join an organisation. Respondents on the whole said they received comprehensive and accurate information about the new role. Honeymoon period We ve identified a honeymoon period experienced by both new starters and managers that on the surface bodes well for a long-lasting relationship. This is undermined however by the fact that so many new recruits plan to leave their organisation in the short term, irrespective of whether it is public, private or third sector. There appears to be an anticipated rush to the exit, with over a half of new starts expecting to have left their new firm within three years, and with many already looking for a new job. This appears to be a systemic problem with line managers also only expecting a minority of new recruits to stay beyond three years. The formal allocation of a buddy or mentor to new recruits does not seem to be accepted as standard practice. However, our research did reveal the importance of the work colleagues providing a welcoming environment which facilitates more informal support. Managers do appear to spend time getting to know their new recruit and are available, according to most new starters. However, new starters also said that discussions around target setting and personal development plans are not universal. Interestingly, this does not match the responses from line managers, more of whom say such discussions are being held. Our findings show that managers are not being as clear as they could be in conveying the formal elements of the induction process to new starters, and ensuring new starters understand what is required of them. New recruits identified that feeling productive and valued, being well informed and supported, and having their expectations of their roles matched by actual experience are the key factors that elevate delight with a new job, and these same factors make new starters more likely to stay longer at their organisation. A significant minority (30%) of new recruits feel their capabilities are not being fully utilised.

5 8 Beyond the Honeymoon Keeping new employees from the exits The research context: the thinking that framed our research This research has been conducted within the context of evolving theorising and a developing literature around best practice in staff recruitment and retention. The importance of the first 0 days in a new job was highlighted by Watkins (2003) and thus we ve adopted a three-month time frame to look at the relationship of managers and their new recruits in key areas. Most of us will be familiar with the term induction to describe the way employers introduce their new starter to the role and organisation. Armstrong and Taylor (2014) describe induction as the process of receiving and welcoming employees when they first join a company and giving them the basic information they need to settle down quickly and happily and start work. They argue that organisations achieve a higher degree of staff retention and productivity in the early stages of employment when they get induction right. A linked, but wider concept is new employee orientation (CMI, 2014). This is typically seen as a broader set of activities for new starters that goes beyond the traditional communication of information and checklist approach of induction. Orientation has evolved to deal with a more complex and demanding workplace (Dunn and Jasinski, 200) and successful orientation programmes have been shown to have a significant impact on corporate performance (Klein and Weaver, 2006). However, it is not just what happens once a new member starts that is important. The concept of onboarding is used to look at the entire recruitment process from the earliest stages (CIPD, 2014a). Snell (2006) describes onboarding as the direct bridge between the promise of new employee talent and the attainment of actual productivity. How the employer behaves in the pre-employment phase is seen as an important component of successful retention of talent, and research by the Aberdeen Group (2013) suggests that the days before and after an employee s start date are vital for setting standards for the future. They describe the value of pre-boarding as a means of early engagement with new hires to ensure their smooth transition into the organisation. We looked therefore at the recruitment process before people joined, asking new starters and line managers about this process from its earliest stages. Socialisation i.e. the process by which employees learn and adapt to new jobs and the culture of a workplace, is an important consideration. Watkins (2013) suggests that the transitioning process can be challenging when the new employee feels vulnerable either because of a lack of established working relationships or a detailed understanding of what is expected in the new role. Research suggests that focusing on a new starter s needs achieves a greater degree of success through effective socialisation (Cable et al, 2013). Many organisations adopt a buddy system whereby new starts are allocated to an existing person to help learn the ropes. This relationship often involves conversations surrounding department or team processes and work politics. We therefore asked new starters and line managers about both the formal and informal elements of starting a new job - such as interaction with new colleagues, within or outside of the formal induction process, and buddy or mentoring schemes. Businesses benefit where a new starter is both productive and committed, when they join and over the longer term. Statistics suggest (CIPD, 2014b) that on average staff stay in a job for nine years, however this must be set against continuing changes in the world of work. The emergence of a gig economy and associated shifting career patterns mean expectations are evolving, with more willingness to explore alternative employment opportunities (Goffee and Jones (2015)), Circle Research (2012). We therefore looked at people s feelings about their new role or new hire, and how long they think they will stay in a role. Our methodology The survey was completed by 514 employees who had started a new job in the last twelve months (new starters), and 1134 line managers of new starters (line managers). Almost all respondents worked full time (2%) with 54% in the private sector, 30% in the public sector and 16% in the third sector. The survey provides quantitative data detailing the experience of recruitment and onboarding in the UK. Additional qualitative data, derived from responses to open text questions, provides further insights of both new staff and line managers. Due to the design of the survey these two groups, line managers and new starters, are not directly related i.e. the line managers are not the line manager of those that identified as new starters.

6 10 Beyond the Honeymoon Keeping new employees from the exits 11 Figure 1: Information received and role discussions Figure 2: During the application and recruitment process, approximately how long did you spend on researching the new organisation Contact, even if just an , between making the job offer and the start date is essential. It helps set up expectations and a relationship. A Line Manager s view I was misled by what my responsibilities would be it was a wrong environment for me to grow in. A new recruit s view I was provided with a comprehensive job description and/or role profile. I was provided with information about the history and mission of the organisation by my employer Up to 1 hour 1 4 hours Don t know/can t recall 4 12 hours More than 12 hours 6% 18% 6% 28% Figure 3: Managers: new recruits had undertaken adequate research about the organisation prior to joining 42% Detailed findings Information for new joiners We asked a series of questions around the information that recruits are getting at the recruitment process stage regarding their possible new role and organisation. Respondents on the whole appeared to have been well informed by new employers with 7 in 10 stating that information received from employers prior to recruitment was accurate and useful. A similar proportion of new recruits also said that information provided to them by their potential employer was a major factor in deciding to take the new role. Information provided by employers was more important than other sources, such as researching online or with one s social network. Although around 7 in 10 looked online, less than half said it was major factor in deciding to take the role; just under half found information by talking to their personal network but only 3 in 10 said it was major factor in deciding to take the role. Although 70% of new starters spent less than four hours researching the new organisation, both new starters and managers felt that they/their new recruits had done enough research on the new role. Almost 80% respondents were satisfied that they had undertaken sufficient independent research to make an informed decision, and a similar proportion were satisfied with the information they had gathered. An similar proportion of managers also believed that new recruits had undertaken adequate research prior to joining, with only 16% thinking new recruits had not done enough. After having started their new role, 68% of new starters found clear connections between the information provided in advance and the actual work. I was able to discuss the role with my future line manager I was able to discuss the role with my future colleagues Strongly Agree Somewhat Agree Don t Know/Not Applicable Somewhat Disagree Strongly Disagree Strongly Agree Somewhat Agree Don t know Not applicable Somewhat Disagree Strongly Disagree 3% 4% 11% 5% 28% 50%

7 12 Beyond the Honeymoon Keeping new employees from the exits 13 Figure 4: Mentor and Buddy support Figure 5: Colleague support I was formally allocated a buddy upon joining the organisation My new colleagues made me feel very welcome on my first day I was formally allocated a mentor upon joining the organisation My new colleagues have given me advice on how to 'fit in' I found my own mentor through informal methods My new colleagues gave me information about the internal political environment of the organisation I found my own buddy through informal methods During my first 3 months my colleagues were able to spend adequate time with me Colleagues and settling in We asked questions about new starters interactions with their colleagues. We looked at whether mentoring/buddying was a formal part of the induction process. We also explored socialization by looking at how new employees are settling into the culture of the organisation. Key findings: The formal allocation of a buddy or mentor to new recruits does not seem to be accepted as standard practice. Only around one-third of new starts said that the practice was formalised, although a further third found similar support mechanisms themselves through informal means. Younger starters are more likely to have been allocated a mentor or buddy. Existing staff provide a lot of support for new starters through both formal and informal mechanisms. While this is generally available, almost a quarter of new starters said they did not have adequate time with colleagues during the first 3 months Colleagues are overwhelmingly welcoming and important sources of advice on how the organisation works politically and culturally. Over 60% of new starts reported that colleagues gave advice about the political environment, while almost 70% agreed that accessing the internal grapevine helped understand how the organisation works. Strongly Agree Somewhat Agree Don t Know/Not Applicable Somewhat Disagree Strongly Disagree

8 14 Beyond the Honeymoon Keeping new employees from the exits 15 Line Managers and new starts One key relationship we wanted to explore was that of the line manager and the new starter. This included the time the line manager was available, and what sort of development plans and objectives they discussed with the new start. Key findings: Although over two-thirds of new recruits said their line manager was available for advice when needed, one-in-five stated that this was not case, and one-third reported that their manager had not spent enough time with them in the first three months. While line managers generally agreed that objectives and targets have been set and/or development plans put in place, a significantly smaller proportion of new starts share this understanding with as many as one-quarter suggesting clear targets had not been set. Figure 6: New recruits and managers relationship During my first few weeks i discussed my skills and knowledge with my line manager During my first 3 months my line manager spent adequate time with me Strongly Agree Somewhat Agree Don t Know/Not Applicable Somewhat Disagree Strongly Disagree Setting goals and agreeing plans New starters reveal that discussions on objectives and personal development plans are not universal with under half reporting that a personal development plan had been agreed. A greater proportion of line managers believed this formal goal setting had been put in place, and in this regard there is a mis-match with what line managers say happened compared to their new recruits. Figure 7: During the first 3 months a development plan was agreed New starts 46 Line managers Figure 8: During the first 3 months objectives and targets were set New starts 55 Line managers The Honeymoon To explore feelings of satisfaction, we asked both groups just how delighted they were with the new appointment Key findings: Over eighty percent of line managers and three-quarters of new starters expressed delight, with even higher satisfaction from those in their first job after obtaining qualifications. However, 3 in 10 of new starts felt their skills and capabilities were not being utilised. Figure : All new starters I am delighted with my new job Figure 10: Line Managers I am delighted with them 5% 14% % 2% 44% 4% 3% Strongly Agree Somewhat Agree Don t Know/Not Applicable Somewhat Disagree Strongly Disagree % 41% 43% I try and identify areas that need to be developed and provide support for that development early make the most of the honeymoon period. A line manager s view Managers are very positive about new starters. From the line manager perspective, the top five factors that correlated with delight with their new recruit were: 1 The recruit quickly adapted to the culture of the organisation 2 They showed understanding of the particular requirements of this role 3 They were willing to develop good working relationships with colleagues 4 They showed understanding of the particular working practices of the organisation 5 They understood the importance of organisational politics

9 16 Beyond the Honeymoon Keeping new employees from the exits Feelings of delight We looked at factors that make new recruits feel delighted with their job. Key findings: For new starts the feeling that their capabilities and skills are being fully utilised ties in highly with their delight with their job, as does the information that they were told about the job at the start of the recruitment process tallying with their actual experience. These findings underpin the importance of the onboarding process, starting from the very point when the recruit first comes across the job opportunity. From a new starts perspective, the four factors that showed the strongest relationship with their expressed delight are when they feel: 1 Their capabilities and skills are being fully utilised in the new role 2 Their line manager is available to talk to whenever they need their advice 3 They found clear connections between the information provided before joining and their actual work 4 They found that information provided by the employer prior to recruitment was accurate and useful But... when we asked about retention the picture is less positive. Key findings: The majority of new starters surveyed already see their time at their organisation as limited, with almost sixty percent expecting to have left the organisation within three years, and 3 in 10 prepared to leave within one year. While under twenty percent of managers anticipate staff will leave within one year, their expectations over the threeyear time horizon are broadly similar to new staff. The job is very manageable but I don t feel I am maximising my abilities. A new recruit s view Figure 11: New Starters Approximately how much longer do you plan on staying at your current organisation? Don't know 10% I am actively looking for a new job 1% Up to 12 months 11% 1 3 years 3 5 years 11% More than 5 years 21% Figure 12: Line Managers Approximately how much longer do think they plan on staying at your organisation? Don't know 6% I think they are actively looking for 11% a new job Up to 12 months 7% 1 3 years 3 5 years More than 5 years 16% 28% 25% 35% Clues to longevity For the new recruit, the top three factors that tallied with longevity were that: 1 They felt their capabilities and skills were being fully utilised in their new role 2 They found clear connections between the information provided before they joined and their actual work 3 The information provided by their employer prior to their recruitment was accurate and useful

10 18 Beyond the Honeymoon Keeping new employees from the exits 1 Recommendations for Managers There are real financial and productivity reasons for avoiding the short-termism that our survey reveals in both new recruits and managers expectations of longevity of service for employees. At the very least, organisations can ensure they pursue approaches that have been shown to bring satisfaction to those new recruits. Clear communications Make sure there is a clear connection between the information provided to the potential new recruit and the actual work they will undertake. Don t hide the real job, this could just be storing up trouble. Line Manager availability New recruits value the sense that the immediate manager is available when they need them. Ensuring productivity Developing the productivity of the new recruit brings them delight in the job, and promotes longevity A sense of progression A logical extension of making staff feel productive and valued from the beginning of their job would be to give them a clear sense of progression. Mentors, buddies & colleagues in place Being assigned a mentor or buddy can be an element of new starts feeling delight with their job. And overall appreciation of co-worker support should not be underestimated. Open thinking about Induction A reliance on a narrow timescale and checklist-approach to induction can prevent leaders from thinking more widely about developments in onboarding, and successfully competing for and retaining talent. The recruitment process can be formulaic here without enough input from senior colleagues and the decision to recruit can be a little crisis management A line manager s view A checklist for retaining and leading your new recruit: 1. Understanding the role Make the honeymoon last by ensuring your new recruit knows what the role involves. 2. Deliver and manage expectations Give your new recruit a clear and honest picture of the opportunities to progress in the organisation. Their induction period effectively starts as soon as they become aware of a job opportunity with you: get it right from the outset with good communication. 3. Be available New recruits put a premium on you being available in person and online in the initial months. Managers are often time poor, but this is a worthwhile investment if it avoids you having to go through the recruitment process again. 4. Rally the support of colleagues New recruits value colleague support backed up by a mentor or buddy and more experienced staff value being involved in talent nurturing. Provide opportunities to meet other new starters so they know they are not alone. Help all staff understand the importance of their own contribution to talent retention. References: Aberdeen Group (2013) Strategic Onboarding 2013: A New Look at New Hires, Aberdeen Group, www. aberdeen.com, accessed September 2015 Armstrong, M. and Taylor, S. (2014) Armstrong s Handbook of Human Resource Management, London: Kogan Page, 13th ed. Cable, D. M., Gino, F. and Staats, B.R. (2013) Breaking them in or eliciting their best? Reframing Socialization around Newcomers Self-expression, Administrative Science Quarterly, March CIPD (2014a) Induction Factsheet, London; Chartered Institute of Personnel and Development CIPD (2014b) Megatrends. The trends shaping work and working lives: Has job turnover slowed down?, London; Chartered Institute of Personnel and Development CIPD (2015) Resourcing and Talent Planning. London: Chartered Institute of Personnel and Development Circle Research (2012) Exploring the shift in employee expectations The Perspective Series in association with Vodafone CMI (2014) Organising the Induction of New Recruits Checklist 001, Corby: Chartered Management Institute Dunn, S. and Jasinski, D. (200) The role of new hire orientation programs, Journal of Employment Counselling, September, Vo. 46 Gofee, R and Jones, G (2015) Why should anyone work here? Harvard Business Review Press Klein, H.J. and Weaver, N.A. (2006) The Effectiveness of an organizational level orientation training program in the socialization of new hire. Personnel Psychology, 53: Oxford Economics (2014) The Cost of Brain Drain, Understanding the financial impact of staff turnover Snell, A. (2006) Researching onboarding best practice, Strategic HR Review, Sept/Oct 2006 Watkins, M. (2003) The First 0 Days, Harvard Business School Publishing, Boston Watkins, M. (2003) Avoiding onboarding and promotion traps, Strategy and Leadership, Vo. 41, No. 6, pp 43-46

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