Induction. Not to be confused with orientation which is a specific course or training event which new starters attend

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1 Induction What is induction? The general term used to describe the whole process whereby new employees in an organisation adjust to their new roles and responsibilities within a new working environment Not to be confused with orientation which is a specific course or training event which new starters attend

2 Why is induction important? The importance of induction and settling new starters into an organisation is not a new idea Hill and Trist (1955:276) proposed The Survival Curve which stated that there were three distinct phases that employees go through upon joining a new organisation and that each carries with it varying degrees of risk in terms of the likelihood of that employee leaving the organisation: - Induction Crisis - Differential Transit Phase - Settled Connection

3 Traditional approach to employee induction An informational approach to induction, a formal welcome, tour, benefits and issuance of the employee handbook Little, if any, consideration given to the broader strategic issues such as the organisational culture This can cause a general lack of interest from line management and new employees due to the limited scope of this approach and absence of a clear business case

4 A new perspective on employee induction New starters should be a source of new focus, new energies and possibly new creativity to add to the organisation s Human Capital pool Regardless of the size of a business, the need to get new hires productive as soon as possible is critical It is a steep learning curve for any new start on average the time for new hires to achieve full productivity ranges from eight weeks for clerical jobs to 20 weeks for professionals to more than 26 weeks for executives (Rollag, 2005:250) It is imperative that new starts transform into productive employees as soon as possible

5 Onboarding Onboarding refers to the mechanism through which new employees acquire the necessary knowledge, skills and behaviours to become effective organisational members and insiders (Bauer, 2011: 251) Onboarding is concerned with getting new starters to feel like they belong and are a part of their new organisation as quickly as possible First impressions count for new starters and they quickly see what rate others work at and then work to this standard Failure to onboard employees correctly can have a substantial negative impact on an organisation leading to poor attitudes and negative behaviour and high levels of turnover

6 What does work in terms of induction? Organisations that are more successful at getting new starts up to speed quickly tend to adapt a relational approach to induction Relational approach is based on assisting new employees to quickly build relationships with coworkers giving them access to information required to perform the role

7 Specific practices to enhance socialisation process Research has shown that a strategic approach to introductions is more effective than simply being introduced into a large group Strategically target individuals who will interact with the new start early on e.g.: - Mentoring process - Buddy Approach This proactive socialisation promotes and demonstrates good organisational citizenship behaviours

8 Example Induction Schedule for Rapid Onboarding Stage One General Induction Informational Approach Introduction: (explain) Employment conditions: (explain) Stage Two Onboarding Relational Approach Orientation: (visit and show) Meet key people: (introduce) Work environment: (show) Payroll: (explain) Health and safety: (explain)

9 Turnover Employee turnover, labour turnover or natural wastage as it is sometimes referred is the number of people who will inevitably leave the organisation and will need to be replaced in order to maintain production or service (Gunnigle, 2011:278) Pull Factors: where organisations have no control over: Moving to a new location Arrival of children Retirement etc. Push Factors: where organisations have control over: Dissatisfaction with work Lack of promotional and or developmental opportunities etc.

10 The impact of the external labour market environment on turnover levels High performers may be headhunted by competitors Organisations have to deal with turnover during cyclical boom and bust periods Attention turns to downsizing during a downturn in the economy

11 Should an organisation seek to minimise its turnover levels? Is Turnover always a bad thing for an organisation.??? - New employees can bring: Fresh ideas and perspectives Ignite new discussion and debate Refresh the human capital pool Reduce complacency and reduce development of group think Bring new competences which add value to the organisation

12 Costs of labour turnover Some basic labour turnover costs are common to all organisations: - Payroll costs - outstanding contractual obligations such as holidays - Cost of cover for an employee while the replacement recruitment process is on-going - Costs associated with the actual recruitment and selection process itself Hidden costs - associated with underperformance of individuals who are working out their notice

13 Measuring Turnover HR professionals need to be able to predict and control in so far as possible the rate of turnover within their organisations Two common measures of turnover are the transitional method and the central method (Pilbeam, 2006:277): Transition Rate (%) = Leavers from the group in post at the start *100 Total employees in the group at the start Central Rate (%) = Total leavers from the group*100 Average number of employees in the group

14 Specific practices to analyse turnover Analysis of turnover should also measure where and why it is happening Exit interviews - with departing employees to ascertain their reasons for leaving can form part of a wider analysis of turnover Cohort analysis - where the level of turnover by individual cohorts or groups of employees is analysed - Particularly in relation to an analysis by skill set

15 Retention A key tool to reducing undesirable turnover is the ability to hold on to high performers by developing a focused strategic approach to retention (Garger, 1999) S tr a te g i c A p p r o a c h to R e te n ti o n Recruitment Selection T raining Career Management Motivation Compensation

16 Do you understand the links between employee induction, turnover and retention? Can you describe what employee induction is and why these programmes are invested in? What is onboarding? What impact does employee turnover have on an organisation?

17 How can you measure employee turnover? How can an exit interview be useful in improving employee retention? What is employee retention and can you identify why it is important from a strategic perspective?