All Aboard Next Generation Talent Acquisition and Onboarding Strategies
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1 All Aboard Next Generation Talent Acquisition and Onboarding Strategies Pittsburgh SHRM Conference October 11, 2017 willistowerswatson.com
2 Attracting candidates is more difficult Especially for key positions and emerging markets 90% 80% Attraction Challenges Nearly half (48%) of employers report hiring activity increased 77% 76% 70% 66% 60% 55% 54% 56% 57% 50% 45% 44% 40% 30% 28% 20% 10% 0% All employees Diverse employee populations Critical-skill employees High-potential employees Top-performing employees All employees Diverse employee populations Critical-skill employees High-potential employees Top-performing employees Mature Markets Emerging Markets Source: 2016 TM&R and GWS Surveys 2
3 Keeping talent has intensified Especially for high demand roles 80% 70% 60% Retention Challenges One-third (35%) of employers report turnover activity increased 59% 70% 65% 50% 40% 37% 47% 44% 41% 47% 30% 20% 20% 28% 10% 0% All employees Diverse employee populations Critical-skill employees High-potential employees Top-performing employees All employees Diverse employee populations Critical-skill employees High-potential employees Top-performing employees Mature Markets Emerging Markets Source: 2016 TM&R and GWS Surveys 3
4 Financial risk of turnover A combination of cost and probability Lost productivity Hiring Training Job vacancy Financial cost of turnover Probability of turnover Financial cost at risk Job level Financial cost of turnover (% of annual compensation)* % of ee s at high risk of turnover** Financial cost at risk*** Senior manager/executive 74% 31% 23% Professional 59% 25% 15% Sales and customer/client Management 59% 27% 16% Business support 48% 27% 13% 4
5 Most significant cost is lost productivity Best in class companies have improved ramp up by 30 50% Months to productivity It takes 4 12 MONTHS, on average, for a new employee to become fully productive 50th percentile Executive Manager Professional Tech support Business support Production/Ops The cost of this lost productivity averages $20,665 per employee Source: Financial Cost of Turnover survey, Towers Watson,
6 Thus indicating it is important to get talent acquisition and onboarding 6
7 Current talent acquisition practices falling short What we have heard Culture Matters We are good at recruiting for technical skills, but need to be better at assessing cultural fit Attracting the Wrong Type Plenty of applications but quality is poor; we are not getting our fair share of talent within the market Recruitment in Isolation We do not utilize or pay attention to what our colleagues are doing throughout Talent Management; succession, learning and talent acquisition are not tied together Cumbersome Processes We get complaints by recruiters and managers that our hiring process is longwinded, resource-heavy and slow. There must be a better way Hiring for the Future We know that our organization is changing, yet we have not taken into account what this means for how we source and hire candidates 7
8 Getting them hired is one thing Onboarding them is another 4 out of 5 companies do not have a specific budget for onboarding 30% of new hires don t achieve performance requirements in their first year 8 months For the average new employee to reach full productivity 58% of companies do not measure newhire productivity at all $10,000 cost for a company to recruit one position on average 23% of new hires that organizations lose before their one year work anniversary Source: 2012 Allied Workforce Mobility Survey 8
9 The opportunity is significant For those whom strategically invest in onboarding 91% first-year employees retained 60% Difference in annual improvement in revenue per full time employee compared to organizations with no formal onboarding process 33% Year-over-year improvement in hiring manager satisfaction 63% difference in annual improvement in customer satisfaction compared to organizations with no formal onboarding process Bottom Line: Strategic investment in effective onboarding produces better employee retention, engagement and productivity. Source: Aberdeen, Onboarding 2013 and NBRI 9
10 Reinvigorating talent acquisition Leveraging your Employer Brand Revamping Onboarding 10
11 Talent Acquisition - Challenges and Opportunities
12 Companies vary in their maturity There is scope for improvement, across many facets High Maturity Low Maturity Reactive applicant sourcing Lack of trust in HR Ambiguous roles of HR vs. line managers Poor data quality Long lead time to recruit Little automation Line managers lack knowledge Inconsistent processes HR focused on administrative tasks Unknown costs Medium Maturity Some proactive applicant sourcing Over-reliance on external candidates Preferred supplier lists for agencies and head hunters HR approval required for hiring Line managers demonstrate limited knowledge of recruitment practices Some recruitment specialists Behavioral competency framework in place to consistently rate candidates Consistent processes but slow approval Medium lead time to recruit Costs known and managed corporately Proactive applicant sourcing Culture of developing talent from within Strategic relationships with suppliers Shared recruitment service center partnering with the organization Business seeks out HR for their support Clear roles and responsibilities between business and recruitment specialists Line managers act in accordance with employment law HR spends time on added-value resource planning activities Easily accessible and consistent reporting Fully automated end-to-end candidate management process Competency framework used to consistently rate candidates Quick lead time to recruit Costs known and managed corporately and by managers 12
13 The market reality 13
14 Budgets stick to traditional strategies Breakdown of Recruiting Budgets 8% 8% 8% 30% Job Boards and Advertising Recruiting Agency Costs Recruiting Tools 9% Employee Referral Program Recruiting Events 17% 22% Employer Branding Other Source; icisms Hiring Insights 14
15 Technology, branding, messaging, assessment and candidate management shapes the perception applicants have of an organization 15
16 Why get on board with a marketing approach to recruiting? 90% of HR professionals agree that having a strong employment brand is more important than it was five years ago. 94% of job seekers say they are likely to apply for a job if the employer actively manages their employer brand online. Source: icisms 17 Recruiting Tips for
17 Your employer brand should embody the EVP Needs to be complementary to your corporate brand Internal External Value Proposition Employee Value Proposition The deal between employers and their employees Customer Value Proposition The deal between companies and their customers Employer Brand Corporate Brand Brand The connection between employers and their employees The connection between employers and their customers 17
18 Consumer versus employer brand Consumer Brand Perception customers derive from all interactions, experiences and touchpoints with a product or service Employer Brand Summarizes what an organization wants to be known for, as an employer. The worlds most valuable brands drive consumer behavior A robust employer brand drives employee behavior 18
19 Employer brand An employer brand (or its Employer Promise ) is the overarching promise made to employees, which translates the EVP into a clear and lasting perception of what it s like to work at an organization. 19
20 Criteria for an effective employer brand and EVP Credible, impactful, distinctive, consistent and aspirational Relevant Sustainable Differentiated Meaningful across geographies 20
21 When you think of companies with a strong employer brand Who comes to mind? 21
22 Employer Branding The Power of Purpose Mission - To make kids better today and healthier tomorrow 22
23 Getting on board with a marketing approach to recruiting Improving the efficacy of career sites Articulate the employer brand and value proposition, offering a window into the company culture and people that differentiate it from its competitors. Include sticky, engaging content, leveraging different mediums including videos, testimonials, podcasts, images and employee blogs to inform and engage targeted candidates. Highlight relevant career categories and paths. Make it easy for visitors to share content via and social networks, further growing the company s talent community and promoting its relevant job opportunities Deliver a positive user experience, providing easy-to-follow navigation, direct access to relevant content, and contact us or chat features that allow candidates to easily ask questions about job vacancies or the application process. 23
24 Improving the efficacy of career sites Technology considerations Check for platform compliance apple and android Ensure that there are not too many clicks. Each extra click will lose some applicants Does it allow for alerts? Does your recruiting platform import into your HRIS, saving time for both current staff and new hires? (this also shows how tech savvy your culture is) 24
25 Getting onboard with a marketing approach to recruiting The candidate experience - communicate to candidates like customers 25
26 Draw them in keep them in Focus on a positive candidate experience and then deliver on your EVP The Candidate Value Proposition (CVP) is experienced during the sourcing process it is how applicants are managed via technology, the degree of transparency and responsiveness, and the messaging. 26
27 Talent acquisition best practices Check your employer brand, what is your EVP? Have employees spread the word through social media, with a strong focus on YouTube. Video is 5.33 times more effective than text. Don t use your own testimony, but those who have a career with your company to express their satisfaction. A high referral rate indicates a healthy employment brand Monitor forums that portray your image as an employer 78% of candidates are influenced by employee reviews when deciding where to work. (Source: Glassdoor) Ensure the efficacy of career sites 49 percent of job applicants leave with a negative impression after an unsuccessful application Source: Career Builder North America survey
28 Onboarding - Challenges and Opportunities
29 The first 90 days will make or break your new hire 22% of staff turnover occurs in the first 45 days of employment 90% of employees decide whether to stay or go within the first six months! Sources: Get Ready for 2015: Ten Top Actionable Talent Acquisition Trends Bersin by Deloitte; Bamboo HR 29
30 Orientation versus Onboarding Orientation is an event Orientation Onboarding Time Single event Several months to a year Delivery Classroom style 2 way feed of info, scalable Message Need to know/gather info Customized based on role Objective/Results Source: icisms Onboarding is a process Obtain info necessary to get started, ends and then relies on manager/others to acclimate into role and company Fully integrate to get them productive faster, strengthens connection to role and company 30
31 Orientation versus onboarding Forms, Checklists Transactional Paper-Based 1 Day or Less with HR HR FUNCTION Separate from Hiring Training Process Culture-Setting Formal Introductions TRAINING FUNCTION Integrated with Hiring Socialization Mentoring Use of Technology BUSINESS FUNCTION Source: Bersin, Strategic Onboarding
32 What is onboarding? An effective onboarding process includes all the activities, processes and tools associated with ensuring that employees transition effectively and efficiently into new roles or organizations. From an ADMINISTRATIVE perspective efficiently completing all transactional aspects while reinforcing the social, cultural and educational perspectives From a ROLE-FOCUSED perspective conveying the information and learning necessary to promote a new employee s immediate and long-term productivity From a CULTURAL perspective a set of processes and activities to create a sense of belonging, build engagement and establish relationships CULTURAL ROLE ADMINISTRATIVE 32
33 Onboarding The Four C s Compliance is the lowest level and includes teaching employees basic legal and policy-related rules and regulations. Culture is a broad category that includes providing employees with a sense of organizational norms both formal and informal. 1 2 Connection refers to the vital interpersonal relationships and information networks that new employees must establish. Clarification refers to ensuring that employees understand their new role, related expectations and are provided the resources and tools to be successful. 3 4 Source: SHRM s Guideline Series Onboarding New Employees: Maximizing Success 33
34 Key onboarding roles and responsibilities Pre-Start Date Start Date Post-Start Date Business Unit Leader/ Senior Leader Welcome visit Hiring Managers Approvals, job assignments/goals Welcome lunch Follow-up survey Recruiters Offer/accept Onboarding Coordinators Learning and Development Buddy/Mentor Single point of contact, manages the process Follow-up survey Orientation program, instructors, assimilation content Personal contact, simple questions, connection Facilities, IT, Security Computer, office space, security ID New Hire Completes forms, reviews onboarding materials Follow-up survey 34
35 Administrative/Compliance Pre-boarding Activities that are often best managed prior to day one Offer letter generation and acceptance Completion of new hire forms Emergency contacts W-4 (state and federal) I-9 (everify) Direct deposit Completion of work agreements Code of Business Conduct Workplace harassment policy Automated background check and drug screening Enrolling in benefits Training and orientation materials Coordination with other departments (e.g., Facilities, Security, IT) Best-in-class companies are 35% more likely to begin onboarding before day one. 35
36 Administrative/Compliance Pre-boarding Company and team information Provide detailed info, including a picture, of teammates so when they come in the first day they see a familiar face. Provide info on company mission, vision and values so new hire understands how they fit into the organization and can contribute. Orientation Video 36
37 Culture and Connecting Tell your story Industry History Big Picture Strategy Culture Values People 47% of US workers don t know or are unsure of what their employers core values are! Source: First Year Impressions are Everything 37
38 A thoughtful onboarding process Goes beyond day one administrative activities Deliver the information new hires really want to know Meet the needs of the new hire, the department and the organization Introduce new hires to the organization and integrate them into the culture Creating a positive experience for new hires will influence their perception of the organization for the longer term 38
39 Culture and Connecting Make them feel welcome Beyond day one Plug the new hire into your organization s social networks within the first three days Announce new hires companywide Send an introductory departmentally and to those whom have a need to know Include in meetings and calls let them sit, listen and learn Arrange a departmental lunch to get to know team members in person Schedule weekly check ins (at least for the first month or so) 39
40 Culture and Connecting Establish a Mentorship program A mentor can teach new employees about the organization, offer advice, help with job instruction, and provide support in social and political terms provide a safe place for employees to go with questions they are hesitant to ask their managers for fear of seeming incompetent Research indicates that new employees are more likely to have learned and internalized the key values of their organization s culture if they had spent time with a mentor* Source: SHRM s Guideline Series Onboarding New Employees: Maximizing Success 40
41 Culture and Connecting First month bailout period One month is the most popular time for employees to bail out before they get too deep. Keep up good communications Establish 60, 90 and 180 day goals and objectives Ensure the employee has received or signed up for necessary training Remain open and available for questions, concerns, and assistance Meet with employee for informal 30-day check in Acknowledge employee for completing the first 30 days and thank them for joining the team According to Gallup, direct managers are the number one reason employees quit and are capable of creating up to 70% variance in engagement levels. 41
42 Role Focused/Clarification Empower them to contribute Communicate role expectations Key Areas of Support Assign a buddy or mentor Growth opportunities - integrate learning into the onboarding process and invest in career development Provide 30, 60, 90 and 180 day reviews/performance checkins 42
43 Role Focused/Clarification Empower them to contribute Invest in career development Visual career paths Success/job profile Career development plan Job rotations Projects Platforms to showcase ideas Regular, routine progress checks 43
44 When developing your onboarding strategy/program Consider generational expectations and priorities Baby Boomers Generation X Generation Y Generation Z Focus on the process and protocol over socialization Formal feedback mechanisms Traditional recruitment and retention mechanisms (benefits, pay, retirement plan) Clearly defined onboarding roadmap, sequential Level of respect Mentor program Frequent feedback mechanisms ( day performance reviews) Work/life balance Objectives and timelines for onboarding Recognition and frequent feedback Internal and external networking Immediate, embedded feedback Flexibility in the workplace Enable contribution Link onboarding to learning team environment Openness and transparency Expects 5 to 7 major career changes (emerging) Team-based socialization (and likely technologyenabled) Positive feedback and confidencebuilding Goal- and achievementoriented onboarding Entitlement Desire for multitasking, a variety of priorities You re special 44
45 A leading practice model for onboarding for the first 90 days Getting Settled First 90 Days Activities Build Excitement Prior to Day One Make a First Impression Day One Ensure Warm Welcome Week One Welcome letter from manager Tokens or collateral are sent to welcome Invite to team lunch or organization event Administrative activities begin Associate ID is assigned Limited access to organization information and website is provided Notifications sent to all internal partners for setup First-day greeting and introduction by manager Buddy assigned Workplace tour Have workspace ready, phone and computer access activated and and keys available Self-paced online onboarding guides activities Introduction to culture Warm welcome extended beyond department Network begins to be identified HR profile review personal data Attend department orientation activities OH&S training Introduction to performance management Begin to set personal goals and objectives Demonstrate small accomplishments Provide feedback on performance Participate in buddy program Online onboarding guides activities Complete objective setting Access other training sessions Online surveys completed, i.e., employment equity, onboarding feedback Outcomes Associate Is excited to start Understands role Reviewed basic organizational info Completed most paperwork Associate Has positive first impression Feels welcome by manager and team Completed paperwork Accessed onboarding Has access to tools and equipment Associate Feels s/he made the right decision Begins to build relationships Begins objective setting Associate Starts contributing Completes objective setting Hits onboarding milestones Provides positive feedback; feels I made the right decision Administrative Focus Professional and Cultural Focus 45
46 Onboarding continues beyond the first 90 days Fitting In 4-6 Months Belonging Months Activities Post 90-day activities often include programs that span multiple months, such as: New hire cohorts & senior leader gatherings Mentoring program Continued buddy program Career development and training programs New hire recognitions for achievements Rotational assignments Feedback forums surveys, focus groups Outcomes Associate Understands how to work within team Has a clear understanding of his/her specific role and where to go for questions Provides fresh insights on existing processes Understands training and development options Understands importance of own function to organizational objectives Associate Feels s/he is fitting in and no longer new Begins to understand bigger picture of the organization Feels empowered to make enhanced contributions Has formed relationships inside and outside of team Understands career paths; where the organization is going and how s/he can connect Feels this is the best place to be Professional and Cultural Focus 46
47 Leveraging technology Leading companies use technology to push down costs, facilitate information sharing, increase collaboration and drive an optimal employee experience Past Practices Largely dependent on managers to orient employees Training was an all-day session Lots of paper Employee handbooks Arrive at work feeling lost and overwhelmed Sign many documents on the first day Future Potential Employees receive access to information before they start Most forms can be completed or begun in advance Time to full productivity accelerated New hires can begin to develop networks sooner Ongoing collaboration and connection through discussion forums 47
48 Benefits of an onboarding technology solution Eliminates or reduces HR/Manager s time producing, completing and verifying paperwork Manual mailing of offer letters or offer packets helps support GREEN efforts Filing of personnel paperwork The need to manually collect I-9s, to have binders/folders that need purging for compliance; copying of documents Allows completion of forms and agreements prior to first day of work Simplify forms and eliminate rework Other auxiliary departments are notified of impending new hire (e.g., IT, facilities, security/badging) Frees them up to hit the ground running on Day One Provides a central location to get all information needed as a new associate 48
49 Onboarding pitfalls to avoid 1. Cramming 20 hours of info into 4 hours of orientation 2. Neglecting the importance of cultural adaptation 3. Failing to address generational needs and differences 4. Starting the new hire when the supervisor is absent 5. Relying on org charts to explain lines of communication 6. Running a disorganized program 7. Adopting a sink or swim approach because it worked before 49
50 Best practices for onboarding Take care of the basics prior to the first day on the job. Develop a written onboarding plan and make it participatory. Engage stakeholders in planning Be sure your program is consistently implemented. Use technology to facilitate the process. Use milestones, such as 30, 60, 90 and 180 days on the job to check in on employee progress. Be crystal clear with new employees in terms of: Objectives, Timelines, Roles and Responsibilities 50
51 In a constant struggle for top talent providing a positive candidate experience and effectively integrating new hires into the organization is key to ensuring their and your success.
52 Thank You!!! Pamela Murray Senior HR Consultant Value Added Services, HR Partner 225 Schilling Circle Hunt Valley, MD E pamela.murray@willistowerswatson.com 52
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